In order to achieve large scale adoption of electric vehicles (EV) in Odisha, the state government on Friday (September 17) announced to set up an 'Electric Vehicle Fund' to provide a variety of incentives to people buying electric vehicles.
The government will offer incentives on the purchase and use of the vehicles for the next four years as envisaged under the 'Odisha Electric Vehicle Policy 2021, the State Commerce and Transport Department informed in a press release.
As per the earlier announcement, the state government will provide a flat 15 per cent subsidy on every purchase of electronic vehicles of all types. The maximum limit of the subsidy for purchasing a two-wheeler has been capped at Rs 5000 while the amount for three-wheeler and four-wheeler has been restricted to Rs 10, 000 and Rs 50, 000 respectively.
Moreover, the government will provide a flat 10 per cent subsidy on purchasing of electric bus subject to a limit of Rs 4 lakh while the cap of subsidy on purchasing goods and carrier vehicles has been fixed at Rs 30, 000.
As per the chalked out plans, the Odisha government will relax up to 5% interest on the loan amount if a person purchases an EV for personal use on loan. The government has also plans of exempting the registration fees of electric vehicles and Motor Vehicle Tax for a certain period.
The EV manufacturing companies will get 100 per cent net SGST exemption and under the Micro, Small and Medium Enterprise (MSME) policy 2021, micro and small enterprises manufacturing batteries will also be encouraged by the government.
As per startup policy, the battery manufacturing enterprises will get the required assistance from the government. Moreover, concession on parking fees will be provided for electric vehicles across the cities while the customers will also get a discount at vehicle charging stations for charging their vehicles.
With a view to cut down carbon emissions, the Odisha Cabinet in August had approved the Electric Vehicle Policy 2021. Odisha became the 10th state in the country to have a full-fledged policy for the ambitious project.