Maharashtra Cabinet Approves ₹66.82 Crore Additional EV Incentive For Bajaj Auto Under 2021 Policy As Special Case

Mumbai: The Maharashtra Cabinet on Tuesday approved an additional incentive of Rs 66.82 crore for Bajaj Auto Ltd under the Maharashtra Electric Vehicle Policy 2021 as a special case, taking into account the company's contribution to the industrial sector and its investments in the state.

CM Devendra Fadnavis Chairs Cabinet Meeting

The decision was taken at a Cabinet meeting chaired by Chief Minister Devendra Fadnavis.

Under the Maharashtra Electric Vehicle Policy 2021, incentives are provided for newly registered electric vehicles across different vehicle categories. The incentive amount is offered to buyers by manufacturers at the time of sale, after which the manufacturers seek reimbursement from the state government.

One-Lakh Electric Two-Wheeler Incentive Limit Already Exhausted

However, the policy's state-wide ceiling of one lakh electric two-wheelers eligible for incentives had already been exhausted through the combined sales of all manufacturers in Maharashtra.

Bajaj Auto subsequently sought incentives for an additional 66,817 electric two-wheelers sold beyond the prescribed limit. The state government has now approved an additional allocation of Rs 66.82 crore to the company as a special case under the existing policy.

Government Cites Bajaj Auto's Industrial Contribution And Investments

The decision recognises the company's industrial contribution and investments while allowing additional financial support for the eligible vehicles beyond the original state-level ceiling.

The Maharashtra EV Policy 2021 was introduced to encourage the adoption of electric vehicles by providing financial incentives to buyers and promoting cleaner mobility. Under the mechanism, vehicle manufacturers initially extend the benefits to customers at the point of sale and subsequently claim the corresponding amount from the government.

The latest decision provides a special relaxation for Bajaj Auto despite the exhaustion of the overall incentive limit for electric two-wheelers under the policy.

The Cabinet approval is expected to facilitate the release of the additional incentive amount for the 66,817 vehicles covered by the company's request.

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