Four years after introduction, policy on electric vehicles yet to be fully implemented
The Assam government introduced its Electric Vehicle (EV) Policy in September 2021 to boost the production and sale of EVs across the state. However, nearly four years later, buyers are still unable to fully avail themselves of the incentives promised under the policy. The slow implementation of these benefits has raised concerns among consumers, dealers, and industry stakeholders.
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The Electric Vehicle Policy of Assam, 2021, was designed to promote EV adoption and develop a strong infrastructure, including a network of charging stations, to attract manufacturers to invest in the sector. As per the policy, the state government pledged subsidies of Rs 20,000 on two-wheelers, Rs 50,000 on three-wheelers, and Rs 1.5 lakh on four-wheelers. Additionally, the policy promised a 100% exemption on registration charges, road tax, and parking fees for EVs. There was also a provision for a 90% exemption on electricity duty for EV charging stations for the first five years. Further incentives were planned for early EV adopters, charging infrastructure, and the manufacturing of EVs and their components.
The strategy aimed for 25% EV penetration in new vehicle registrations by 2026, supported by an extensive charging network to accelerate adoption. However, despite the passage of time, these incentives remain partially implemented, creating uncertainty among potential buyers and industry insiders.
While some aspects of the policy have been put into effect, many benefits are still not reaching consumers. A dealer at an EV showroom told GPlus, "The policy is not fully implemented, and we are hardly receiving any subsidies from the state, which would benefit buyers." Several other dealers expressed similar concerns, stating that the policy remains only partially executed, which is discouraging both buyers and sellers from actively engaging in the EV market.
A senior transport department official clarified, "Registration fees for electric vehicles are completely waived, ensuring a 100% exemption on registration charges." The official also mentioned a 2% exemption in motor vehicle tax for EVs. However, when questioned about other incentives, the official indicated that the industry and commerce department is responsible for providing those subsidies. The lack of coordination between various government departments has resulted in delays and inefficiencies in the full implementation of the policy.
A source within the industry and commerce department acknowledged ongoing technical issues in coordinating with the transport department regarding incentive distribution. "A decision on this matter will be taken soon," the source assured. The source further stated that discussions are ongoing to ensure the smooth execution of the policy, but a clear timeline for full implementation has not been established.
As the state government struggles to fully implement its own policy, many questions arise regarding the overall credibility of development policies in Assam. The delay in fulfilling the promises made under the EV policy not only affects buyers and dealers but also impacts the broader goal of transitioning to a greener, more sustainable transportation system. The Assam government must take swift action to resolve the existing challenges and ensure that the promised benefits reach consumers without further delay. Until then, the effectiveness of the Electric Vehicle Policy remains in question, leaving stakeholders waiting for tangible results.
