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Maharashtra launches new EV Policy 2021

Maharashtra launches new EV Policy 2021

  • The new EV policy aims to make Maharashtra the top producer of Battery Electric Vehicles in India in terms of annual production capacity
  • It also aims for electric vehicles to make up 10 percent of all new vehicle registrations (around three lakh vehicles a year) in the state by 2025.
  • State government has pledged Rs 930 crore towards this policy valid till March 31, 2025, and announced EVs will be exempt from road tax and registration charges.

Implementation aspects:

  • State government is instituting a Mechanism Steering Committee under the chairmanship of Chief Secretary & other concerned principal secretaries.
  • Chief Secretary & other secretaries will evaluate policy effectiveness to amend it, according to the EV ecosystem and environment.
  • A Climate Change Department (CCD) will drive the ‘EV Monitoring Cell.’

EV charging infrastructure:

  • The state government will set up EV charging infrastructure at around 2,500 charging stations, in:
  1. Seven major urban clusters (Mumbai, Pune, Nagpur, Aurangabad, Nashik, Amravati & Solapur) and
  2. Four major highways (Mumbai -Pune, Mumbai – Nashik, Mumbai – Nagpur and Pune – Nashik).
  • Further, government will encourage urban local bodies to provide property tax rebates to residential owners for installing private charging infrastructure within their premises.

Incentives

  • Incentives will be given under new EV policy to buyers of electric vehicles as follows:
  1. Two-wheelers: Rs. 10,000
  2. Three-wheeler: Rs. 30,000
  3. Four-wheeler: Rs. 1,50,000 and
  4. Rs. 20 lakh incentive for e-buses.
  • The policy also aims to create a ‘State EV Fund’ which will be used to promote EV adoption including providing incentives for EV infrastructure.
  • The policy can be funded through a green tax levied on re-registration of old vehicles, fuel cess etc.

FAME Scheme:

  • FAME (Faster Adoption & Manufacturing of Electric Vehicles) scheme was announced in 2019 to incentivize the purchase of E-vehicles in the country.
  • It was announced with an outlay of ₹10,000 crore to incentivize the purchase of electric buses, four-wheelers, three-wheelers and two-wheelers.
  • Recently, Union government announced the extension of the second phase of FAME scheme by two years, until March 31, 2024.

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