The Uttar Pradesh government has announced a significant boost for the electric vehicle (EV) sector in the state by extending its Electric Vehicle Manufacturing and Mobility Policy till 2027. As reported by CNBC TV, extends the availability of subsidies and incentives outlined in the policy for an additional three years.
The original policy, launched in October 2022, aimed to promote clean mobility solutions and establish a supportive environment for EV adoption in Uttar Pradesh. This extension comes after the state recently exempted all hybrid vehicles from road tax and registration fees, offering significant cost savings to buyers. Industry experts had anticipated an extension of the EV policy given the recent hybrid vehicle incentive.
Under this scheme, the UP government is offering a subsidy of Rs 5,000 for two-wheelers and up to Rs 1 lakh for fully-electric cars. At the time of inception of this policy, the UP government has allocated Rs 100 crore to subsidise 200,000 two-wheelers and Rs 250 crore for four-wheelers. Additionally, the program offers Rs 20 lakh for private electric buses and Rs 12,000 per electric three-wheeler.
UP EV Policy: Three-Pronged Approach to Boost EV Ecosystem
The New Electric Vehicle Manufacturing and Mobility Policy, 2022, takes a multi-faceted approach to encourage EV adoption. The policy offers incentives for three key groups:
- Consumers: The policy provides financial benefits to individuals who purchase EVs, making them more affordable.
- Manufacturers: Manufacturers of EVs, batteries, and related components can avail capital subsidies and stamp duty reimbursements, promoting investment and production within the state.
- Service Providers: The policy incentivizes the development of charging and swapping infrastructure by offering subsidies to service providers. Additionally, the government facilitates land acquisition for public charging stations at minimal cost.
This comprehensive approach aims to create a robust EV ecosystem in Uttar Pradesh, attracting investments exceeding Rs 30,000 crore and generating over a million jobs. The policy’s specific incentives include:
- Capital subsidy of 30% on investments, capped at Rs 1,000 crore per project, for the first two ultra mega battery projects with a minimum production capacity of 1 GWh.
- Stamp duty reimbursement for EV project and battery plant setups, ranging from 50% to 100% depending on project size and location.
- Capital subsidy for service providers developing charging and swapping infrastructure.
- Government land on lease for a nominal fee to establish public charging stations.
With the extension of the policy till 2027, the Uttar Pradesh government demonstrates its commitment to accelerating EV adoption and fostering a sustainable transportation future for the state.
Under the scheme, electric two-wheelers get a subsidy of Rs 5,000, while 4-wheelers are eligible for an incentive of Rs 1 lakh, according to the government notification. The government has kept aside Rs 100 crore for two-wheelers with a target of subsidising 200,000 vehicles, while for 4-wheelers it has a budget of Rs 250 crore. The scheme also provides a subsidy of Rs 20 lakh for private electric buses and Rs 12,000 per vehicle for e-three-wheelers.
