India is rapidly moving forward in the EV race, with several states now implementing their own policies. The latest to join the race is Uttar Pradesh. Read to know more about UP’s EV Policy.
Uttar Pradesh EV Policy
In a bid to curb air pollution and move towards greener alternatives, India’s most populated state has now rolled out its very own EV policy, dubbed “Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy 2022”.
Rolled out with an aim to fasten up EV adoption, attract investment, and develop robust charging infrastructure and making the state a global hub for electric mobility, EV and EV Components.
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Highlights of UP’s EV Policy
With ambitious goals in perspective, here are the key highlights of Uttar Pradesh’s EV policy:
Buyer Benefits
To attract consumers into buying EVs, the Govt of UP will offer a 15% subsidy on the price (ex-showroom) of every EV with a capping of Rs 5,000 for 2-wheelers, Rs 12,000 for 3-wheelers, and up to Rs 1 lakh for 4-wheelers. There will also be a subsidy on electric buses with a maximum capping of Rs 20 lakh. This subsidy benefit will however be available only for a specific number of EVs which is 2 lakh for electric 2-wheelers, 50,000 for 3-wheelers, 25000 for cars, and 400 for e-buses. Even in case, a consumer purchases an EV without a battery pack, he/she shall still get 50% of the subsidy.
In addition to subsidy, the purchaser of an EV will also get a complete 100% exemption on road tax and registration fees. However, this exemption on road tax will only be valid for three years from the effective date of the EV policy, which is extendable for two more years if the EV itself is manufactured in UP. Additionally, buyers will also be able to reap the benefit of the FAME II incentives along with tax benefits for first-time EV buyers. For government employees, there will be additional benefits in the form of an advance by the state to purchase electric vehicles.
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Charging and Infrastructure
In a bid to develop robust charging infrastructure, the Govt of UP will promote the development of charging and battery-swapping station at every 25 km gap along highways and expressways. Additionally, the creation of such spaces will also be promoted in metro stations, public places, petrol pumps, corporate buildings, govt. offices, health and educational institutes, malls, markets and other public spaces.
For the same, the Govt. of Uttar Pradesh will provide a subsidy of up to 10 Lakhs per station for the first 20000 stations. There will also be a subsidy of Rs 5 lakh for the first 1000 battery swapping stations as well.
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EV Ecosystem
Steps are also being taken up by the UP Govt. to create an EV ecosystem. For this, the government shall create a demand for EVs by shifting public transport from ICE to EVs, especially in urban areas and clusters.
Moreover, all PSUs, Govt Institutions, and private companies shall be urged and supported to develop the creation of Centres of Excellence in the field of EV/Charging/Battery to facilitate R&D, technology sharing and other ways to help the EV ecosystem to grow including other green mobility solutions. Five such CoEs will also be incentivized with a 50% grant of the project costs up to Rs 10 crores each.
The Govt. has also planned to promote retro-fitted electric vehicles certified by ARAI/iCAT or any other body. For this separate guidelines will be released in due time. Additionally, all government vehicles will be shifted to EVs by 2030.
Local Manufacturing
To push for the manufacturing of batteries in the state, UP Govt. will also offer a capital subsidy of 30% with a maximum capping of Rs 500 crore per project, which will be granted to two projects having an investment of Rs 1,500 crore or more, with at least 1GWh production capacity.
So this was all about UP’s EV Policy. Stay pinned to the GoMechanic Blog for everything automotive.
