Uttar Pradesh (UP), India’s most populated state, has rolled out its new electric vehicle (EV) policy called “Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy 2022”. The aim of this updated policy is to promote the faster adoption of EVs, enhance the charging infrastructure, and attract investments in the state to make UP a global hub for electric mobility development and manufacturing of Electric Vehicles (EVs), EV components, EV Batteries/ Fuel Cells and other EV Supply Equipment (EVSE).
Here are the key highlights of Uttar Pradesh’s new electric vehicle policy 2022: –
Benefits for EV Buyers
– The Govt of Uttar Pradesh (UP) will offer a 15% subsidy on the ex-showroom price of the EV, with a maximum cap of up to Rs 5,000 for electric 2-wheelers, up to Rs 12,000 for electric 3-wheelers, up to Rs 1 lakh for electric 4-wheelers & good carriers, and up to Rs 20 lakh for electric buses. All these purchase subsidies will be provided for a specified number of EVs, which is 2 lakh for electric 2-wheelers, 50,000 for 3-wheelers, 25000 for electric cars, 400 for e-buses and 1000 for electric good carriers.
– In case the buyer purchases an EV without a battery pack, only 50% of the admissible subsidy will be provided.
– In addition, a 100% exemption will also be provided on vehicle registration fees and road taxes. But it is worth noting that this waiver on road tax will be valid for three years from the effective date of this EV policy. However, if the EV is manufactured in UP then the exemption will be extended for two additional years.
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– Apart from the above-mentioned scheme, buyers will continue to benefit from the central government’s FAME II incentives, which provide a subsidy of Rs 10,000 per kWh of the battery capacity with a maximum limit of up to Rs 1.5 lakh for electric cars and Rs 15,000/kWh with a maximum limit of 40% of the cost of the vehicle for electric two-wheelers, along with tax benefits for first time EV buyers.
Additional Benefits For Government Employees
The state government employees will be allowed for an advance by the state to purchase electric vehicles.
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Strengthening EV-Compitable Infrastructure
– To enhance the charging & battery-swapping infrastructure in the state the govt will promote the development of such stations every 25kms along Expressways/ Highways. It will also promote charging & battery swapping facilities in public parking spaces, metro stations, bus depots, fuel pumps, govt offices, corporate buildings, educational & health institutes, shopping malls & other commercial areas, group housing societies and RWAs, gram sabha land, etc. For this, the state government will provide a subsidy of up to Rs 10 lakh per station for the first 2,000 EV charging stations. Besides, a subsidy of up to Rs 5 lakh per station will also be granted to the first 1000 battery swapping centres.
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Ecosystem Support
– The Government of Uttar Pradesh (UP) shall induce demand for EVs in the region by encouraging the shift of public transportation to non-ICE-based vehicles and promoting faster adoption of EVs in the state, particularly in the urban areas.
– Government institutions, Public Sector Undertakings (PSUs), and private companies shall be urged to establish Centres of Excellence (CoE) in the area of EV/ Battery / Charging to facilitate R&D, testing, technology acquisition and other facilities to support the EV ecosystem, including non-fossil fuel-based mobility solutions. Five such CoEs will also be incentivized with a 50% grant of the project costs up to Rs 10 crores each.
– The government will also promote retro-fitted electric vehicles in the state certified by ARAI/iCAT or any other recognized institution. Separate guidelines will be issued in this regard.
– All government vehicles will be shifted to electric by 2030.
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To Boost Local Manufacturing
– To encourage the manufacturing of batteries in the state, the Uttar Pradesh government is offering a capital subsidy of 30% with a maximum limit of up to Rs 500 crore per project. This grant will be obtainable to two projects having an investment of Rs 1,500 crore or more. Also, the manufacturing plant will need to have at least 1GWh production capacity.
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