Key Takeaways ✨
India’s electric mobility journey is progressing quickly. While national schemes like FAME and PLI are making headlines, much of the real impact is happening at the state level — where governments are introducing their own electric vehicle (EV) policies to accelerate local adoption and support infrastructure.
Every Indian state has unique EV goals. Some are focusing on purchase subsidies, others on building charging networks, and a few are creating large EV industrial parks to boost manufacturing. Whether you’re planning to buy an EV or launch a business in the sector, understanding your state’s EV policy can save you a lot of money and help you plan better.
This guide will give you a complete overview of EV benefits by state, who qualifies, and how you can apply for these incentives.
Why State EV Policies Matter
The central government lays down the big picture vision — but states are responsible for implementing and executing EV-friendly policies. Transportation, power, urban planning, land use, and local industrial development fall under state control.
Here’s how state policies help:
- They reduce the effective cost of EVs through purchase subsidies
- They remove road tax and registration charges
- They offer capital support for charging stations
- They provide subsidized electricity tariffs for EV-related infrastructure
- They allocate land and financial assistance to manufacturers and startups
If you’re serious about buying an EV or starting an EV business in India, your state’s policy is as important as the national schemes.
Common Benefits Across States
While the exact numbers vary, most state EV policies include the following:
Purchase Subsidy
A per kWh incentive on the battery capacity of the EV. Usually ₹5,000–₹10,000 per kWh for 2-wheelers and 3-wheelers.
Scrappage Incentive
Extra benefits if the buyer scraps their old petrol or diesel vehicle.
Road Tax and Registration Waiver
Most states offer 100% exemption on both charges for EVs.
Charging Station Subsidy
Capital subsidy on equipment and civil work. Some states offer up to ₹10 lakh per public station.
Electricity Tariff Discount
Special per-unit rates for EV chargers, usually lower than standard commercial rates.
Manufacturing Support
Subsidies for factory setup, employment generation, land lease waivers, and GST refunds.
Best Performing States and Their EV Policies (2025)
Let’s take a closer look at India’s leading states in terms of EV policy execution and support.
Delhi
Delhi’s EV policy is considered one of the most progressive and user-friendly in India.
Key Benefits:
- ₹5,000 per kWh subsidy on electric two-wheelers
- Up to ₹30,000 for scooters and bikes
- ₹1.5 lakh subsidy on electric cars (fleet segment)
- ₹30,000 subsidy on electric rickshaws
- ₹5,000 scrappage benefit for retiring old vehicles
- 100% road tax and registration fee exemption
Charging Station Benefits:
- 100% subsidy on installation of 3.3 kW home chargers (up to ₹6,000)
- City-wide plan for 100 EV charging clusters
- All EV chargers must use green electricity
Application Portal:
https://ev.delhi.gov.in
Buyers can apply through dealers; infrastructure players and startups can apply via DDC’s EV cell.
Maharashtra
Maharashtra’s EV policy is focused on both buyers and businesses.
Key Benefits:
- ₹5,000 per kWh subsidy (up to ₹10,000 per vehicle)
- ₹15,000 early-bird incentive (limited-time offer)
- ₹25,000 scrappage incentive
- ₹1 lakh subsidy on electric buses
Charging Infrastructure Support:
- 25% capital subsidy for public charging stations (₹10 lakh max)
- Preference to projects in Mumbai, Pune, Nagpur
Industrial Support:
- Extra incentives based on job creation (₹1 lakh per 100 jobs)
- MIDC land allotment for charging infra and factories
Application Portals:
- EV buyers: via dealers
- Charging infra: https://maitri.mahaonline.gov.in
Tamil Nadu
Tamil Nadu focuses on building industrial EV clusters along with basic buyer benefits.
Key Benefits:
- 100% exemption on road tax and registration fee
- Land inside SIPCOT parks for EV companies
- 15% subsidy on capital investment in machinery
- 50% lease rental rebate for 6 years inside government parks
Charging Station Support:
- Plans for EV corridors along Chennai–Coimbatore
- Charging infra included in urban planning frameworks
Industrial Hubs:
- EV clusters in Hosur, Coimbatore, Salem
- Ola Electric and Ather already operational
Application Portals:
https://sipcot.tn.gov.in
Gujarat
Gujarat has been a pioneer in offering high purchase subsidies and low bureaucratic hurdles.
Key Benefits:
- ₹10,000 per kWh subsidy (2W, 3W)
- Up to ₹20,000 for electric scooters
- ₹50,000 for e-autos, e-rickshaws
- ₹1.5 lakh for electric cars (fleet)
Charging Infra:
- 25% capital subsidy on total cost
- GEDA invited private players through regular tenders
Application Portal:
https://geda.gujarat.gov.in
Subsidies are reimbursed directly after registration and invoice verification.
Karnataka
Karnataka was the first Indian state to publish an official EV policy.
Key Benefits:
- 100% exemption from road tax and registration
- 25% capital support for public charging infra
- 100% stamp duty waiver for EV companies
Industrial Benefits:
- Land in Tumakuru and Harohalli EV parks
- Power subsidy for EV units
- Rent-free land for the first 10 years
Application Portal:
https://investkarnataka.co.in
Telangana
Telangana has developed a solid roadmap for industrial and infrastructure development.
Key Benefits:
- 100% exemption on registration and road tax
- ₹15 lakh per electric bus purchase for public operators
- Capital support for logistics companies using EVs
EV Cluster:
- 800-acre dedicated EV park in Divitipally (Hyderabad)
- MSME and startup focus
Application Portal:
https://tsredco.telangana.gov.in
Andhra Pradesh
Andhra Pradesh offers strong support for both urban EV adoption and rural electrification through mobility.
Key Benefits:
- No registration fee or road tax on any EV
- 25% capital subsidy for EV component manufacturers
- Rental subsidies for EV startups in shared workspaces
Upcoming EV Zones:
- Amaravati and Vijayawada: key charging corridors
- Clusters in Chittoor and Anantapur for factories
Application Portal:
https://apindustries.gov.in
How to Apply for State EV Benefits
For Individual Buyers:
- Visit your RTO or authorized EV dealer
- Ask for FAME and state subsidies upfront
- Submit required documents (ID, address proof, invoice)
- Vehicle is registered with tax and registration fee waiver
For Charging Station Operators:
- Choose location in line with state EV master plans
- Apply for electricity connection through state DISCOM
- Submit project layout and equipment plan
- Claim subsidy post-inspection
For Businesses and Manufacturers:
- Register on your state’s industry portal
- Apply for capital subsidies, tax waivers, land allotment
- Provide project feasibility, investment plan, and employment estimates
Summary Table
| State | 2W Subsidy | Road Tax | Charging Infra Subsidy | Industrial Support |
|---|---|---|---|---|
| Delhi | ₹5,000/kWh | 100% | ₹6,000 per home charger | Moderate |
| Maharashtra | ₹5,000/kWh | 100% | ₹10 lakh per station | Job-based bonuses |
| Tamil Nadu | N/A | 100% | Infra support via SIPCOT | Land + tax waivers |
| Gujarat | ₹10,000/kWh | 100% | 25% CapEx subsidy | EV cluster land |
| Karnataka | N/A | 100% | ₹10 lakh per station | First EV policy state |
| Telangana | N/A | 100% | DISCOM + TSREDCO grants | EV Park in Hyderabad |
| Andhra Pradesh | N/A | 100% | Subsidy via APSEB | Rural infra push |
Final Thoughts
State EV policies are where policy meets the road. Whether you’re an individual looking to save money on your next vehicle or an entrepreneur planning to ride the EV wave, your state’s support can be a game-changer.
Stay updated through your local DISCOM, transport department, or state industry portal. Policies are evolving fast, and early movers often get the biggest benefits.
