Some states, like Gujarat, Maharashtra and Delhi, are providing large subsidies to consumers to encourage mass adoption of electric vehicles (EVs). But the Karnataka governments policy, released earlier this year, has little on this front. The policy focuses mostly on drawing EV makers and investors to the state.
It offers 15 per cent capital subsidy to investors in the sector on the value of fixed assets over five equal annual payments, with maximum land covered being 50 acres, and a production-linked subsidy of 1 per cent on turnover. The latter will be provided to large EV assembly and manufacturing units for five years, starting from the first year of commercial operations.
But such incentives have not helped the cause of consumers: prices of EVs have not come down in the state as they were expected to. Take the example of an electric scooter launched recently. According to reports, its two variants are priced at Rs 99,999 and Rs 1.2 lakh in Karnataka. In Gujarat, they will be available for Rs 80,000 and Rs 1 lakh, and for Rs 85,000 and Rs 1.1 lakh in Delhi.
By not offering a subsidy to EV buyers, the Karnataka government appears to be guarding itself against more pandemic-triggered financial setbacks and cuts in central devolution of funds.