To speed up EV adoption, Uttar Pradesh government has recently rolled out its new EV policy titled “Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy 2022”. Additionally, this policy seeks to enhance the state’s charging infrastructure and make UP a global hub for electric mobility development. It also aims to make UP a manufacturing hub of EVs, their components like batteries and EV Supply Equipment (EVSE).
With this updated policy, the government expects an investment of around INR 30,000 crores and employment opportunities for more than ten lakhs people. This policy’s primary objective is to make UP important in achieving India’s Net Zero emission target for 2070.
This policy offers vital benefits to a different section of stakeholders. Some key features of the Uttar Pradesh EV Policy 2022 for different areas are as follows:
For EV Buyers
1) A 100% exemption to EV buyers on vehicle registration fees and road taxes. The exemption of road tax will be valid for three years from the policy’s effective date. Buyers can extend these waivers for two additional years if the EV is manufactured in Uttar Pradesh.
2) Offers a 15% subsidy on purchasing a specified number of EVs on the ex-showroom price with a maximum cap on different categories.
- A cap of up to INR 5000 on two lakhs two-wheelers
- A cap of up to INR 12000 on 50,000 three-wheelers
- A cap of up to INR 100000 on 25000 electric cars & 1000 good carriers in the four-wheelers category
- A cap of up to INR 2000000 for 400 electric buses
3) Offers a 50% of admissible subsidy on the purchase of an EV without a battery pack
4) Offers an advance amount by the state government to its employees to facilitate the purchase.
For Building up the Electric Ecosystem
1) Encouraging the PSUs, government institutes and private firms to establish a Centre of Excellence (CoE) for research & development on batteries, EVs and charging infrastructure. The policy offers a 50% grant, up to INR 10 crore each, to five such CoEs.
2) Proposes to shift all government vehicles to EVs by 2030 completely.
3) Proposes to increase the EV demand in the state by encouraging the shift of public transportation to non-ICE-based vehicles.
4) Offers a capital subsidy to service providers developing charging and battery-swapping facilities across Uttar Pradesh.
5) Offers government land on lease for ten years at a nominal revenue sharing model of Re 1/kWh to service providers for setting up
For Boosting Local Manufacturing
1) Offers a capital subsidy to the first two ultra-mega battery projects at the rate of 30 per cent on investment subject to a maximum of INR 1,000 crores per project. These projects must invest atleast INR 1,500 crore or more each for setting up a battery manufacturing plant in the state with a minimum production capacity of 1 GWh.
2) Offers stamp duty reimbursement to the manufacturers at a varying rate of up to 100 per cent, depending on the region, for setting up the Integrated EV Project & Ultra Mega Battery project in the state.
- A 100% stamp duty reimbursement in Purvanchal & Bundelkhand region.
- A 75% stamp duty reimbursement in Madhyanchal & Pashchimanchal (except Ghaziabad and Gautam Buddh Nagar district)
- A 50% stamp duty reimbursement in Ghaziabad and Gautam Buddh Nagar district.
Post the announcement of this policy by the UP government; the EV industry is quite optimistic about the state’s electric and green future.
Leave A Comment