Subsidy on Electric vehicles

• 13 Feb 2025

Why in News? 

Under the Electric Vehicle Policy, the Rajasthan government has constituted an e-vehicle promotion fund of Rs 200 crore to promote electric vehicles. 

Key Points 

• About the Fund: 
  • The State Government's "Electric Vehicle Policy-2022" includes a provision to reimburse the State GST amount and offer a one-time grant from the E-Vehicle Promotion Fund to buyers of electric vehicles equipped with modern batteries, following the guidelines of FAME-2. 
  • The reimbursement and one-time grant amount will be payable on vehicles purchased from 1^st January 2022 and registered in the state.  
  • The Process: 
    • To avail the subsidy, firstly the vehicle manufacturer is required to register on the departmental portal.  
    • After verification, the department will allow the vehicle buyer to apply for the grant.  
  • Under this policy, all types of electric vehicles ranging from two-wheelers to heavy vehicles have been included. 
  • The government aims to encourage more people to use electric vehicles instead of diesel and petrol, reducing pollution and preserving environmental balance.  
• Advantages of Electric Vehicles: 
  • It produces zero tailpipe emissions, contributing to cleaner air and improved public health. 
  • Electricity can be cheaper than gasoline, leading to lower fuel costs per kilometer. 
  • Electric motors produce significantly less noise than gasoline engines. 
  • Electric motors convert a higher percentage of energy into useful power than gasoline engines. 

 Electric Vehicles 

• Electric vehicles are types of vehicles that use one or more electric motors for propulsion, instead of conventional internal combustion engines (ICE), which burn gasoline or diesel. 
• Types of Electric Vehicles: 
  • Battery Electric Vehicles (BEV): These rely solely on battery power for propulsion and produce zero tailpipe emissions. 
  • Plug-in hybrid electric vehicles (PHEV): Combine an electric motor with a gasoline engine. These can be charged externally and run on battery power for a limited distance, then switch to the gasoline engine for longer trips. 
  • Hybrid electric vehicles (HEVs): These use both an electric motor and a gasoline engine, but the battery cannot be charged by plugging in directly.