Uttar Pradesh's new EV policy to provide extensive array of subsidies; Know all about it here

Uttar Pradesh's new EV policy to provide extensive array of subsidies; Know all about it here

A wide array of subsidies for EV purchasers, battery charging/swapping service providers and manufacturers of the field will soon be available.

Contributing to the national endeavour of boosting e-mobility, the UP government has finally given a nod to the Electric Vehicle Manufacturing and Mobility Policy 2022. They plan to create a more streamlined ecosystem for electronic vehicles in Uttar Pradesh. As per the EV policy, the state government will provide incentives for public, EV-related manufacturers and service providers.

Uttar Pradesh Electric Vehicle manufacturing and mobility Policy, 2022

The Uttar Pradesh EV Policy, 2022 was approved by the UP government during the UP Global Investors Summit and the policy will be effective for the next 5 years.

As per the policy, the state government has announced a wide array of incentives which cater to the consumers for purchasing EVs, the manufacturers of EVs and related components and for the service providers who seek to develop battery charging/swapping facilities.

Incentives for EV buyers

  • The policy will be effective from this year itself, and during the first three years, 100% road tax and registration fee on the purchase of any e-vehicle in the state will be exempted.

  • A subsidy of 15% will be offered on the ex-showroom price for the electric two-wheelers with a max cap of ₹5000, subject to the first 2 lakh E2W units purchased.

  • Similarly, a subsidy up to ₹12,000 will be sanctioned for electric 3-wheelers, subject to the first 50,000 units.

  • Electric 4-wheeler and goods carrier purchasers will be entitled to a subsidy up to ₹1 lakh for the first 25,000 small vehicles and for the first 1000 carriers respectively.

  • At the same time, a subsidy up to ₹20 lakh will be sanctioned for the purchase of private e-buses, subject to the first 400 units.

Incentives for manufacturers and EV service providers

  • The EV service providers will also be benefitted during the policy period as the first 2000 charging stations in the state will receive a capital subsidy of 20% or up to ₹5 lakh.

  • On the other hand, the first 1000 swapping stations in the state will also receive a similar capital subsidy of 20% or up to ₹5 lakh per station.

  • Furthermore, the land for charging/swapping will be leased at ₹1/kWh in a revenue-sharing model to give a boost to the service providers.

  • The state government has also eyed to attract manufacturers by providing huge incentives for setting up manufacturing units in the state.

  • As per the policy, the first five EV projects with an investment of ₹3000 and more will be given a subsidy of 20% or up to ₹500 crore for setting up centralized manufacturing units of EVs, EV-related components, batteries and R&D/testing facilities in the state.

Reportedly, the government has projected that the move will not only create a more eco-friendly transport system in the state but will also draw global manufacturers of EVs and related equipment.

It is also being expected that this could generate as many as 10 lakh direct/indirect employment opportunities in the EV sector.

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