Maharashtra Cabinet clears ₹66.82 crore extra EV incentive for Bajaj Auto on 27 October, for 66,817 scooters sold past the state cap

The Maharashtra Cabinet, chaired by Chief Minister Devendra Fadnavis, approved ₹66.82 crore in additional incentive for Bajaj Auto on Tuesday, 27 October 2026. The money covers 66,817 electric two-wheelers that Bajaj sold after the ceiling under the Maharashtra Electric Vehicle Policy 2021 had already been exhausted. That policy capped incentive-eligible electric two-wheelers at one lakh for the whole state, and the combined sales of all manufacturers used it up. The Cabinet recorded the extra sanction as a special case, citing Bajaj's contribution to the industrial sector and its investments in Maharashtra.

The mechanism matters more than the headline figure. Under these state policies the manufacturer passes the incentive to the buyer at the time of sale, then claims reimbursement from the government. So a scooter buyer in Pune got a lower price at the counter, and the maker carried the receivable for however long the state took to pay.

Six days earlier, a ₹61.03 crore release

On 21 October 2026 the state announced approval of ₹61.03 crore in incentives under the newer Maharashtra Electric Vehicle Policy 2025, following a committee meeting on 22 September 2026 chaired by the Additional Chief Secretary (Transport). Of that, ₹44.95 crore goes to vehicle manufacturer claims filed through the Maharashtra EV Incentive Portal, ₹5 crore goes to Montra Electric for N2 and N3 category commercial electric vehicles, and ₹11.08 crore reimburses road agencies for toll exemptions given to electric passenger vehicles.

That toll money splits into ₹8.48 crore for MSRDC and ₹2.59 crore for MMRDA, covering free passage for EVs on the Mumbai to Pune Expressway, the Samruddhi Mahamarg and Atal Setu. Worth reading twice: the toll waiver an EV owner enjoys is not free, it is a bill the transport department settles with the road builders later.

The arrears are the real story

Both releases are small against the backlog. EV Mechanica reported in February 2026 that close to ₹3,000 crore in Maharashtra EV subsidies had piled up since FY21-22, with Bajaj Auto owed about ₹100 crore, Mahindra Last Mile Mobility ₹25 crore to ₹30 crore, and Olectra's bus operating arm Evey Trans about ₹860 crore. The same report pinned the delay on coordination and budget allocation between the transport and finance departments.

For a buyer, the practical reading is this. A state purchase subsidy is only as good as the state's cash flow, and when it dries up the maker either absorbs the gap or quietly raises prices. An exemption from tax or toll, by contrast, is applied at the RTO or the toll plaza and does not depend on a claim being cleared.

The Karnataka contrast

Karnataka went the other way. From 2026 the Karnataka Motor Vehicles Taxation (Amendment) Act ended the lifetime tax exemption that electric four-wheelers had enjoyed since 2016, replacing it with slabs of 5 per cent up to ₹10 lakh, 8 per cent from ₹10 lakh to ₹25 lakh, and 10 per cent above ₹25 lakh. Electric two-wheelers stay exempt. Previously registered EVs face a proportionate charge of 93 per cent down to 25 per cent of the applicable tax depending on age.

So a Bengaluru buyer has no counter discount to chase and no reimbursement queue to worry about, but pays more at registration than a Mumbai buyer of the same car. Karnataka expects roughly ₹250 crore a year from the change. Maharashtra, meanwhile, is still paying for scooters sold years ago.

Sources

• Maharashtra Cabinet Approves ₹66.82 Crore Additional EV Incentive For Bajaj Auto Under 2021 Policy As Special Case, Free Press Journal
• Bajaj Auto Gets Rs 66.82 Crore Additional EV Incentive Funding From Maharashtra, Autocar Professional
• Maharashtra Govt Approves ₹61.03 Crore For EV Incentives, ₹11.08 Crore For Toll Exemptions And ₹5 Crore For Heavy EVs, Free Press Journal
• Maharashtra's EV Push Hit by ₹3,000-Crore Subsidy Backlog, EV Mechanica
• Karnataka Ends EV Road Tax Holiday, Introduces Lifetime Tax from 2026, Electronics For You