Gujarat Government Announce New EV Policy 2021

Electric Vehicle (EVs) will now be available at the cheapest price in Gujarat in the whole of country
  • Published On: 24/06/21
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Gujarat Government

News Highlights

  • The Gujarat EV Policy comes with subsidies worth Rs 870 Crores
  • It offers a subsidy of Rs 10,000 per kwh of the vehicle battery
  • Charging stations are fully exempted from electricity duty

The Gujarat state government has announced the new Electric Vehicle (EV) Policy 2021. It comes with subsidies worth Rs 870 Crores on the purchase of electric vehicles in the state. The 2021 EV Policy also includes a subsidy on setting up of charging infrastructure in the state to promote the sales of EVs. Recently, the Union government had also introduced the FAME II scheme with several benefits. The state government aims to have over 2 Lakh electric vehicles (EVs) plying in Gujarat with nearly 1.10 Lakh two-wheelers, 70,000 three-wheelers and 20,000 four-wheelers in the coming four years.

The 2021 EV Policy provides a subsidy of Rs 10,000 per kwh of the vehicle. The maximum subsidy on the purchase of an electric two-wheeler is Rs 20,000 while it is capped at Rs 50,000 for the three-wheelers followed by the four-wheelers which will enjoy the highest subsidy of Rs 1.50 Lakh. The subsidy amount will be directly credited in the back account of the beneficiaries via DBT scheme. “The new EV Policy will boost the adoption of EVs in the state and will contribute to the creation of jobs in the EV sector. The core aim of the policy is to popularise the adoption of EVs in the country and to turn Gujarat into a hub of EV production, reduce pollution and encourage startups and bring investors in the field of e-mobility,” said Vijay Rupani, Chief Minister, Gujarat.


Additionally, all the electric vehicles - be it private or commercial - approved by the Gujarat RTO will get exemption from registration fees. The benefits and subsidies announced in the EV Policy 2021 by the Gujarat government will be offered alongside the benefits of the FAME-II scheme of the Union government. "The EV Policy 2021 also includes incentives for setting up EV charging infrastructure. The State administration aims to add 250 more stations along with the existing approval for 278 charging stations. It will also provide 25 percent capital subsidy up to a limit of Rs 10 Lakhs for the same," added Rupani. The housing societies and commercial establishments have been directed to provide NOC to anyone who intends to install a charging station while it will be fully exempted from electricity duty.


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Mayank Gupta
Author Mayank Gupta

A mechanical engineering dropout by choice, Mayank has been in the auto journalism biz for the past 8 years. He is currently working as an Associate Editor at Droom Discovery and covering each and every aspect of the auto industry. He has worked with a plethora of renowned Auto brands in his illustrious career so far. Being a student of English Literature, his mantras of success are the Never-Say-Never attitude and self-confidence. Mayank likes to travel, read books and listen to music during his free time.

  • Published On: 24/06/21
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