UP gets new e-vehicle policy; up to Rs 1 lakh subsidy on buying EVs

LUCKNOW: In an effort to promote electric vehicles for eco-friendly mobility and draw investment in the e-vehicle sector, the state cabinet chaired by chief minister Yogi Adityanath cleared the New Electric Vehicle Manufacturing and Mobility Policy 2022 on Thursday.
Under the policy, incentives will be provided to consumers for purchasing EVs, to manufacturers and to service providers for charging and battery swapping services.
The government has set a target to attract investment of more than Rs 30,000 crore in Uttar Pradesh which will generate employment opportunities (direct and indirect) for over 10 lakh people.
The new policy is aimed not only at developing an eco-friendly transport system but also to make UP a global hub for manufacturing of electric vehicles, batteries and related equipment.
The policy states that a 15% subsidy will be given on factory cost for purchasing two-wheeler EVs, up to maximum Rs 5,000 per vehicle, applicable to the first 2 lakh EVs purchased. Similarly, upto a maximum Rs 12,000 will be provided for three-wheelers, for the first 50,000 EVs. For four-wheelers, a subsidy of up to Rs 1 lakh for the first 25,000 EVs and up to Rs 20 lakh per e-bus for the purchase of the first 400 buses will be provided. A 10% subsidy will be provided on the factory cost of e-goods carriers, upto Rs 1 lakh per vehicle for the first 1,000 e-goods carriers.
It further states that 100% road tax and registration fee will be waived across all segments of EVs during the first three years of the new policy. The exemption will also be provided in the fourth and fifth years of the policy, provided the vehicle has been manufactured in UP.
For the first two ultra-mega battery projects which invest Rs 1,500 crore or more each for setting up battery manufacturing plants in the state with a minimum production capacity of 1 GwH, a capital subsidy of 30% on investment will be given.
The first five Integrated EV projects which invest Rs 3,000 crore or more each for setting up a manufacturing facility in the state for EVs, EV batteries and related components, including research and design and testing facilities, will be provided a capital subsidy of 20%.
A capital subsidy of a maximum of Rs 10 lakh will be given to the first 2,000 charging station service providers while a maximum of Rs 5 lakh capital subsidy will be given to the first 1,000 swapping stations.
At present, UP leads among states with the most number of EVs in the country. It also held the highest share in EV sales in 2021, with the number of units sold across all segments touching 66,701. It was followed by Karnataka with 33,304 units and Tamil Nadu with 30,036 units.
As per industry sources, UP dominated the three-wheeler segment, while Karnataka and Maharashtra led the two-wheeler segment and four-wheeler segment, respectively. In July 2022, the number of EVs on UP roads was 3,37,180, while the total number of EVs in India were 13,34,385. Once again, UP dominated the three-wheeler segment.
For creation of charging infrastructure in the state, the Centre has sanctioned 207 charging stations under FAME II which are being installed in nine cities — Noida, Lucknow, Varanasi, Prayagraj, Kanpur, Aligarh, Saharanpur, Bareilly and Jhansi. More charging stations are expected along the expressways.
The state government is also actively promoting EVs in public transportation with EV buses being rolled out on prominent routes in select cities on PPP mode which includes development of charging stations on these routes as well. A special tariff for EV charging has been notified by the UP Electricity Regulatory Commission.
Powering 'mobility'
| 15% subsidy for purchasing two-wheeler EVs, up to maximum Rs 5,000 per vehicle, applicable on the first 2 lakh EVs purchased
| Up to a maximum Rs 12,000 subsidy for three-wheelers, for the first 50,000 purchased
| A subsidy of up to Rs 1 lakh for the first 25,000 4-wheelers
| Up to Rs 20 lakh per e-bus on purchase of first 400 buses
| A 10% subsidy on the factory cost of e-goods carriers, up to Rs 1 lakh per vehicle for the first 1,000 e-goods carriers
| 100% road tax and registration fee waiver for across all segments of EVs during the first three years of new policy
| Exemption will be provided in the fourth and fifth years of policy provided vehicle has been manufactured in UP.