The Odisha government in India has announced a significant increase in subsidies for the purchase of electric vehicles (EVs) in the state. As part of the amended Electric Vehicle Policy-2021, the maximum subsidy on the purchase of two-wheelers will see an increase of Rs 20,000, while three-wheelers and four-wheelers will receive Rs 30,000 and Rs 1.5 lakh, respectively. This move comes in response to the low adoption rate of EVs in the state, with only 4.48% of EVs registered by the end of 2022, falling short of the targeted 20% adoption rate by 2025.
Odisha amends electric vehicle policy, hikes two-wheeler subsidy to Rs 20k.
The Odisha government has amended its Electric Vehicle Policy-2021, significantly increasing the subsidy on the purchase of electric vehicles. The state government will now provide a maximum subsidy of Rs 20,000 for the purchase of electricity-powered two-wheelers, while three-wheelers will receive a subsidy of Rs 30,000 and four-wheelers will receive a subsidy of Rs 1.5 lakh.
The state government had earlier introduced the “Odisha Electric Vehicle Policy, 2021” to promote the adoption of electric vehicles and reduce vehicular pollution. However, with only 4.48% of electric vehicles registered by the end of 2022, the state government found that it was falling short of its target of achieving 20% adoption of electric vehicles by the end of 2025.
To address this shortfall, the state government has now increased the purchase incentives available under the policy. The amended policy will be effective during the policy period.
In addition to the increased purchase incentives, the state government has also allowed for 100% exemption of motor vehicle (MV) taxes and registration fees for all types of battery-operated vehicles (electric vehicles) up to December 31, 2025. This move aims to further incentivize the adoption of electric vehicles in the state.
The increased incentives and exemptions will boost the adoption of electric vehicles in the state, helping to reduce the levels of vehicular pollution. With the amended policy, the state government is hoping to achieve its target of 20% adoption of electric vehicles by the end of 2025.
Electric vehicles have become an increasingly popular option in recent years due to their lower emissions and lower operating costs. The Odisha government is promoting incentives that are sure to encourage more consumers to switch to electric vehicles in the coming years.
Overall, the amended Electric Vehicle Policy-2021 is expected to have a significant impact on the adoption of electric vehicles in Odisha. The state government’s efforts to promote electric vehicles are likely to serve as a model for other states in India, as they too seek to reduce vehicular pollution and promote sustainable transportation.