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The Rajasthan government has decided to establish an EV promotion fund to boost electric vehicles (EVs). A provision of ₹200 crore has been made under this fund, which will be implemented under the Electric Vehicle Policy-2022. This initiative aligns with the FAME-2 (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) guidelines and will provide State GST (SGST) reimbursement and a one-time grant to EV buyers. Down below, we will take you through the industries reaction and its implementation of this initiative:
Zelio E-Mobility Limited’s Co-founder and Managing Director, Kunal Arya, said,The Rajasthan government's decision to establish a ₹200 crore EV promotion fund under the Electric Vehicle Policy-2022 is a revolutionary step towards accelerating the adoption of sustainable mobility. By providing State GST reimbursement and a one-time grant, consumers will receive the necessary financial incentives to shift towards green alternatives, particularly in the rapidly growing electric two-wheeler sector.
At Zelio E-Mobility, we appreciate this visionary initiative and urge manufacturers, dealers, and consumers to take advantage of these incentives to drive the EV revolution in Rajasthan. This policy will undoubtedly accelerate EV adoption and help consumers experience long-term savings and environmental benefits.
It is essential for other states to introduce similar schemes, as the EV industry is at a critical turning point. Such supportive policy measures will play a significant role in building a sustainable future for the country and promoting mass EV adoption."
Will Benefit EV from This Scheme?
The scheme will benefit electric vehicles purchased on or after September 1, 2022, and registered in Rajasthan. However, only EVs bought and registered in Rajasthan will be eligible for subsidies.
How to Avail the Subsidy?
The Rajasthan Transport Department has established a process for obtaining the EV subsidy. According to Joint Transport Commissioner Jagdish Prasad Bairwa, buyers must follow these steps:
1.Vehicle Manufacturer Registration: Manufacturers registered under FAME-2 must register themselves on the state transport department’s portal.Before electric vehicle (EV) buyers can claim the subsidy, manufacturers must be registered under the Faster Adoption and Manufacturing of Electric Vehicles (FAME-2) scheme. This national-level initiative ensures that only approved manufacturers and models qualify for incentives. Manufacturers must also register themselves on the Rajasthan Transport Department’s portal to participate in the state subsidy program. This ensures transparency and eligibility compliance.
2.Submission of EV Model Details: Manufacturers must submit details about their EV models, battery types, and capacity per FAME-2 standards. Once registered, manufacturers need to submit detailed specifications of their EV models on the transport department’s portal. These details include:
Battery Type & Capacity – The type of battery used (e.g., lithium-ion) and its power capacity.
Vehicle Specifications – The model name, category (two-wheeler, three-wheeler, four-wheeler, etc.), and compliance with FAME-2 norms.
Other Technical Details – Information necessary to verify that the EV meets subsidy eligibility criteria.This step ensures that only approved EVs are considered for subsidy.
3.Verification Process: The Rajasthan Transport Department will verify this information through their portal. The Rajasthan Transport Department will verify all submitted details through their online portal. The verification process includes:
1.Cross-checking the manufacturer’s registration status.
2.Ensuring the submitted EV models meet the eligibility requirements.
3.Confirming that the vehicles adhere to FAME-2 guidelines for subsidy qualification.
Only after successful verification will the manufacturer’s EV models be listed as eligible for the scheme.
4.Application on the Vahan Portal: Buyers must enter their vehicle registration number and the last five digits of the chassis number. Once a buyer purchases an eligible EV, they must apply for the subsidy through the Vahan Portal. To do this, they need to:
1.Enter their vehicle registration number (issued at the time of registration).
2.Provide the last five digits of the chassis number for authentication.
3.This step ensures that only the rightful owners of registered EVs can apply for the subsidy.
5.OTP Verification & Document Upload: Buyers must verify their registered mobile number through an OTP and upload their bank details, the first page of their passbook, or a canceled cheque. To proceed with the application, buyers must verify their registered mobile number through an OTP (One-Time Password). Once verified, they need to upload the following documents:
Bank Account Details – Including the first page of their passbook or a canceled cheque to verify their account information.
Identity Proof – If required, additional documents may be requested for verification.
These documents help the authorities verify the buyer’s authenticity and ensure the subsidy is transferred to the correct beneficiary.
6.Subsidy Transfer: Once the verification process is complete, the subsidy amount will be directly transferred to the vehicle owner’s bank account. The Direct Benefit Transfer (DBT) mechanism ensures that buyers receive the subsidy without any middlemen, reducing the chances of fraud or delays.
By following these steps, eligible EV buyers in Rajasthan can seamlessly avail the benefits of the state’s EV subsidy scheme
Nehal Gupta, Founder & Managing Director of Accelerated Money For U, said,"The Rajasthan government’s announcement of a ₹200 crore fund to promote electric vehicles (EVs) is a significant milestone for the sector. This visionary step reflects the state's commitment to adopting green mobility solutions and moving toward a cleaner, greener future.
From an industrial perspective, this fund is essential to overcome challenges that hinder large-scale EV adoption, such as high costs and limited infrastructure.Such a substantial fund will be used to promote EV manufacturing, expand charging facilities, and create an ecosystem where both consumers and businesses can easily adopt electric mobility. This initiative also highlights the government’s strong support for the industry, boosting confidence among investors and stakeholders.
With this initiative, Rajasthan is emerging as a leader in EV adoption in India. It offers significant opportunities for innovation, job creation, and environmental improvement. The industry now has the necessary financial support and government backing to accelerate the development of advanced EV technology and infrastructure, thereby driving the transition to clean transportation.
At Accelerated Money, we firmly believe that shifting towards electric mobility is not just a trend but a crucial step towards reducing carbon footprints and increasing energy efficiency. With this financial support, Rajasthan is positioning itself as a frontrunner in the EV revolution, inspiring other states and cities to take similar initiatives."
Anshul Gupta, Managing Director of OPG Mobility said,"The Rajasthan government's allocation of ₹200 crore towards EV subsidies is a significant step towards wider EV adoption and a greener future for the state. This initiative strongly aligns with OPG Mobility's vision of providing sustainable, affordable, and innovative mobility solutions. Rajasthan has been a key market for us, and our commitment to its consumers has been a key factor in our growth. The state's forward-thinking approach, including subsidies for EV buyers, will accelerate the transition to cleaner transportation and further popularize electric two- and three-wheelers.
This move signals a growing acceptance of EVs and a commitment to reducing the environmental impact of conventional vehicles. As demand for sustainable transportation increases, OPG Mobility is ready to contribute by offering cutting-edge EV technologies and services that meet the evolving needs of environmentally conscious consumers. We are dedicated to expanding our presence and enhancing our services in Rajasthan.
The Rajasthan government's support, coupled with the rising public interest in electric mobility, positions the state as one of the leaders in India's shift towards sustainable transportation. OPG Mobility is proud to be part of this transformation and committed to providing innovative solutions that will shape Rajasthan's transportation landscape for years to come."
Limited Availability of Incentives
The government has also clarified that this incentive fund will be available for a limited number of vehicles. Therefore, manufacturers, dealers, and buyers are encouraged to apply as soon as possible to take advantage of this scheme.
What Will Be the Benefits of This EV Policy?
The Rajasthan government’s initiative will accelerate EV adoption across the state. The key benefits of this policy include:
1.Environmental improvements through reduced emissions and lower carbon footprints.
2.Lower fuel consumption, leading to cost savings for consumers.
3. Increased demand for electric vehicles, encouraging more manufacturers to expand their operations.
4.Financial relief for consumers by reducing the economic burden through subsidies.
Moreover, this step by the Rajasthan government can prove to be a major initiative towards promoting clean energy and developing a sustainable transportation system.
Conclusion
The establishment of the ₹200 crore EV Promotion Fund by the Rajasthan government is a significant and forward-thinking step toward boosting electric vehicles. By providing State GST reimbursement and a one-time grant, this scheme will offer financial support to consumers, making EV purchases more affordable and appealing.
This policy will not only promote the EV industry but also help expand charging infrastructure, allowing both consumers and businesses to adopt electric mobility more easily. The initiative will also drive innovation, job creation, and environmental conservation.
Industry leaders like Accelerated Money For U and Zelio E-Mobility have appreciated this initiative and urged other states to implement similar policies. However, since the incentive is available for a limited number of vehicles, manufacturers, dealers, and consumers must apply quickly to take full advantage of this opportunity.
Overall, this move by the Rajasthan government has the potential to position the state as a leader in electric mobility while inspiring the rest of the country to develop a green and sustainable transportation system.
