Rajasthan sanctions Rs. 40 Crore as EV Purchase Grant

The Rajasthan government implemented a new electric vehicle policy offering financial incentives to EV buyers in the state. Under the new Rajasthan Electric Vehicle Policy (REVP), the government has approved Rs 40 crore as the total contribution on the purchase of electric vehicles.

The policy will aim to encourage the adoption of electric vehicles in the state and will be effective for five years. With the increase of electric vehicles, pollution caused by diesel and petrol vehicles in the state will come down.

Chief Minister Ashok Gehlot announced the policy in the budget 2019-20. Later, the draft policy was approved in May this year. Under this, the government approved the proposed one-time contribution on the purchase of electric vehicles and an additional budget provision of Rs 40 crore for reimbursement of State Goods and Services Tax (SGST).

The state government would compensate SGST amount of Rs 5,000 to Rs 10,000 for two-wheelers. For the purchase of three-wheelers, Rs 10,000 to Rs 20,000 will be reimbursed based on the battery capacity of the vehicle.

At the same time, the transport department has received a sum of Rs 40 crore to clear the pending cases of grant on the purchase of electric vehicles. Of Rs 40 crore, a grant amount of Rs 5 crore is to be disbursed to 3,000 vehicle owners (who purchased vehicles in the current fiscal year) in the state, which will be done soon.