Chhattisgarh Reduces EV Subsidy by ₹50,000

Raipur. The Chhattisgarh government has now cut the subsidy amount given to those who buy electric vehicles (EV). Under the Electric Vehicle (EV) Policy, there was a provision of subsidy of 10 percent or maximum Rs 1.5 lakh on the purchase of electric vehicles, which has now been reduced from Rs 1.5 lakh to Rs 1 lakh. At the same time, the subsidy given on electric vehicles above Rs 20 lakh has also been abolished. Earlier, electric vehicles above Rs 20 lakh were also being subsidized by the state government. Also, hybrid electric vehicles were being given 50 percent incentive of the purchase incentive given to fully electric vehicles, but now the state government has decided that no subsidy will be given to any type of hybrid vehicles. The Transport Department has issued a notification in this regard and this notification has become effective from the date of publication in the gazette.

It is worth noting that the Electric Vehicle (EV) Policy 2022 has been implemented by the state government in Chhattisgarh to encourage the purchase of electric vehicles. Under this policy, EV buyers were given a subsidy of up to 10 percent of the vehicle price, which could be up to a maximum of Rs 1.5 lakh. With the implementation of this policy, the sale of electric vehicles in the state has increased unexpectedly. Due to this, the subsidy burden on the state government is also increasing continuously. Transport department officials say that reducing the subsidy amount on electric vehicles and eliminating the subsidy on electric vehicles costing more than Rs 20 lakh will reduce the financial burden on the government.

Subsidy payment of more than 85 crores pending

It has been told that the subsidy has not been paid to the electric vehicle and hybrid vehicle buyers registered in the year 2022. The pending subsidy amount is said to be around Rs 85 crore. This outstanding subsidy amount is to be paid to about 80 thousand electric vehicle buyers. Currently, an amount of Rs 30 crore has been released for the payment of the outstanding subsidy in the form of the first installment. At the same time, subsidy of about Rs 80 crore has been given to the buyers of electric vehicles so far.

Transport department officials say that the buyers of e-rickshaws or two-wheelers will not be affected by the reduction in the subsidy amount on electric vehicles. This is because the price of small electric vehicles is less than Rs 10 lakh. Their buyers will continue to get subsidy up to 10 percent and a maximum of Rs 1 lakh. Only buyers of e-vehicles and hybrid vehicles above Rs 20 lakh will be affected.