A significant boost for the electric vehicle sector in the state has been announced by the Uttar Pradesh Government by extending its Electric Vehicle Manufacturing and Mobility Policy till 2027. According to the CNBC report,it extends the availability of subsidies and incentives outlined in the policy for an additional three years. The original policy, launched in October 2022, directs to aid clean mobility solutions and set up a supportive environment for EV adoption in Uttar Pradesh. This addition comes after the state recently spared all hybrid vehicles from road tax and registration fees, presenting significant cost savings to buyers. Industry experts had expected an addition of the EV policy giving the latest hybrid vehicle inducement.
Under this scheme, the UP government is presenting a financial aid of Rs 5,000 for two-wheelers and up to Rs 1 lakh for fully-electric cars. At the time of foundation of this policy, the UP government has alloted Rs 100 crore to subsidise 200,000 two-wheelers and Rs 250 crore for four-wheelers. Besides, the program gives Rs 20 lakh for private electric buses and Rs 12,000 per electric three-wheeler.
UP EV Policy: Three-Pronged Approach to Boost EV Ecosystem
The New Electric Vehicle Manufacturing and Mobility Policy, 2022, takes a miscellaneous outlook to motivate EV acquisition. The policy presents inducements for three key groups:
- Consumers: The policy offers economic interests to individuals who buy EVs, making them more affordable.
- Manufacturers: Manufacturers of EVs, batteries, and related constituents can aid finance allowances and engraves duty compensations, encouraging expenditure and construction within the state.
- Service Providers: The policy motivates the expansion of charging and switching frame by providing subsidies to service suppliers.Besides, the government facilitates land acquirement for public charging stations at slightest cost.
This global approach goals to create a powerful EV ecosystem in Uttar Pradesh, fascinating investments surpassing Rs 30,000 crore and leading over a million jobs. The policy’s specialized incentives involves:
- Financial subsidy of 30% on expenditure , crowned at Rs 1,000 crore per project, for the first two revolutionary vast battery projects with a minimum construction capacity of 1 GWh.
- Imprint duty compensation for EV project and battery plant setups, varying from 50% to 100% depending on project size and location.
- Financial subsidy for service providers developing charging and switching framework.
- Government land on contract for a formal fee to set up public charging stations.
With the addition of the policy till 2027, the Uttar Pradesh government determines its dedication to accelerating EV approbation and nurturing a justifiable conveyance future for the state.
Under the scheme, electric two-wheelers get an allocation of Rs 5,000, while 4-wheelers are able for a stimulus of Rs 1 lakh, according to the government notification. The government has kept aside Rs 100 crore for two-wheelers with an aim of subsidising 200,000 vehicles, while for 4-wheelers it has a budget of Rs 250 crore. The project also provides a subsidy of Rs 20 lakh for private electric buses and Rs 12,000 per vehicle for e-three-wheelers.
