mumbai the maharashtra government is finalising a policy to encourage manufacturing as well as purchase of electric vehicles according to the draft policy a copy of which was accessed exclusively by et the measures include refunding the state goods and services tax sgst to the manufacturers and offering a subsidy to those buying electric vehicles the state envisages manufacturing of about one lakh electric vehicles per year in the next three to five years officials said as per the draft policy which is likely to be cleared within a month according to officials the state is planning to give a subsidy of 15 of the total price of electric vehicles to the buyers moreover to bring down the retail price of electric vehicles the state is planning not to levy the sgst on the purchase of the vehicles electric vehicles are costlier than conventional ones but they are the need of the hour as they reduce pollution so we have decided to give those buying the vehicles 15 subsidy which will be transferred to their account within three months of purchase said a government official who did not wish to be identified the subsidy is likely to be restricted to the first few lakh customers though officials said although manufacturers such as mahindra mahindra which is planning an electric vehicle plant at chakan in pune wanted a capital subsidy of 30 the state government has refused to accede to the demand and has instead planned to refund the automakers on the sgst for auto components the policy aims to encourage the use of electric vehicles for public transport as well the state is planning a pilot scheme to test electric buses in mumbai pune nagpur thane and nashik the government wants electric vehicles to comprise 5 of the total public transport in the next three to five years officials said government sops measures include refunding sgst to the manufacturers and offering a subsidy to those buying vehicles by krishna kumar et bureau published on dec 5 2017 at 1158 am ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons for reporting foul language defamatory inciting hatred against a certain community out of context spam others report join the community of 2m industry professionals subscribe to our newsletter to get latest insights analysis download etauto app get realtime updates save your favourite articles scan to download app electric vehicles maharashtra electric buses subsidy mahindra mahindra auto mahindra homenewsindustrymaharashtra electric vehicles policy in final stage