Maharashtra State’s Electric Vehicle Policy, 2018

ELECTRIC VECHILES

Maharashtra State’s Electric Vehicle Policy, 2018

Based on the recent techno-economic developments in EV sector and the vision of the Government of India, a need was felt by Government of Maharashtra to formulate a policy for promotion of this sector in Maharashtra. The State Government envisions to build Maharashtra as a model state in EV.

Introduction

Electric Vehicle (EV) technology is considered globally to be the game changer in transportation sector. It offers advantages such as eco-friendliness, cheaper fuel-cost, lower maintenance expenses, energy efficient and increased safety. Global industry, governments and early movers have successfully demonstrated that EV is practical, sustainable, safe and affordable.

United Nations (UN) aims to promote EV under its sustainable development agenda for 2030. Government of India (GoI) plans to make India an 'electric vehicle nation' by 2030.

Under the National Electric Mobility Mission Plan (NEMMP), Government of India (GoI) envisions six million electric and hybrid vehicles on India's roads by 2020. Towards this purpose, Faster Adoption andManufacturing of (Hybrid &) Electric Vehicles (FAME) was launched by GoI, and it targets a saving of 120 million barrels of oil and 4 million tons of CO2, and lowering of vehicular emissions by 1.3 percent by 2020.

FAME India scheme has four focus areas - technology development, demand creation, pilot projects, charging infrastructure. This scheme is proposed to be implemented over a period of 6 years, till 2020. The Phase-1 of the scheme was implemented from April, 2015 till March, 2017 with an approved outlay of Rs. 795 crore.

Based on the recent techno-economic developments in EV sector and the vision of GoI, a need was felt by Government of Maharashtra to formulate a policy for promotion of this sector in Maharashtra. Government of Maharashtra envisions to build Maharashtra as a model state in EV. Further, EV sector will create a huge opportunity for creation of jobs in manufacturing as well as service providing sectors.

Vision, Mission, Objectives And Targets

Vision

Maharashtra - a globally competitive state for electric vehicle and component manufacturing, and maximize adoption of EV in Maharashtra.

Mission

To place Maharashtra amongst the most preferred investment destinations for global investors through promotional strategies combined with developing a competitive and sustainable investment environment, thereby making Maharashtra as one of the most favored economic magnet and center of attraction for EV.

Policy Objectives

  • To develop Maharashtra as the leader in EV manufacturing and use of EV
  • To create newer employment opportunities
  • To promote export of EV, components, battery and charging equipments
  • To promote R&D, innovation and skill development in EV sector
  • To promote sustainable transport system

Policy Targets:

  • Increase number of EV registered in Maharashtra to 5 lacs
  • To generate an investment of Rs.25,000 crores in EV, EV manufacturing and component manufacturing, battery manufacturing/assembly enterprises and charging infrastructure equipment manufacturing in the state
  • To create jobs for 1,00,000 persons

Strategic Drivers of the Policy

  • Promotion of adoption of EV technology;To increase the viability of EV by way of providing fiscal and non-fiscal incentives.
  • Promotion of creation of dedicated infrastructure for charging of EVs through subsidization of investment
  • Promotion of R&D and Innovation; To promote the establishment of Research & Development Centers and Center of Excellence across the state

Incentives

  1. Incentives for EV manufacturing, EV component manufacturing and EV battery manufacturing/assembly enterprises, manufacturers of electrical battery chargers

Following incentives will be admissible to EV manufacturing, EV component manufacturing and EV battery manufacturing/assembly enterprises, manufactures of electric battery chargers. These incentives will be over and above the incentives under schemes of Government of India.

  • Incentives to pioneer units, mega units &ultra mega units

The package of incentives to pioneer units, mega units & ultra mega units manufacturing electric vehicles shall be as per the 'Template of Incentives'

  • Incentives to MSME and large units

Under the Electric Vehicle Policy-2018, throughout the state, manufacturing MSMEs and large units will be eligible for incentives as per Package Scheme of Incentives(PSI) in force. However, eligible units in A & B zone (as defined under PSI) will be provided incentive as per those available in C zone. Other zones will be eligible for incentives at one scale higher. (Example: Unit in D zone will be eligible for incentives of D+ zone).

  1. Incentives & assistance for EV Charging
  • Electrical power required for EV charging will be charged at residential rate across the state
  • Common charging points in residential areas, societies, bus depots, public parking areas,railway stations and fuel pumps etc. will be allowed. After the receipt of application for setting up a charging point is received, the concerned planning authority & electricity supplying agency shall grant permission within 15 days. If permission is not received within 15 days, it will be deemed to be permitted.
  • Development Control Rules (DCR) of all local self-Government & special planning authorities will be suitably modified to allow for setting up of common public charging facilities in parking areas of malls, residential properties & parking areas etc.
  • Petrol pumps will be allowed to setup charging station freely subject to charging station areas qualifying fire & safety standard norms of relevant authorities under relevant acts/rules
  • Commercial public EV charging stations for 2 wheelers, 3 wheelers, cars and buses will be eligible for 25% capital subsidy on equipment/machinery (limited up to Rs. 10 lacs per station) for first 250 commercial public EV charging stations.
  1. Incentives & provisions for EV Buyer
  • Incentives for only Battery Electric Vehicle (BEV)
  • Initially Government of Maharashtra to promote EV in public transport in six cities ie:- Mumbai, Pune, Aurangabad, Thane, Nagpur and Nashik
  • First 1,000 EV private/public passenger bus buyer whose vehicles are registered in the state will be eligible for user subsidy over policy period of 5 years
  • 10% subsidy for passenger buses registered in the state to private/public bus transport buyer, on base price (maximum limit of Rs. 20 lacs per vehicle) will be eligible to buyer. Subsidy will be transferred to buyer's bank account within 3 months of purchase date
  • First 1,00,000 EV (2 wheeler-70,000, 3 wheeler-20,000 and 4 wheeler-10,000 all categories combined) registered in the State, private transporter and individual buyer to get end user subsidy over policy period of 5 years
  • 15% subsidy (maximum limit of Rs.5,000 for 2 wheeler, Rs. 12,000 for 3 wheeler, and Rs 1 lac for 4 wheeler) per vehicle to private transport and individual buyer for electrical vehicles registered in the state, on base price will be paid to buyer. Subsidy will be transferred to buyer's bank account within 3 months of purchase date
  • Exemption from road tax and registration fees for electric vehicles.
  1. Promotion of R&D, Innovation and Skill Development in EV Sector:
  • Based on an assessment of feasibility and other details by the high power committee, proposal will be prepared for the establishment of center of excellence and research and development centers, finishing schools and other employment oriented centers.
  • The Maharashtra State Board of Technical Education (MSBTE), Maharashtra State Skill Development Society (MSSDS) and other agencies will institute training-based certification and placement programmes. They would collaborate with National Automotive Board (NAB) and other associations to understand their human resource requirements. Based on these requirements, a merit based, defined certification and placement procedure shall be instituted so that appropriate manpower is created for the EV industry.

Source: “Maharashtra’s Electric Vehicle and Related Infrastructure Policy – 2018.” Government of Maharashtra, Department of Industries.

| Article published on 09/10/2018 by Moulin

 
 
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