Gujarat State Electric Vehicle Policy 2021
Gujarat State Electric Vehicle Policy 2021
The Gujarat State Electric Vehicle Policy 2021 was a four-year policy framework notified by the Ports and Transport Department. Backed by a ₹870 crore outlay, the policy targeted the adoption of 2,00,000 electric vehicles by offering direct-to-buyer demand subsidies via Direct Benefit Transfer (DBT) stacked on top of Central FAME II benefits, alongside capital subsidies for commercial public charging stations.
Promoting electric mobility and clean transportation
Policy Objectives
- •Transition Gujarat's transportation sector toward electric mobility by leveraging the state's lead in battery-operated vehicle adoption.
- •Establish the state as a prime manufacturing hub for EVs and ancillary automotive components.
- •Encourage technological start-ups in associated sectors like EV data analytics, battery management, and smart charging solutions.
- •Mitigate air pollution and improve urban environmental quality.
Four-Year Vehicle Adoption Targets (2021–2025)
| Vehicle Segment | Adoption Target |
|---|---|
| Electric 2-Wheelers | 1,10,000 units |
| Electric 3-Wheelers | 70,000 units |
| Electric 4-Wheelers | 20,000 units |
| Total Target | 2,00,000 units |
Stacking eligibility with Central FAME II guidelines
Vehicle Eligibility Criteria
Eligible electric vehicles must have qualified for subsidies under the Government of India's FAME II scheme (dated 08/03/2019, F. No. 1(1)/2019-AEI) and its subsequent modifications. This ensured that vehicles met national safety, battery capacity, and localization thresholds before state incentives applied.
Charging Infrastructure Eligibility
Public charging stations were eligible for support if they met the technical guidelines and standard operating specifications issued by the Ministry of Power Circular dated 01/10/2019.
DBT purchase subsidies and charging network grants
State Demand Subsidy Slabs
| Vehicle Segment | Max. Battery Capacity Eligible | Subsidy Rate per kWh | Max. Ex-Factory Price Limit |
|---|---|---|---|
| 2-Wheeler | 2 kWh | ₹10,000 per kWh (Max ₹20,000) | ₹1.50 Lakh |
| 3-Wheeler | 5 kWh | ₹10,000 per kWh (Max ₹50,000) | ₹5.00 Lakh |
| 4-Wheeler | 15 kWh | ₹10,000 per kWh (Max ₹1,50,000) | ₹15.00 Lakh |
Capital Subsidy for EV Charging Stations
- •Grant Quantum: 25% capital subsidy on commercial public charging equipment and machinery.
- •Ceiling: Up to ₹10 Lakh per charging station, limited to the first 250 public commercial stations registered in the state.
- •Eligible Promoters: Open to private networks, DisCom-owned charging lots, and investor-owned battery-swapping stations.
Electricity Tariff for EV Charging
- •Domestic connections can charge EVs at existing household rates (excluding agricultural connections).
- •Commercial third-party charging stations follow the utility tariff orders approved by GERC on 31/03/2018.
EV industrial projects and residential charging NOCs
Industrial Support Routing
The EV Policy contained no independent manufacturing incentive schedule. Instead, EV manufacturers, motor assemblies, and battery recycling plants were routed to claim capital and tax incentives under the Gujarat Industrial Policy 2020 (and successor industrial frameworks).
Society & Housing Rules
Residential housing societies and commercial establishments were mandated to issue a No Objection Certificate (NOC) to members seeking to install charging stations inside their designated parking slots.
Central stacking permissions and state exclusions
Stacking & Exclusions Table
| Incentive Side | Central FAME II Stacking | Other State Government Schemes |
|---|---|---|
| Vehicle Purchase Subsidies | Allowed — State top-up is credited over and above Central FAME II. | Barred — Beneficiaries can only claim under one Gujarat state scheme per vehicle. |
| Charging Infrastructure | Barred — Grantees must not have claimed any other Central GoI capital grant for the same station. | Not allowed for matching claims. |
Direct Benefit Transfer (DBT) steps
- 1Vehicle Purchase: Customer selects and purchases a FAME II-eligible EV from an authorized dealer in Gujarat.
- 2Document Verification: The dealer registers the purchase, uploading battery specifications, Aadhaar, and FAME II clearances to the transport portal.
- 3DBT Disbursement: The State Transport Department audits the claims and credits the subsidy directly to the customer's verified bank account.
- 4Charging Stations: Promoters apply to the Energy & Petrochemicals Department for verification before receiving capital reimbursements.
Administering departments and GERMI support
Governing Bodies
| Department / Body | Role in EV Ecosystem |
|---|---|
| Ports and Transport Department | Nodal department responsible for planning, overall review, and vehicle DBT administration. |
| Energy and Petrochemicals Department | Administers commercial charging station subsidies and utility grid connections. |
| GERMI (Gujarat Energy Research & Management Institute) | Nodal research and incubation institute supporting EV technology training. |
Operative dates and current status
| Milestone / Event | Timeline Details |
|---|---|
| Policy Notification Date | 23 June 2021 |
| Policy Operative Term | 01 July 2021 to 30 June 2025 (4 Years) |
| Purchase Subsidy Phase-Out | Progressively withdrawn between 2021 and 2024 as adoption budget caps were reached. |
| Motor Vehicle Tax Window | 1% concessional M.V. tax window ran from 01/04/2025 to 31/03/2026; now closed. |
| Current Status | Lapsed. A successor Gujarat EV policy is under draft as of 2026. |