UP Govt Announces New Electric Vehicle Policy-2022

UP Govt Announces New Electric Vehicle Policy-2022

New policy aims to promote faster adoption of clean mobility solutions and create a conducive ecosystem for Electric Vehicles in Uttar Pradesh

Lucknow, Oct 13 (TNA) With the aim to promote faster adoption of environment-friendly clean mobility solutions and create a conducive ecosystem for Electric Vehicles (EVs) in Uttar Pradesh, Uttar Pradesh government has announced State’s New Electric Vehicle Manufacturing and Mobility Policy 2022.

The main objective of the policy is not only to create an eco-friendly transportation system in the state, but also to make Uttar Pradesh a global hub for the manufacturing of electric vehicles, batteries and associated equipment.

With a primary objective to contribute to India’s Net Zero target for 2070, the policy also aims to fulfil State’s aspiration of becoming a trillion-dollar economy by leveraging its potential and opportunities in the EV industry. Therefore, the policy aims at attracting investment of more than Rs 30,000 crore and generate direct and indirect employment for over one million people.

Also, the policy provides an attractive Purchase Subsidy Scheme with a total budget outlay of Rs 500 Crores, which will be notified for a period of one year on all the segments of electric vehicles.

In this direction, the policy provides for three-pronged attractive incentive regime that includes benefits to consumers for purchasing EVs; to manufacturers of EV, EV batteries and related components; and to service providers developing charging/swapping facilities.

Incentives for EV buyers

Since Uttar Pradesh is one of India’s largest consumer market, the policy also provides attractive subsidies to the buyers in order to open up the electric vehicle market in the State. This includes 100% road tax and registration fees exemption during the first three years of effective period of the policy on all segments of electric vehicles purchased and registered in Uttar Pradesh.

The same exemption will apply in the fourth and fifth year also on all segments of EV, if the vehicle is purchased, registered as well as manufactured in Uttar Pradesh. Also, the policy provides an attractive Purchase Subsidy Scheme with a total budget outlay of Rs 500 Crores, which will be notified for a period of one year on all the segments of electric vehicles.

This includes 15% subsidy on factory cost for purchasing two-wheeler EV up to maximum Rs 5,000 per vehicle subject to first 2 lakh EVs purchased; up to maximum Rs 12,000 per three-wheeler EV subject to maximum first 50,000 such EVs purchased; upto Rs 1 lakh per four-wheeler electric vehicle subject to maximum of first 25,000 EVs purchased; upto Rs 20 lakh per E-Bus (Non-Govt) subject to maximum of first 400 such E-Buses; and 10% subsidy on factory cost for purchasing E-Goods Carriers upto Rs 1,00,000 per vehicle to maximum first 1000 E-Goods Carriers purchased.

On the other hand, government employees will be encouraged to buy EVs, for which advance will also be allowed by the State Government. Incentives for EV and EV battery and related component manufacturers. Moreover, the policy provides for enabling provisions to attract big ticket investments

in EV Battery and EV manufacturing. The new policy provides capital subsidy at the rate of 30% on investment subject to maximum Rs 1,000 Crores per project to maximum first two Ultra Mega Battery

Projects, investing Rs 1,500 Crores or more each for setting up battery manufacturing plant in the State of minimum production capacity of 1 GwH.

Similarly, capital subsidy at the rate of 20% subject to maximum Rs 500 crores per project has been provided to maximum of first five 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, including R&D and testing facilities.

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