Ministry of Road Transport and Highways said it has issue a notification to exempt battery-operated vehicles from the payment of fees for issue or renewal of registration certificate.
The MoRTH said it has also exempt battery-operated vehicles from the payment of fees for the assignment of new registration marks.
This has done to notified to encourage e-mobility.
The initial cost of owning an electric vehicle is higher than the conventional automobiles Infrastructure is one issue that is further suppressing the sales of EVs in India.
Electric Vehicles are relatively new in terms of technology and any new thing takes time to penetrate in society
Government in India is working aggressively to put out a credible infrastructure for electric vehicles, technology is also fast-evolving and the EVs of today are to an IC-engine vehicle with the same creature comfort, same driving dynamics and hat not.
EVs are not at all pocket friendly as compared to conventional petrol/ diesel vehicles, at least when it comes to the initial cost of ownership.
You might argue the overall lifetime cost of EVs is less than a petrol car but we don’t compare prices when we buy any new thinking what will happen 10 years down the line.
These incentives vary depending on which Indian state you live in.
FAME II by Central Government
FAME is a policy by the Department of Heavy Industries and is an acronym for Faster Adoption and Manufacturing of Hybrid and Electric vehicles.
Initially it was FAME and then in 2019 then it was updated as FAME-II.
These incentives are over and above the state incentives and are applicable throughout India.
- For two-wheelers the Rs 15,000 per kWh of battery capacity (Maximum up to 40% of the vehicle cost)
- For four-wheelers the Rs 10,000 per kWh of battery capacity (Maximum up to Rs 1.5 lakh)
There are schemes by the Ministry of Finance to ease the burden of owning an EV.
These schemes are not under FAME II.
- All EVs are currently subject to a lower rate of the Goods and Services Tax (GST) at 5%
- First-time buyers can take a loan and get tax benefits of up to Rs 1.5 lakh under Section 80EEB of the Income Tax Act.
The Incentives by Various State Governments.
Delhi
Delhi was among the first few states to announce a comprehensive EV policy.
Delhi is also the state with a maximum density of EVs per square kilometre.
- For two-wheelers the Rs 5,000 per kWh of battery capacity (Maximum up to Rs 30,000) + scrappage benefits up to Rs 5,000
- For four-wheelers the Rs 10,000 per kWh of battery capacity (Maximum up to Rs 1.5 lakh)
- For three-wheelers the rickshaws and freight carriers Benefits up to Rs 30,000
- The state government has waived off the registration fees and road tax on all types of electric vehicles
Gujarat
Gujarat announce their 2021 EV policy which makes it the state offering a higher per-kWh subsidy for EVs.
- For two-wheelers the Rs 10,000 per kWh of battery capacity (Maximum up to Rs 20,000)
- For four-wheelers the Rs 10,000 per kWh of battery capacity (Maximum up to Rs 1.5 lakh)
- For three-wheelers and rickshaws Rs 50,000
- Registration and road tax exemption on all vehicles.
Maharashtra
Maharashtra revised its EV policy and now offers some hefty benefits for owning an EV especially some early-bird discounts to limited buyers.
Also Maharashtra is offers a direct subsidy of Rs 1.5 Lakh on the first 10,000 electric cars to be registered under this policy until 2023.
- For two-wheelers the Rs 10,000 per KwH + Rs 15,000 early bird incentive + Rs 7,000 scrappage + Rs 12,000 other incentives
- For four-wheelers the Rs 1.50 lakh total discount + Rs 25,000 scrappage + Rs 1.5 lakh early bird incentive
- For three-wheelers and rickshaws Up to Rs 30,000
- Registration and road tax exemption on all-electric vehicles.
Rajasthan
Rajasthan is the latest state to announce its EV policy which is different from other states.
No direct benefit will be given to the buyer on purchase but a benefit against State Goods and Sevice Tax will be provided (SGST).
As per the state government’s Transport Department :
Government will reimburse SGST (State Goods and Service Tax) amount on purchase on an EV. A lump sum grant amount will be payable on all electric two- and three-wheelers, as per their battery capacity and this grant amount is payable on vehicles purchased from April 1, 2021 to March 31, 2022 and registered till March 2022.
- For two-wheelers the Rs 5,000 for battery capacity upto Rs 2 kWH and upto Rs 10,000 for battery capacity more than 5 Kwh
- For three wheeler the Rs 10,000 for battery capacity less than 3 kwH and upto Rs 20,000 with more than 5 kWH battery capacity.
Meghalaya
Meghalaya also announce its EV policy in 2021 and has set a quota for number of vehicles applicable under the scheme.
Meghalaya is the only state to expedite the RTO paperwork of EVs.
- For two-wheelers the Rs 10,000 per kWh of battery capacity
- For cars the Rs 4,000 per kWh of battery capacity
- Registration and road tax exemption for all EVs.
Karnataka
Karnataka offers no direct subsidy to EV owners but is offering full exemption from road tax and registration fees for electric vehicles.
Andhra Pradesh
Andhra Pradesh offers exemption from registration fees and road taxes in the state to all electric vehicles.
Telangana
Telangana grants registration fee and road tax exemption for all electric vehicles.
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