Subsidy option vanishes from e-VEG portal: No more subsidy on EVs in Gujarat?

The sudden informal discontinuation of Gujarat State Electric Vehicle Policy 2021(GSEVP), has caused panic in the state’s

EV market.

The policy initiated in 2021 aimed to promote the adoption of electric vehicles(EVs) up to the year 2025. However, the subsidies making the environment-friendly rides budget-friendly have been experiencing resistance from Gujarat’s Ports and Transport Department. 

Citing his experience, an anonymous Ather dealer from Ahmedabad said “The portal started giving errors one week prior, this is normal for the portal as it is down many times, but this time when it was back again the applying for the subsidy option was not there”

Planning a greater adoption of EVs, the central government along with respective states has either provided subsidies or relaxed the RTO rates. After the recent update, Gujarat has only remained with high RTO rates undoing the progress achieved so far.

Anticipating the outcomes, a TVS dealer in Ahmedabad stated “This sudden removable of subsidy at festival time will affect the sales, govt should provide some clarity as per unofficial sources in RTO subsidy is not coming back so we along with company had to come up with knee jerk reaction to sustain the momentum.

Under GSEVP, the government tends to provide Rs 10,000 per KWH for vehicles of price up to Rs 1.5Lakh in the case of

E-2W

GSEVP aims to electrify 2,00,000 vehicles by 2025, which has only been 42% covered after 2 years of commencement. Noting a remarkable growth of 352% Gujarat’s EV adoption plan has underlined its significance in the government FAME policy across the nation. Meanwhile, the sudden disappearance of the subsidy option has generated the risk of waiver of subsidy. 

The unannounced step of the government remained unclear as the market continued to suffer in suspense.