Goa To Offer Subsidy For 11,000 Electric Vehicles Annually For Next 5 Years

Goa, which recently released a draft scheme to promote electric vehicles in the state, will offer subsidies on 11,000 EVs for the next five years. The coastal state aims for 30 per cent of its total vehicle registrations to be electric vehicles by 2025. To that effect, the state government plans to subsidise 10,000 electric two-wheelers, 500 electric three-wheelers and around 500 electric four-wheelers. For two-wheelers, the subsidy amount will not exceed Rs. 10 crore per year, for three-wheelers it has been capped at Rs. 1 crore, and for four-wheelers, the limit is Rs. 14 crore. Overall, the annual subsidy on electric vehicles will not exceed Rs. 25 crore.

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Reportedly, a senior official of the state government has said that the subsidy will be given on a first come first serve basis. The incentive for electric two-wheelers and electric three-wheelers has been capped at Rs. 30,000 per vehicle, while the maximum incentive to be offered on an electric four-wheeler will be up to Rs. 1.5 lakh per vehicle. The subsidy will be disbursed in a single instalment that is 100 per cent on the purchase of the vehicle. The owner will only need to produce the documents of purchase, including the RC book and insurance.

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Goa plans to subsidise 10,000 electric two-wheelers, with the amount not exceeding Rs. 10 crore per year

The draft scheme also says that in case the battery is not sold with the vehicle 50 per cent of the Purchase Incentive shall be provided to the vehicle owner. The remaining amount of up to 50 per cent would be provided to Energy Operators for defraying the cost of any deposit that may be required from the end-users for use of a swappable battery.

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The central government previously had a target, under the National Electric Mobility Plan (NEMPP), to have six to seven million electric and hybrid vehicles on Indian roads by 2020. And it was towards that goal that the Faster Adoption and Manufacturing of Hybrid and Electric vehicles (FAME) scheme has been launched by the Department of Heavy Industries, Government of India. In fact, the key reasons behind the launch of the FAME scheme were for saving 120 million barrels of oil, reduce 4 million tons of CO2 and lowering vehicular emissions by 1.3 per cent by 2020.

The key reasons behind the launch of the FAME scheme were for saving 120 million barrels of oil, reduce 4 million tons of CO2 and lowering vehicular emissions by 1.3 per cent by 2020

However, because electric vehicles in India are generally more expensive than internal combustion vehicles, almost about 50 per cent more, the target was not achieved. The official has told TOI that this new initiative is also aimed at achieving the targets. Among other objectives the Goa government also wants to convert 50 per cent of all ferries to electric by 2025, create 10,000 direct and indirect jobs in the sector by 2025, and a target induction of 500 pure electric buses by 2025.

Furthermore, all two-wheelers involved in commercial activity operating in Goa shall switch to complete electric by December 31, 2025. For beyond December 31, 2030, all the two-wheelers sold in the state of Goa to be 100 per cent electric. However, the existing registered ICE vehicles shall be allowed to operate until their end of life.

Source: ET Auto