The State Cabinet of Uttar Pradesh has approved the new Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy 2022. The new UP EV Policy 2022 aims to benefit both both the private buyers of EVs and also the buyers of commercial electric vehicles like three-wheelers, buses and other transport vehicles.
New UP EV Policy 2022: Summary
- Buyers investing in EVs will get a 100 percent exemption from the registration fees and road tax. The subsidy is valid for three years and will be applicable for 50,000 EVs. After the three-year tenure, the exemptions would only apply to EVs manufactured in the state, in addition to being purchased and registered in UP as well. Additionally, the subsidy will be provided through dealers for just one year from the date of notification.
- Electric two-wheelers will carry a 15 percent discount on ex-factory costs, up to Rs 5,000. Up to 2 lakh, E2Ws will benefit from the subsidy with a total budget of Rs 100 crore.
- The new EV policy benefits will also be extended to 50,000 E3Ws. Subsidy of 15 percent on ex-factory cost, up to Rs 12,000 with a budget outlay of Rs 60 crore.
- In terms of electric cars and SUVs, the same 15 percent subsidy on ex-factory cost will be offered limited to Rs 1 lakh. The budget outlay for this category is Rs 250 crore.
- Subsidy support for 4000 electric buses has been extended as well with a budget outlay of Rs 80 crore. The 15 percent ex-factory subsidy is capped at Rs 20 lakh.
- Subsidy on ex-factory cost for electric CVs and goods carriers is lower, at 10 percent, up to Rs 1 lakh. Budget outlay for this segment is set at Rs 10 crore and 1,00 units.
With this new EV policy, UP has joined the ranks with other union territories and states encouraging faster adoption of electric vehicles across the country. As per India’s 2030 EV targets, the central government aims to achieve 30 percent penetration for electric PVs, 70 percent for CVs and 80 percent for E2W and E3W. The adoption-friendly policies will play a major role in achieving these targets.