Maharashtra follows Goa, withdraws EV subsidies

In an attempt to increase the rate of electric vehicle penetration in the country, the central government along with various state governments introduced subsidies for EVs. However as the number of EVs on the road has reached a sufficient figure along with increased momentum of sales, some state governments have started to end those subsidies.

Maharashtra follows Goa, withdraws EV subsidies

The most recent one of state governments to take this step is the government of Maharashtra. Recently through dealer sources, it was revealed that the Maharashtra government has withdrawn subsidies on two-wheeled electric vehicles.

Back in July 2021 the state government of Maharashtra implemented the EV subsidy programme. And through these the early bird benefits were originally intended to last till December 31, 2021, however, they were extended till March 31, 2022. The subsidy was intended for the first 100,000 electric two-wheelers, with advantages of Rs 5,000 per kWh of battery capacity up to a maximum of Rs 10,000. There was also a Rs 15,000 early bird incentive for EVs with a 3kWh battery.

As of yet, sources have reported that the subsidies have ended for electric two-wheelers but there is no information regarding the subsidies for electric four-wheelers. This although does not imply that the central government’s FAME II subsidy has ended. The FAME II subsidy can still be availed.

Earlier this month it was also notified that the Goa government’s Department of New & Renewable Energy announced that it will no longer provide subsidies for electric cars (EVs) in the state with effect from 31 July 2022. Goa became the first state in the nation to stop providing incentives for EVs.

The state government of Goa announced the Electric Mobility Policy in December of 2021 in order to further encourage the use of electric vehicles (EVs), such as electric motorcycles, scooters, three-wheelers, and four-wheelers for daily commuting. And under the policy, the maximum value of the subsidy was Rs 30,000 for two-wheelers, Rs 60,000 for three-wheelers, and Rs 3 lakh for four-wheelers that are powered by electricity. However, the subsidiary was always available for a limited number of vehicles in the state.

At the time the Department of New & Renewable Energy said the subsidy would be available to a maximum of 3,000 electric two-wheelers, 50 electric three-wheelers, and 300 electric four-wheelers. Furthermore, it was recently announced that applications from individuals who are qualified, i.e., who have purchased the car between 16 December 2021 and 31 July 2022, will still be allowed until July 31 in order to prevent a rush of EV buyers claiming the subsidy. That was a low target number, and perhaps it has been achieved and that was why the decision to stop the subsidies was taken. We think there is a possibility that the subsidy would be back in some form or the other soon.