Uttar Pradesh Announces New EV Policy With Incentives

The Uttar Pradesh government has announced its new Electric Vehicle Policy 2022 which brings a host of benefits and special benefits for EV owners. The Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy 2022. The new policy aims to stimulate demand for electric vehicles and focus on encouraging the manufacturing of EVs in the state, as well as building the necessary charging infrastructure. Notably, the UP EV Policy is offering subsidies on the ex-factory cost of electric vehicles, along with the exemption of registration fees and road tax.

Also Read: Delhi Government Adds E-Cycles under EV Policy, Offers Subsidy

Electric cars get a subsidy of 15%, up to Rs. 1 lakh, on th ex-factory cost for 3 years

With respect to purchasing any EV, the registration fee and road tax will be exempted for a period of three years from the notification of the new policy. The exemptions will continue in the fourth and fifth years for EVs that have been produced in the state, apart from being purchased and registered as well.

Meanwhile, EV buyers get a state subsidy of 15 per cent or up to Rs. 5,000 per on electric two-wheelers on the ex-factory cost of the vehicle. The total subsidy allocated for the subsidy is Rs. 100 crore and is expected to benefit about two lakh electric two-wheelers. Meanwhile, electric three-wheelers will get a subsidy of 15 per cent on the ex-factory cost, up to Rs. 12,000. With Rs. 60 crore allocated from the policy budget, the subsidy is expected to help 50,000 electric three-wheelers. For electric cars, the subsidy stands at 15 per cent on the ex-factory cost, or up to Rs. 1 lakh. The policy is allocated a budget of Rs. 250 crore and should benefit 25,000 electric cars.

Electric two-wheelers get a 15% subsidy up to Rs. 5,000 on the ex-factory cost for a period of 3 years

In the electric commercial space, the subsidy stands at 15 per cent or up to Rs. 20 lakh for electric buses and will support about 400 models with a budget of Rs. 80 crore. Electric commercial vehicles or goods carriers will benefit from a 10 per cent subsidy, up to Rs. 1 lakh. The state government has allocated a budget outlay of Rs. 10 crore for 1,000 units. The subsidies though can be availed only once and through dealers.

Furthermore, the UP Government aims to attract an investment of over Rs. 30,000 crore in the state, which will help generate more direct and indirect employment opportunities for millions. To entice battery manufacturers, the state policy is offering a capital subsidy of 30 per cent subject to a maximum of Rs. 1,000 crore per project. The subsidy will be allotted to two projects with an investment of Rs. 1,500 crore or more respectively. The battery manufacturing plant will need to have a minimum production capacity of 1 GWh.

The UP government is offering additional subsidies and even reimbursements to EV makers & battery players

The UP EV Policy also has a provision for 100 per cent stamp duty reimbursement for electric vehicles and battery makers anywhere in the state. On the other hand, projects set up in Madhyanchal and Pashchimanchal will see reimbursement of 75 per cent and 50 per cent in Ghaziabad and Gautam Buddh Nagar districts. The EV Policy also has provisions for developing charging and battery-swapping facilities. The government will provide the land to develop public charging infrastructure on lease for 10 years at a revenue-sharing model of Rs. 1/kWh.