Electric vehicles to get upto Rs 2.75 lakh incentive in Maharashtra

Electric vehicles to get upto Rs 2.75 lakh incentive in Maharashtra

13th Jul 2021 9:15 pm

Maharashtra's new aggressive policy provides incentives up to Rs 44,000 for electric two wheelers; targets 3 lakh EV registrations every year by 2025.


The Maharashtra government today unveiled a comprehensive EV Policy for 2021, which has been designed to accelerate both adoption of electric vehicles (EVs) in the state as well as make Maharashtra a leading manufacturing and investment hub for the EV ecosystem globally. The overarching aim is for EVs to contribute to 10 percent of new vehicle registrations – or 3,00,000 EVs – a year by 2025.

  • Three direct incentives for demand, supply and charging infrastructure
  • Includes non-fiscal incentives for developing skilled manpower
  • Aims to make Maharashtra a hub for the EV ecosystem globally

Maharashtra's EV Policy 

As per the policy, the Maharashtra government will offer basic as well as early bird incentives on the purchase of electric two-wheelers, three-wheelers and four-wheelers. This includes an incentive of Rs 5,000 per kWh of the vehicle battery capacity. For two-wheelers and three-wheelers, the maximum incentive has been capped at Rs 10,000 and Rs 30,000, respectively. Meanwhile, for four-wheelers the maximum incentive is capped at Rs 1.50 lakh. Buyers will also be eligible for early bird incentives (on purchase of vehicle before 31st December, 2021) and several other benefits, as has been detailed in the table below.

Maharashtra EV policy incentives
Vehicle typeBattery Capacity (kWh)Basic Incentives Early Bird Incentives Assured buyback & Battery warranty Incentives Scrappage Incentives Total Incentives
Electric two-wheelers (before December 31, 2021) 3Rs 10,000Rs 15,000Rs 12,000Rs 7,000Rs 44,000
Electric two-wheelers (after December 31, 2021) 3Rs 10,000NARs 12,000Rs 7,000Rs 29,000
Electric three-wheelers (before December 31, 2021) 7Rs 30,000Rs 35,000Rs 12,000Rs 15,000Rs 92,000
Electric three-wheelers (after December 31, 2021) 7Rs 30,000NARs 12,000Rs 15,000Rs 57,000
Electric four-wheelers (before December 31, 2021) 30Rs 1,50,000Rs 1,00,000NA Rs 25,000Rs, 2,75,000
Electric four-wheelers (after December 31, 2021) 30Rs 1,00,000NANA Rs 25,000Rs 1,75,000

Accelerating adaptation of EVs

Along with the earlier-mentioned target of 10 percent of new vehicles sales to be EVs, Maharashtra is targeting six urban cities (Mumbai, Pune, Nagpur, Aurangabad, Amravati and Nashik) to achieve 25 percent electrification of public transport and last-mile delivery vehicles by 2025. Also from April 2022, all new government vehicles in Maharashtra will be EVs.

The EV policy indicates the state government’s plan to fast-track and ensure time-bound registration of EVs, including EV fleets owned by aggregators, last mile delivery providers, logistics players, etc. The policy will encourage fleet aggregators to operate electric vehicles, as per the Motor Vehicle Aggregator Guideline 2020 issued by Ministry of Road Transport and Highways.

Greater focus on charging infrastructure

The state government also plans to aggressively develop EV charging infrastructure, estimated at around 2,500 charging stations, in 7 major urban agglomerates (Mumbai, Pune, Nagpur, Aurangabad, Nashik, Amravati and Solapur) and 4 major highways (Mumbai -Pune, Mumbai - Nashik, Mumbai - Nagpur and Pune - Nashik).

While slow chargers (15,000 units) will get incentives up to Rs 10,000 per charger, fast chargers (500 units) will be incentivised up to Rs 5,00,000 per charger. The government document states that “urban local bodies will be encouraged to provide property tax rebates to residential owners for installing private charging infrastructure within their premises.” ULBs/PWD/ MSRDC will identify locations for charging infrastructure installation.

The proposed incentives are in addition to FAME Il incentives and will be awarded to vehicle manufacturers based on the number of vehicles registered in Maharashtra.

Benefits for EV manufacturers in Maharashtra

The EV Policy documents says that "all the benefits under 'D+' category of mega projects will be provided to these industries irrespective of location of manufacturing unit in the state. This incentive will be applicable from the date of notification of policy and will be disbursed through the Industries, Energy and Labour Department”.

Policy Implementation

The state government is instituting a Mechanism Steering Committee under the chairmanship of Chief Secretary and other concerned department principal secretaries, who will assess the policy effectiveness and revise the policy, considering the EV ecosystem and environment. There will be a Climate Change Department which will drive the 'EV Monitoring Cell’.

Also See:

Green 2 Green Drive: Tata Nexon EV on safari in Satpura

Delhi government notifies EV policy

Electric two-wheelers now more affordable due to FAME II revision

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