New Maha EV Policy Is Realistic. It Just Needs Swift Action

This new policy, with its range of incentives, infrastructure investments and environmental targets, is expected to accelerate EV uptake in a currently sluggish ecosystem. This new policy will remain in effect until March 31, 2030, replacing the earlier 2021 policy which expired in March 2025. The efficacy of this ambitious plan, however, hinges on accurate co-ordination between different agencies and continuous evaluation. 

Toll Relaxations, Financial Incentives: Reducing EV Cost

A standout feature of this policy is the 100 per cent toll relaxation for electric 4-wheelers and buses on major expressways, including the busy Mumbai-Pune Expressway, the newly-constructed Atal Setu and the Samruddi Mahamarg, for the next five years.

EVs will also receive a 50 per cent toll waiver on highways maintained by the Public Works Department. The set of incentives stated below aims to lower the total cost of ownership, thus making EVs more accessible to a wider demographic.

Range Anxiety

The question of range anxiety has been effectively addressed by investing in charging infrastructure. The policy has mandated the installation of charging stations every 25 km along state and national highways. The government also plans to tie up with oil companies to equip existing and upcoming fuel stations with EV chargers. 

This initiative is in line with the study done by International Council on Clean Transportation (ICCT), where their findings emphasised on the need for having robust charging infra to support the ambitious EV targets in India. The success of this plan, however, depends on how the challenges related to grid robustness, land acquisition and charging stations are maintained.  

Local Manufacturing and R&D

Similar to the Centre's Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI), the Maharashtra EV policy encourages local manufacturing by incentivising production units, battery recycling facilities and skill development programmes. This is in line with the goal of positioning Maharashtra as a capable manufacturing hub and attract both local and international investments. 

The emphasis on localisation is apt, since Tesla is eyeing India as a strategic market and Tamil Nadu is leading the way for EV investments. With the SPMEPCI scheme demanding a steep tariff relief turnover of Rs 2,500 crore in Year 2, to Rs 7,500 crore by Year 5, Maharashtra has taken a more inclusive path — easing the burden on homegrown firms and backing MSMEs and startups to spark innovation and create jobs. 

Beyond Reducing Emissions

Road transport accounts for the second-largest pollution share, amounting to 37.7 MMT of GHGs in 2022; around 2.2 per cent of the state’s total emissions. The new policy aims to cut 1MMT of GHGs and 32 tonnes of PM2.5 BY 2030, but it neglects a key blind spot: The environmental impact of EV batteries, from disposal to recycling. While emissions may seem to be reducing on paper, but without a circular action plan, the real gains remain doubtful. 

From Figure 3 it can be seen that Maharashtra’s vehicular emissions dipped significantly in 2020-21. This can most likely be attributed to Covid lockdowns. The numbers have since risen exponentially and are projected to hit 43.55 MMT — a 19 per cent jump from the pandemic lows and 6.7 per cent above pre-Covid levels.

ICE vehicles still continue to dominate, despite the EV push. They account for 92 per cent of new vehicle sales, with EVs growing at just 7.9 per cent in 2024-25 projections.

A 1MMT emissions reduction goal stated in the policy, won’t move the needle of ICE vehicle growth. To stay on track, Maharashtra will have to move beyond adoption and embrace the second-life of battery use, like Log9’s storage models, and integrate circular economy fundamentals and clear targets into the policy itself. 

Implementation & Foresight

Maharashtra’s 2025 EV policy is a solid guideline for sustainable mobility and could pave the path for other states to follow suit. Its success however hinges on sharp execution and dynamic adaptation by policymakers.

Agora Verkehrswende, a German think tank, in its case study for Maharashtra, has suggested the creation of a dedicated task force to monitor progress, troubleshoot bottlenecks and ensure accountability for sharp execution.

But more needs to be done to expand charging infrastructure, particularly in rural and semi-urban pockets. Targets have already been set for Greater Mumbai and Pune, but functionality and accessibility need to be given precedent.

Additionally, disbursing subsidies transparently is another key pillar to curb misappropriation of public funds. A single window clearance mechanism thus becomes paramount. 

Lastly, robust battery recycling and disposal norms needs to be integrated into the larger policy framework and this needs to be fast-tracked to avoid offsetting air pollution for landfill hazards. Maharashtra’s 2025 EV policy looks not just optimistic but realistic. It just needs to be backed by swift inclusive action. 

(The writer is a public policy and urban transportation enthusiast. Views are personal)