Gujarat Launches A Progressive And Balanced EV Policy

The Indian state of Gujarat has launched a progressive and future-looking electric vehicles (EV) policy. The EV policy approval is timely as the state is looking at implementing green recovery measures in the aftermath of a particularly debilitating wave of COVID-19.


The EV policy aims to support electrification of 200,000 vehicles over the next four years (110,000 two-wheelers, 70,000 three-wheelers and 20,000 four-wheelers).

A bigger opportunity here is the integration and use of renewable energy to power these clean vehicles. The ability to leverage its growing renewable energy capacity (which is likely to touch the 12,000 MW mark) distinguishes Gujarat from all other Indian states.

Gujarat has taken a balanced approach in its EV policy by announcing a big incentive for EVs buyers (₹10,000 per kWh) and also offering lucrative supply side incentives to attract investments in manufacturing, thereby taking care of both demand and supply sides.

A thriving, clean electricity-based transportation sector in Gujarat can bring enormous benefits — driving economic recovery, creating new jobs, reducing dependence on imported oil, improving air quality, and avoiding greenhouse gas emissions.

A robust framework and periodic review can help unlock this billion-dollar EV opportunity and drive green economic recovery in the post-COVID world.

Reference- NRDC Report, Economic Times, FirstPost, Business Standard, livemint