Goa Issues Draft EV Policy, Proposes All Two-Wheelers to Switch to Electric After 2025
The policy enforced for five years proposes demand incentives of up to ₹30,000 for e-rickshaws and E2Ws
July 13, 2021
The Goa government has issued the draft ‘Goa Electric Mobility Promotion Policy, 2021’. The policy would be enforced for five years, from the date of its notification in the official gazette.
In February this year, Goa’s Minister of Power, Environment, and New & Renewable Energy Nilesh Cabral had emphasized the importance of ushering in electric two-wheelers in the state. He also highlighted other electric mobility initiatives as part of the larger initiative by the central government.
According to Cabral, the clean mobility program will be applicable for the first 10,000 electric two-wheelers sold in the state, which will reduce 5,000 tons of CO2 emissions every year and remove 10% of the polluting vehicles off Goa’s roads.
The draft policy
According to the draft policy, the Department of New and Renewable Energy would oversee the policy administration. The department would constitute the ‘State Electric Vehicle Board,’ with state government officials, the Department of Transport, Goa Electricity Department, Goa Energy Development Authority, and Convergence Energy Services (CESL) as its key members.
The board would establish a dedicated electric vehicle (EV) cell and develop an intensive public outreach program focused on creating awareness about the benefits of EV and key policy elements.
The policy would apply to all EVs, including electric two-wheelers (E2W), electric three-wheelers (E3W), passenger cars, light, and heavy commercial vehicles, registered and operating in Goa.
The policy would also apply to battery electric vehicles (BEV), hybrid vehicles, and plug-in hybrid electric vehicles (PHEV), as per the notifications and provisions mentioned under the ‘Faster Adoption and Manufacturing of Hybrid and EV’ (FAME-II) policy.
Last month, the Department of Heavy Industries had announced partial amendments to the FAME-II program.
Manufacturers of EVs, batteries, EV components, EV supply equipment, are eligible for incentives under the policy. Road tax and registration fees would be waived for all battery electric vehicles during the period of this policy.
Purchase and demand incentives offered under the policy (purchase and scrapping incentives) for all EVs would be directly given to the registered owners by the Department of New and Renewable Energy.
If the battery is not sold with the vehicle, 50% of the purchase incentive would be provided to the vehicle owner, and the remaining amount would be provided to the energy operators for incurring the cost of any deposit that may be required from the end-users for the use of a swappable battery.
Incentives for manufacturing units
Pioneering, mega, and ultra-mega EV manufacturing units will receive incentives based on the recommendations of a ‘high-power committee’ formed under this policy, which include capital subsidy up to 20% of fixed capital investment, 100% net State Goods and Service Tax (SGST) reimbursement for five years, and 100% stamp duty exemption.
Similarly, micro, small, and medium enterprises (MSMEs) are also eligible for incentives based on programs introduced by the Economic Development Corporation, Goa, Directorate of Industries, Trade, and Commerce, among others.
The Goa Industrial Development Corporation would provide built-up space with ready factory sheds to be used by MSME units.
Micro units would get a capital subsidy of 30% of the cost of capital, provided the subsidy on building or office is restricted to ₹500,000 (~$6,714), 100% net SGST reimbursement for five years, and 100% stamp duty exemption.
Small and medium units would get a capital subsidy of 30% of the cost of capital, provided the subsidy on building or office is restricted to ₹1 million (~$13,425.43), 100% net SGST reimbursement for five years, 100% stamp duty exemption, and price preference at the rate of 15% on the purchase made by the government departments for the registered small-scale units.
Utilities would receive 100% electricity duty reimbursement for five years and support in the construction of effluent treatment plant with 50% capital subsidy.
Incentives for electric two-wheelers
Demand generation incentives offered under the policy to E2W would be based on battery capacity (kWh) used in vehicles. The incentives are only available for E2W with advanced batteries and subject to a maximum incentive of ₹30,000 (~$402)/vehicle.
Original equipment manufacturers (OEMs) for two-wheelers must register their EV models, including swappable battery models, and meet the eligibility criteria specified by Goa’s Department of Transport.
A purchase incentive of ₹10,000 (~$134)/kWh of battery capacity would be provided for each vehicle to the registered owner (subject to a maximum incentive of ₹30,000 (~$402) per vehicle). Registered owners of two-wheelers with internal combustion engines (ICE) are also eligible for a ‘scrapping incentive’ for scrapping and de-registering their old ICE two-wheelers registered in Goa.
An incentive of up to ₹5,000 (~$67) would be reimbursed by the state’s Department of New and Renewable Energy to the registered owner of two-wheelers. The incentive is subject to evidence of matching contribution from the dealer or OEM and confirming scrapping and de-registration of the ICE vehicle by the Regional Transport Office.
All commercial two-wheelers operating in Goa must switch to electric by December 31, 2025. After the deadline passes, only electric two-wheelers would be sold in the state. Meanwhile, existing registered ICE vehicles are allowed to operate until the end of their useful life.
Incentives for Electric Autorickshaws (e-rickshaws)
Incentives would be provided to all ‘electric L5M category’ (passenger three-wheelers or autorickshaws) vehicles with advanced batteries eligible under the FAME-II program.
A purchase incentive of ₹10,000 (~$134)/kWh of battery capacity per vehicle (subject to a maximum incentive of ₹30,000 (~$402) per vehicle) would be provided to support self-employment and maximum ownership of e-rickshaws.
Registered e-rickshaw owners (vehicles eligible for the purchase incentive) are also eligible for a scrapping incentive of ₹10,000 (~$134).
Meanwhile, a purchase incentive of ₹30,000 (~$402) per vehicle will be provided to the registered owner to purchase one e-rickshaw or one e-cart per individual.
Incentives for electric buses
The state government aims to provide appropriate incentives and other support necessary to ensure that pure electric buses make up at least 50% of all new stage carriage buses (i.e., for all public transport vehicles with 15 seats or more) procured for the city fleet, also including last-mile connectivity. The state government has set a target to introduce 500 pure electric buses by 2025.
Incentives for goods carriers (L5N and N1 vehicles)
The Department of New and Renewable Energy will provide the incentives to all EVs in the L5N (three-wheeled goods carriers) category and N1 (goods carrier having gross vehicle weight not exceeding 3.5 tons) category with advanced batteries eligible under FAME-II. The incentive is also applicable to swappable models where the battery is not sold with the vehicle.
The policy encourages individuals and fleet owners to adopt electric goods carriers (e-carriers). The policy offers a purchase incentive of ₹30,000 (~$402)/e-carrier registered in Goa after the notification of this policy. Interest subvention of 5% on loans and or hire purchase program for purchasing e-carriers would be provided by CESL.
E-carriers (vehicles eligible for the purchase incentive) are also eligible for ‘scrapping incentive’. The Department of New and Renewable Energy will reimburse the incentive of ₹10,000 (~$134) to the buyers of the e-carriers.
Incentives for electric cars
A purchase incentive of ₹10,000 (~$134)/kWh of battery capacity would be paid to electric cars (e-cars) – subject to a maximum incentive of ₹150,000 (~$2,014)/ vehicle – to the registered owners of e-cars to be registered in Goa after the notification of this policy. The incentive applies only to electric cars with advanced batteries eligible under the FAME-II policy.
Goa aims to install a charging station every 25 km on highways and every 3 km within city limits. Battery swapping and fast charges are also included in the ambit of this policy. CESL will assist the state government in setting up charging and battery swapping stations across Goa in multiple phases. All EV charging stations, both private and public, must install Bharat EV Charger AC-001 and Bharat EV Charger DC-001.
All new and renovated non-residential buildings, as well as individual and other residential buildings, cooperatives group housing societies, and colonies managed by residents’ welfare associations (RWAs), with parking demarcated for more than ten equivalent car spaces (ECS), will need to have at least 20% ‘EV ready’ ECS spots with conduits installed.
Power distribution companies will work with owners to ensure adequate supply infrastructure is available to install these charging points. All housing and commercial establishments must register with Goa Electricity Department to install charging stations with designated parking spaces. Additional duties on electricity will be waived.
The state government will incur all electricity infrastructure costs up to ₹800,000 (~$10,743.3) to install electric vehicle supply equipment and charging stations. The state would provide a 20% capital subsidy for the installation of solar-powered charging stations.
Electricity will be provided at a lowered power tariff, currently of ₹4.2 (~$0.056)/kWh, as determined by the Joint Electricity Regulatory Commission annually. The standard tariff would be applicable in all areas where stations are located, including commercial, residential, and industrial. It is also recommended to waive off fixed demand charges during the policy term.
Last month, the Power Department of West Bengal announced the EV Policy 2021, aiming to position the state as a sustainable transportation infrastructure hub. Through the move, the state government is promoting electric mobility in the state. The policy will remain in force for five years from the date of notification in the official gazette.
Rahul is a staff reporter at Mercom India. Before entering the world of renewables, Rahul was head of the Gujarat bureau for The Quint. He has also worked for DNA Ahmedabad and Ahmedabad Mirror. Hailing from a banking and finance background, Rahul has also worked for JP Morgan Chase and State Bank of India. More articles from Rahul Nair.