Despite Karnataka being the hub for electric vehicle (EV) manufacturers which have launched an overwhelming number of battery-powered two-wheelers, and the first state to implement an e-vehicle policy in 2017, buyers in the state are not very fortunate in receiving any government subsidies on the purchase of EVs.
In Karnataka, EV consumers receive simply a road tax exemption and no registration charge. However, many other states and union territories provide financial incentives in addition to road tax exemptions for electric two-wheelers.
With a maximum subsidy of Rs 30,000, Delhi tops the list, followed by Maharashtra which grants up to Rs 25,000. In Meghalaya, Bihar, Assam, West Bengal, and Gujarat, the cap is Rs 20,000.
According to insiders, the industries department is pressing for customer incentives, but because of a budget shortage, the finance department is opposed.
While states compete to promote electric vehicles, Karnataka is solely focused on investment and R&D in the field. It’s the finance department that must decide whether to grant incentives to EV owners, an official from the industries department stated.
Officials claim that subsidies are furnished to EV manufacturers and investors so that they can pass the savings on to consumers by lowering the vehicle’s base price.
Prospective electric vehicle buyers, on the other hand, claim that they are not receiving any discounts.
Investors in the electric vehicle sector will receive a 15% capital subsidy on fixed assets, including land, a 1% production-linked subsidy for five years, a 100% stamp duty exemption, a 0.1% registration charge, and a 50% subsidy on effluent treatment plant costs (up to Rs 2 crore).
“There is also a 25% capital subsidy on charging station equipment (up to Rs 10 lakh per station),” the spokesman added.
According to him, the state already has over 45 electric vehicle startups and over 400 research and development centres and is now looking into subsidizing companies that convert petrol vehicles to electric vehicles.
Ather Energy, Ola Electric, Mahindra Electric, Bosch, and Sun Mobility are among the EV manufacturers based in Karnataka.
On Wednesday, Union Road Transport and Highways Minister Nitin Gadkari told Rajya Sabha that the country has 8.7 lakh electric vehicles. With 2.5 lakh, Uttar Pradesh leads the way, heeded by Delhi (1.25 lakh) and Karnataka (72,544).
As the government endeavours to promote EV adoption, the GST on electric vehicles and charging stations has been decreased to 5% from 12% and 18%, respectively, he stated.
