With multiple Indian states scampering to tackle pollution issues with pro-Electric Vehicle policies, the latest to join the bandwagon is the Uttar Pradesh government, with a draft bill that can significantly reduce ownership costs for new Electric Vehicle owners and incentivize EV investments in the state. The bill is supposed to take effect this year and remain effective until 2027.
The policy is in line with the state’s vision of becoming a powerhouse EV production hub by the year 2030 and has numerous incentives in place for prospective Electric Vehicle owners and companies looking to invest in the state with manufacturing and subsidiary units. Along with discounts on vehicle registration and road taxes, the policy also welcomes large investments in the state and plans to install adequate infrastructure for Electric Vehicle production and use.
For those looking to purchase electric vehicles in UP, the new bill promises a complete relaxation of the vehicle registration costs and road taxes for the first three years following the implementation of the bill. During the final two years, while the bill stays in effect, a discount of 50% will be provided. This will effectively half the cost of vehicle registration and road taxes for later adopters.
In addition, for a year since the date when the policy comes into effect, the state will also provide a 15% discount, with a maximum value of Rs. 5000, on the purchase of an electric two-wheeler. This discount will be applied to the factory price of the purchased vehicle. There is also mention of a 15% rebate on the purchase of electric cars and buses.
Details regarding benefits promised to investors and EV companies are yet to emerge. However, considering the benefits provided by other states that have been able to attract Electric Vehicle investments, they can be surmised to be substantial.
One big move detailed in the policy involves converting the entire fleet of government vehicles to EVs by the year 2030. In addition, the bill also has measures in place to convert the entire public transportation system in both urban and rural areas to electric vehicles in the same time frame.
To this effect, the government will be creating and marking a series of “green routes” which will be used to ply electric buses. To support this electrification, the government will help in setting up charging stations all over the state, with one operational station every 25 kilometers in expressways in the state, and one station for every 9-kilometer radius in urban areas. To encourage this, the state government will be offering land for the charging stations on a ten-year lease, with a substantial subsidy of 20% with a maximum amount of Rs. 10 lakhs for the first 2000 charging station leases.
Apart from this, charging stations will also be set up in major high-footfall areas, including government buildings, petrol pumps, metro stands, bus stands, commercial buildings, schools, colleges, hospitals, malls, and large parking lots.
Awareness is a major part of adoption when it comes to EVs in India. Therefore, the UP government has provisions in the bill to start the Go Electric campaign, an initiative to encourage people to take up electric vehicles. This initiative will spread education and awareness about the benefits of Electric Vehicles and will be run by a special 12-member committee. This committee will operate under the Industrial Development and Infrastructure Commissioner and will be responsible for the smooth implementation of the bill.
Importantly, all government officials will also be encouraged to adopt electric vehicles for official and personal use and the state government will also issue an advance payment for those purchases.
Overall, this is a great starting point for the state to adopt mature, productive Electric Vehicle policies and become a major player in the Electric Vehicle market during this boom period.