Rajasthan implements new EV policy, sanction Rs. 40 crore as EV purchase subsidy

The Rajasthan government on Thursday rolled out a new electric vehicle policy offering financial incentives to EV buyers in the state. Under the new Rajasthan Electric Vehicle Policy (REVP), the government has allocated Rs. 40 crore as total contribution on purchase of electric vehicles. The policy, which aims to encourage adoption of electric vehicles in the state, will be effective for five years from today (September 1). Chief Minister Ashok Gehlot announced the EV policy in the 2019-20 budget.

The state government issued a notification for the implementation of the Rajasthan Electric Vehicle Policy (REVP), PTI reported quoting an official from the transport department. The EV policy will be effective for five years from today. It is reported that the state government has sanctioned a fund of Rs 50 crore for this. 40 crore for contribution towards purchase of EVs.

Chief Minister Ashok Gehlot had earlier announced the policy in the Budget 2019-20. Later the draft policy was approved on 24 May. The government has approved a one-time contribution for the purchase of electric vehicles and an additional budget provision of Rs. 40 crore for State Goods and Services Tax (SGST).

To encourage the purchase of EVs, the state government will reimburse SGST amount. 5,000 to Rs. 10,000 for two-wheelers. For purchase of three wheelers Rs. 10,000 to Rs. 20,000 will be reimbursed based on the battery capacity of the vehicle.

Meanwhile, it is reported that the transport department has received Rs. 40 crore to clear all pending dues related to purchase of electric vehicles.