State-level Policies That are Promoting EV Transition

Around 16 states in India have finalized policies to encourage electric vehicle penetration

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After a lull of two years due to the pandemic, India's electric vehicle (EV) is again making noise. Even though on one hand, we are seeing many unfortunate fire incidents being reported, we are also seeing new products and announcements being made. For instance, last week, NITI Aayog and Technology Information, Forecasting and Assessment Council (TIFAC) released a report which forecasts 100 per cent penetration of electric two-wheelers in the Indian market by FY2026-27. We also saw Ola Electric, unveiling its indigenously manufactured lithium-ion cell, NMC 2170.


Even though the fire incidents have become a cause of worry, experts believe that EV adoption started to gather momentum again. The NITI Aayog report also spoke about the performance of various states in improving the climate and energy sector. It said that Tripura scored a perfect 100 on State Energy and Climate Index (SECI) parameters for EV penetration.

Around 16 states have finalized EV policies. These include Andhra Pradesh, Karnataka, Kerala, Madhya Pradesh, Maharashtra, New Delhi, Tamil Nadu, Telangana, Uttarakhand, Uttar Pradesh, Goa, Gujarat, Meghalaya, Assam, West Bengal, Odisha, and Rajasthan. Here is a look at policies formulated by five of these states last year.


Aiming for the adoption of EVs in Delhi, the Council of Ministers, Government of National Capital Territory of Delhi (GNCTD) has approved the Delhi Electric Vehicle Policy 2020. This policy seeks to create a comprehensive set of measures to encourage the purchase and use of electric two-wheelers. It also supports the electrification of public/shared transport and goods carriers. It also says that registered owners of electric two-wheelers will be eligible for incentives for scrapping and de-registration of old ICE two-wheelers that are registered in Delhi.


The 2021 policy aims to see 2 lakh electric vehicles on the roads of Gujarat in 4 years. The incentives are offered for all types of EVs. They are based on battery capacity and the starting price for availing subsidy for each vehicle segment will be as per the FAME II Scheme of the Government of India. Incentives are also being given for charging infrastructure, which is one of the crucial elements in EV transition. The policy says that commercial public EV charging stations for 2-wheelers, 3-wheelers, 4 wheelers will be eligible for 25 per cent capital subsidy on equipment/machinery limited up to INR 10 lakhs per station for the first 250 commercial public EV charging stations.


Through the policy, the Assam government focuses on charging infrastructure of different capacities and technologies. It promotes many business models including z. Privately-owned, DISCOM-owned, and Investor-owned charging and battery swapping stations for the same. Further, the demand incentive will be over and above any subsidies that are available from the Central Government through its promotional schemes and policies. And, like other states, the incentives for all types of electric vehicles Will be based on the electric vehicle battery capacity.


The policy aims to become a model of international standards for electric vehicle adoption in the passenger and commercial sectors. It targets that 30 per cent of annual vehicles registered in Goa, starting from 2025, will be electric. It also aims to convert 50 per cent of all ferries to electric by 2025, create 10,000 direct and indirect jobs in the sector and encourage startups and investment in the field of electric mobility and associated sectors.


The state policy aims to facilitate the adoption of at least 15 per cent EVs in the State by 2025. It aims to support EV transition by providing purchase incentives for early adoption of EVs based on the energy capacity in kWh of battery. It also plans to support the setting up of infrastructure for EVs such as power supply, charging points network and service centers.