Punjab EV policy targets 25% adoption through comprehensive fiscal and infra support

The Punjab EV Policy focusses on driving faster EV adoption via fiscal incentives and creating provisions for EV charging infrastructure across various segments.

Punjab EV policy targets 25% adoption through comprehensive fiscal and infra support

In a bid to expedite the adoption of electric vehicles, the Punjab EV Policy 2022 aims for 25 percent of annual vehicle registrations to comprise EVs. The policy shall be valid for a period of 5 years from the date of notification with a detailed review to be undertaken annually. 

More than three-fourths (76 percent) of new vehicle registrations in the state comprise two-wheelers (motorcycles, mopeds, and scooters) during 2013-19. This policy aims to increase the share of electric two-wheelers significantly to reach 25 percent of new sales over the policy period. It is also directed towards faster adoption of electric cycles and three-wheelers.

In addition to the incentives under the FAME phase-II scheme, a purchase incentive of Rs 3,000 per kWh of battery capacity shall be provided per vehicle, subject to a maximum incentive of Rs 10,000 per vehicle to the first 1,00,000 registered owners of electric two-wheelers.

Currently, almost 90 percent of the bus fleet in Punjab is diesel based. The policy shall focus on progressively replacing 25 percent of the bus fleet to eliminate old buses in the coming three years. The state will endeavour to participate in any/all e-bus aggregation schemes under the Govt. of India’s FAME phase-II scheme. 

For the electric light commercial vehicles (L5N and N1 category), a purchase incentive of Rs 3,000 per kWh of battery capacity shall be provided to the first 5,000 registered owners of e-LCV (L5N and N1 category vehicles) subject to a maximum incentive of Rs 30,000 per L5N category vehicle, and maximum incentive of Rs 50,000 per N1 category vehicle.

The applicable purchase incentive of Rs 5,000 per kWh of battery capacity (not exceeding Rs 50,000 per vehicle) shall be reserved for the first 2,500 garbage collection vehicles (excluding vehicles applicable for the incentive under; these vehicles could be of L5N and N1 category. 

Sanjay Behl, CEO and Executive Director, Greaves Electric Mobility welcoming the initiative said, “The proposed EV Policy will boost adoption of electric vehicles, especially two and three-wheelers and ensure last-mile mobility for users in the state. The policy has proposed a robust roadmap to boost electric two-wheeler sales by 25 percent, aided by attractive incentives of Rs 3000 per kWh of battery capacity per vehicle to stimulate demand and consumption among aspiring buyers.”

“This is a step in the right direction to creating a sustainable EV ecosystem. The policy gives a much-needed impetus to EV adoption in the state and will encourage more and more EV manufacturers to strengthen their presence and cater to growing demand in the Punjab region,” he added. 

Additionally, there is a large inter-state vehicular movement in Mohali being a part of the tri-city. These cities shall be collectively referred to as ‘Target Cities’ under this policy. With this, e-autos will be given preference for fresh permits in ‘target cities’. Fleet owners will be allowed to obtain and hold e-auto permits subject to guidelines issued by the state transport department.

The idea is to create more jobs and introduce vocational (skilling and up-skilling) and academic training programmes for catering to the human resource needs of the EV ecosystem.

Factoring in the high level of vehicular emissions in major cities – Ludhiana, Jalandhar, Patiala, Amritsar, and Bhatinda that contribute to more than 50 percent of vehicular emissions in the State, the EV Policy is seen as a positive step. The policy intends to bring about a reduction in vehicular emissions by end of the policy, meanwhile creating public and private EV charging infrastructure for the long-term advantage of the goal of establishing the state as a favoured destination for manufacturing electric vehicles, components, and batteries.

Rajiv K Vij, Founder, Plug Mobility welcomed the initiative and said, “The policy would support and encourage EV adoption by corporate customers providing savings in terms of taxes and building the infrastructure required for charging of electric vehicles.”

The Policy also targets a 100 percent transition to electric waste disposal vehicles from existing conventional vehicles during the policy period in the target cities. In support of the transition of waste disposal vehicles, purchase incentives shall be applicable on the first 5,000 vehicles across target cities. To achieve this, the state will develop a proposal to access earmarked funds under the ‘Swachh Bharat Kosh’.

The Government of India formulated a roadmap- the National Electric Mobility Mission Plan 2020 with a vision to facilitate EV sales. As a part of the plan, the FAME (Faster Adoption and Manufacture of (Hybrid &) and Electric Vehicles) pilot scheme was launched in 2015 with the objective to promote electric vehicles. In 2019, the second phase of the FAME scheme (FAME-II) was launched with a much bigger budget to enable demand and infrastructure creation to support the mobility transformation. 

Reports suggest that the success of FAME II coupled with other policy initiatives including state policies would result in EV sales penetration of 30 percent of private cars, 70 percent of commercial cars, 40 percent of buses, and 80 percent of two-wheelers and three-wheelers by 2030. 

Also Read: Heavy Industry Ministry installs over 532 EV charging infrastructure under FAME India Scheme

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