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Old 16th February 2018, 18:19   #1
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Default Maharashtra government announces 15% subsidy on EVs

The Government of Maharashtra has announced new incentives in a bid to promote manufacturing and sales of electric vehicles (EV) in the state.

Maharashtra government announces 15% subsidy on EVs-tigor-ev.jpg

As part of the new policy, EV buyers will receive a subsidy of 15% on the total price of the vehicle from the state. Besides this, the government had already announced that EVs will be exempt from road tax and registration fees. This is expected bring down the cost of owning an EV considerably.

The government has also laid down a policy to set up a charging infrastructure in the state. The first 250 charging stations will get capital subsidy of 25% with a maximum limit of Rs. 10 lakh per charging station. In all, the government plans to spend Rs. 2,800 crore on setting up charging infrastructure in the state over the next 10 years.

The state government has also announced that the electricity used for charging EVs will be charged at residential rates, which will be considerably cheaper than commercial rates.

The Government of Maharashtra is hoping that the policy will attract fresh investments of Rs. 25,000 crore. It also hopes to create 1 lakh jobs over the next 5 years.

Source: Hindustan Times

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Old 16th February 2018, 18:38   #2
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Default Re: Maharashtra government announces 15% subsidy on EVs

Bang On! I always use to think why no government is taking the EV's as business opportunity. Maharashtra government made a good decision and hope others get confidence to make decision. This move from Maharashtra will certainly invoke many new entrepreneurs. No business has a definitive plan. Step in, you will learn how to deal with it. This is the best example how the government should start generating revenues and generate more jobs for youngsters.
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Old 16th February 2018, 18:58   #3
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Default Re: Maharashtra government announces 15% subsidy on EVs

The 15 % tax subsidy will offset the 12 % GST that the central govt charges. Also, the central govt needs to reduce the 28 % GST on batteries (or specifically for batteries used in hybrid or full EVs).

The waiver of road tax and registration fees is a welcome move. Might spur other states to consider the same policies.
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Old 16th February 2018, 19:01   #4
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Default Re: Maharashtra government announces 15% subsidy on EVs

I would wait to see exact wordings of the notification. If subsidy is of net sale price, then this might lead to massive drain on state coffers as importing a Tesla will suddenly start making sense instead of going for 1cr+ bracket considering road tax and registration is also exempt.

Also, I think with above mentioned subsidies, e20 in Mumbai might come under 7 lakh bracket.

Last edited by Muski : 16th February 2018 at 19:10. Reason: I
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Old 19th February 2018, 09:57   #5
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Default Re: Maharashtra government announces 15% subsidy on EVs

Quote:
Originally Posted by bugatti View Post
The 15 % tax subsidy will offset the 12 % GST that the central govt charges. Also, the central govt needs to reduce the 28 % GST on batteries (or specifically for batteries used in hybrid or full EVs).
The 28% GST on Batteries is inconcequential issue. The electric car manufacturer gets a full setoff on his purchases, and finally pays only 12% on the cost of the car. The setoff is for all purchases of the company, and not against that utilised for that product only, so the manufacturer will think of only the basic pretax price of each component.
Secondly the batteries will be having a rental policy too, and rental now attracts 18% GST. If some one opts for rental of batteries for their E2o the charges are Rs 2540+18% =2540+457=2997.

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Originally Posted by bugatti View Post
The waiver of road tax and registration fees is a welcome move. Might spur other states to consider the same policies.
This was first started by KA. no road tax on EV's MH is actually second state to do so.

Rahul
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Old 19th February 2018, 10:16   #6
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Default Re: Maharashtra government announces 15% subsidy on EVs

Quote:
Originally Posted by TusharK View Post
The Government of Maharashtra has announced new incentives in a bid to promote manufacturing and sales of electric vehicles (EV) in the state.

As part of the new policy, EV buyers will receive a subsidy of 15% on the total price of the vehicle from the state. Besides this, the government had already announced that EVs will be exempt from road tax and registration fees. This is expected bring down the cost of owning an EV considerably.
Wow. This is after a long time that you see the MH Govt. being proactive/business friendly.

Announcements and reality are unfortunately, very different. Two things though:

1) Apart from Mumbai, there's a noticeable electricity shortage in the state. This will not be a problem now but if EVs get really popular, where do you get the additional electricity from?
2) Financially, MH is in doldrums. So, tax on what commodity will go up to pay for this subsidy? Fuel?
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Old 19th February 2018, 14:18   #7
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Default Re: Maharashtra government announces 15% subsidy on EVs

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Originally Posted by libranof1987 View Post
1) Apart from Mumbai, there's a noticeable electricity shortage in the state. This will not be a problem now but if EVs get really popular, where do you get the additional electricity from?
The thing will electricity is that, most of the time the grid is running part capacity. You can charge a fair number of EVs in the night before the grid needs any kind of upgradation. This can be easily achieved by Time of Day billing.
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Old 19th February 2018, 17:02   #8
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Default Re: Maharashtra government announces 15% subsidy on EVs

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Originally Posted by sreeharipv View Post
The thing will electricity is that, most of the time the grid is running part capacity. You can charge a fair number of EVs in the night before the grid needs any kind of upgradation. This can be easily achieved by Time of Day billing.
There is a slightly more detailed discussion about the eco-system that could fuel EVs in today's Mint column by Rahul Tongia

What will fuel India’s electric vehicles
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Old 22nd February 2018, 13:01   #9
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Default Re: Maharashtra government announces 15% subsidy on EVs

Any clue how one can apply for one of those 250 charging stations
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Old 7th June 2018, 20:07   #10
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Default Re: Maharashtra government announces 15% subsidy on EVs

The Maharashtra State Electricity Distribution Corporation is demanding for separate tariff rates for charging electric vehicles.

Maharashtra State Electricity Distribution Corporation (MSEDCL) stations at present will charge customers commercial electricity tariff, according to the Maharashtra Electricity Regulatory Commission (MERC) November 1st, 2016 guidelines, which state:

The commission has categorized the electrical charging centres of hybrid vehicles under the commercial category. The following qualification may be added — electricity charging centres of hybrid vehicles and allied activities. However, in case the consumer uses the electricity for charging his own vehicle on his premises, the tariff shall be as per the parent category of supply.

A petition will be filed to the MERC, which will decide the separate tariff rates for electric vehicles. This will motivate more people to use these vehicles,” an MSEDCL official said.

Quote:
The state government’s initiative to launch charging stations for electric vehicles across Maharashtra has picked up pace. With plans to develop 500 such stations across the state and the tender process being completed for 50 stations, the officials stressed there was a need for separate prices for charging electric vehicles.
The MSEDCL is set to commission the city’s first electric vehicle charging station ‘PowerUP’ in Balewadi this week as it starts work on the development of the second station in Shivajinagar. It will be commissioned by mid-June.
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