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Incentives for electric vehicle manufacturers, buyers in UP – The Indian Express

THE UTTAR Pradesh government on Thursday announced a New Electric Vehicle (EV) Manufacturing and Mobility Policy, 2022, to promote faster adoption of clean mobility solutions and create a conducive ecosystem for EVs in the state, an official release said on Thursday.
The policy is aimed at attracting investment worth around Rs 30,000 crore in the sector and promoting faster adoption of EVs in the state along with development of an “eco-friendly” transport system, said a statement.
The policy provides a three-pronged incentive regime: For manufacturers, for consumers on sale and even for service providers providing charging or battery-swapping services. With these incentives, which include 100 per cent road tax and registration exemption for the first three years of the policy, government employees would be encouraged to buy electric vehicles by offering them advance, the statement added.
“This policy will help in promotion of EVs and will also reduce dependency on diesel and petrol, helping in improving air quality,” said Cabinet Minister Suresh Khanna. He added that in the first phase, the policy would be implemented in 17 districts of the state and would be extended to other districts later.
On the purchase of EVs, the Uttar Pradesh government has offered discounts on purchase of the first two lakh two-wheelers, first 50,000 three-wheelers and first 25,000 four-wheelers.
While subsidy of 15 per cent will be given on factory cost for purchasing two-wheeler EV up to maximum Rs 5,000 per vehicle.
This would be offered to the first two lakh two-wheeler electric vehicles purchased. Then, discounts up to maximum Rs 12,000 per three-wheeler EV would be offered up to maximum of first 50,000 such EVs purchased. Then, on purchase of four wheeler, the policy offers up to Rs 1 lakh discount, which would be subjected to maximum first 25,000 such EVs purchased.
The policy also offers substantial discounts on purchase of private electric buses in the state, offering subsidy of up to Rs 20 lakh per e-bus (private), which would be applicable to the first 400 such e-buses purchased. Then, 10% subsidy has been offered on factory cost for purchasing e-goods carriers, which would be upto Rs 1,00,000 per vehicle and would be provided up to a maximum of first 1,000 carriers.
The policy also offers 100 per cent road tax and registration fee exemption on the purchase of all categories of electric vehicles for the first three years from the date the policy would be effective. After the first three years, the policy offers to continue the exemptions in fourth and fifth year on electric vehicles manufactured in the state.
To encourage government employees to buy EVs, the policy offers to allow advance for the same by the state government. Providing incentives for Electric Vehicle and EV battery as well as related component manufacturers especially big investments, policy provides capital subsidy at the rate of 30 per cent on investment subjected to maximum Rs 1,000 crore per project, which will be provided to maximum first two “Ultra Mega Battery Projects” investing Rs 1,500 crore or more each for setting up battery manufacturing plant in the State of minimum production capacity of 1 GwH.
Then similar capital subsidy has been provided for maximum first two Integrated EV Projects investing Rs 3,000 crores or more each for setting up a manufacturing facility in the State for EV, EV Battery and related component manufacturing,
Then, first five Mega EV projects investing Rs 500 crore or more each and first 5 Mega EV Battery projects investing Rs 300 Crores or more are being provided capital subsidy at the rate of 20% on investment.
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Maulshree SethMaulshree Seth is an Assistant Editor at The Indian Express… read more