Pune: The Mahratta Chamber of Commerce, Industry, and Agriculture (MCCIA) has commended the new electric vehicles (EVs) policy announced by the state government in a new comparative paper with similar policies of other states, but has also pointed out improvements needed, especially with regard to development of EVs.
The MCCIA paper compared the state EV policy with those announced by other states such as Karnataka, Tamil Nadu, and Delhi, among others, with policy proposals for both supply and demand side economics, such as direct subvention for buyers of EVs as well as subsidies for manufacturers of EVs and allied ancillaries and players in the battery and charging market.
The paper specifically praised Maharashtra for proposing to implement both supply and demand verticals, as well as capping the number of vehicles that can be incentivised, which can “nudge” competition among both manufacturers and buyers. The policy also includes incentives for setting up charging facilities, with additional incentives to set them up in rural and underdeveloped areas of the state.
“A policy like this is required when there is a market failure, and in the case of EVs, the market failed because of the costs involved, and so the state government had to step in and create this policy. As a policy, it is really good and progressive, which will boost the market for EVs. The policy of capping the number of vehicles in each class, which will be eligible to receive subventions, will also help in generating competition among manufacturers so that they can get their product out into the market,” said Prashant Girbane, director-general, MCCIA.
Girbane also pointed out potential improvements that can be added with final implementation, especially with regard to research and development.
“Some states provide for specific areas and parks for research and development of electric vehicles. Maharashtra can also provide new facilities, or by boosting existing ones such as the auto cluster in Pune to help in research and development of EVs,” he added.