Rajasthan issues EV Policy 2021 to boost electric two-wheeler sales
ECONOMY & POLICY

Rajasthan issues EV Policy 2021 to boost electric two-wheeler sales

The Rajasthan government has issued the Rajasthan Electric Vehicle Policy, 2021 and has become the newest state to follow Delhi, Goa, Gujarat, West Bengal and Maharashtra.

The policy is focused on improving sales of electric two-wheelers (E2W) and electric three-wheelers (E3W), also called e-rickshaws, in the state.

As per the state’s transport department, the government will compensate State Goods and Services Tax (SGST) on the electric vehicles (EV) sales in Rajasthan. The SGST compensation would depend on the SGST amount specified in the bill of sale. The policy also provides subsidies to E2W and E3W depending on their battery capacity.

The subsidy is valid from April 1, 2021, until March 31, 2022, on all listed E2Ws and E3Ws in Rajasthan.

On closer investigation, it is obvious that the subsidies provided by Rajasthan are much lesser than those proposed by states like Gujarat.

The Gujarat EV Policy provides a subsidy of Rs 20,000 for E2W that values up to Rs 150,000, Rs 50,000 subsidy for E3W that values up to Rs 500,000, and Rs 1,50,000 subsidy for electric cars that values up to Rs 1.5 million.

No subsidies were provided to buy electric cars and electric buses in Rajasthan, and there is no mention of EV charging infrastructure either.

In October 2019, the Rajasthan State Road Transport Corporation (RSRTC) had declared a request for proposal (RFP) to choose bus operators for the acquisition, operation, and maintenance of 50 air-conditioned electric-powered buses under the phase II of Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India (FAME II) program.

In June, the Department of Heavy Industries had declared partial reformations to the FAME-II program. Instead of a uniform demand incentive of Rs 10000 per KWh for all vehicles, a particular demand incentive of Rs 15,000 per kWh for E2Ws has now been declared.

Many states have declared EV policies since last year. The recent policy declared was by Gujarat, striving to introduce 200,000 EVs on Gujarat’s roads in the subsequent four years. These would incorporate 110,000 E2Ws, 70,000 e-rickshaws, and 20,000 electric cars.

Goa and Maharashtra have declared draft EV policies. While Maharashtra strives for at least 25% of the urban fleet managed by fleet aggregators or operators in the state to shift to EVs by 2025, Goa has declared that all commercial two-wheelers running in the state shift to electric by December 31, 2025.

Image Source


Also read: Kochi Metro floats tender for e-auto services

Also read: Convergence Energy issues EOI for electric three wheelers in India

The Rajasthan government has issued the Rajasthan Electric Vehicle Policy, 2021 and has become the newest state to follow Delhi, Goa, Gujarat, West Bengal and Maharashtra. The policy is focused on improving sales of electric two-wheelers (E2W) and electric three-wheelers (E3W), also called e-rickshaws, in the state. As per the state’s transport department, the government will compensate State Goods and Services Tax (SGST) on the electric vehicles (EV) sales in Rajasthan. The SGST compensation would depend on the SGST amount specified in the bill of sale. The policy also provides subsidies to E2W and E3W depending on their battery capacity. The subsidy is valid from April 1, 2021, until March 31, 2022, on all listed E2Ws and E3Ws in Rajasthan. On closer investigation, it is obvious that the subsidies provided by Rajasthan are much lesser than those proposed by states like Gujarat. The Gujarat EV Policy provides a subsidy of Rs 20,000 for E2W that values up to Rs 150,000, Rs 50,000 subsidy for E3W that values up to Rs 500,000, and Rs 1,50,000 subsidy for electric cars that values up to Rs 1.5 million. No subsidies were provided to buy electric cars and electric buses in Rajasthan, and there is no mention of EV charging infrastructure either. In October 2019, the Rajasthan State Road Transport Corporation (RSRTC) had declared a request for proposal (RFP) to choose bus operators for the acquisition, operation, and maintenance of 50 air-conditioned electric-powered buses under the phase II of Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India (FAME II) program. In June, the Department of Heavy Industries had declared partial reformations to the FAME-II program. Instead of a uniform demand incentive of Rs 10000 per KWh for all vehicles, a particular demand incentive of Rs 15,000 per kWh for E2Ws has now been declared. Many states have declared EV policies since last year. The recent policy declared was by Gujarat, striving to introduce 200,000 EVs on Gujarat’s roads in the subsequent four years. These would incorporate 110,000 E2Ws, 70,000 e-rickshaws, and 20,000 electric cars. Goa and Maharashtra have declared draft EV policies. While Maharashtra strives for at least 25% of the urban fleet managed by fleet aggregators or operators in the state to shift to EVs by 2025, Goa has declared that all commercial two-wheelers running in the state shift to electric by December 31, 2025. Image Source Also read: Kochi Metro floats tender for e-auto services Also read: Convergence Energy issues EOI for electric three wheelers in India

Next Story
Infrastructure Urban

Mount Invests Rs 250 Cr, Adds PUF & PEB Plants, 400+ Jobs

TUMKUR, Karnataka, January 8, 2025 - Mount Roofing & Structures Private Limited, one of India's  fastest-growing manufacturers in PUF and a leading solutions provider across Pre-Engineered Building  (PEB) and Polycarbonate sheets, simultaneously inaugurated its second fully automated continuous  Sandwich Panel manufacturing line and a new PEB manufacturing plant at its integrated campus in  Tumkur." The milestone expansion, part of a total investment of INR 250 crores, marks a significant  advancement in the company's commitment to engineered performance, manu..

Next Story
Infrastructure Urban

Titan Intech Strengthens UltraLED Push With Global LED Veteran

Titan Intech has announced the induction of global LED industry veteran Su Piow Ko to its Board of Directors, marking a strategic step in strengthening its UltraLED Displays roadmap and building globally competitive LED display solutions from India.The appointment aligns with Titan Intech’s ambition to position India as a hub for advanced, high-quality LED display manufacturing. With an increased focus on UltraLED Displays, the company aims to enhance technical governance, raise manufacturing standards and expand its presence across global markets.Su Piow Ko brings over three decades of inte..

Next Story
Infrastructure Urban

Dun & Bradstreet Flags New Growth Engines in India 2026 Outlook

Dun & Bradstreet has released its India 2026: D&B’s Perspective report, projecting a stable macroeconomic environment underpinned by fresh opportunities for productivity-led and inclusive growth. The report outlines how India’s next growth phase will be driven by digitised logistics, trusted data ecosystems, clean energy and rising city vitality.According to the outlook, India’s GDP growth is expected to reach around 6.6 per cent by FY2027, supported by resilient consumer demand and sustained public investment. Manufacturing is seen entering a new phase, moving beyond scale towar..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App