Odisha enhances subsidy on purchase of electric vehicles

Odisha government on Monday enhanced the subsidy on purchase of electric vehicles in the State. The decision was taken in the cabinet meeting chaired by Chief Minister Naveen Patnaik.

As per a government press release, “This policy was implemented on September 1, 2021, and based on the experience and best practices across the country; it is decided to enhance the subsidy. This will make the policy more progressive and help the State achieve the desired objective and encourage the public to purchase electric vehicles."

The State government implemented the Odisha Electric Vehicle Policy, 2021 effective September 1, 2021, with an objective for adoption of 20% battery electric vehicles by 2025. Under the policy guidelines, various incentives have been declared both for purchasers and manufacturers.

As per the existing policy, the State government has allowed 100 percent exemption of motor vehicles (MV) taxes and also registration fees in respect of all types of battery-operated vehicles (electric vehicles) up to December 31, 2025.

Policy details:

-100 percent exemption of motor vehicle tax and registration fees for electric vehicles (EVs) purchased within Odisha up to Dec 31, 2025

-Transport or non-transport electric vehicle registered in Odisha are exempted from MV tax and registration fees.

-Two-wheeler (2W) EVs: Subsidy is available at 15 percent of the cost of vehicle, subject to a cap of Rs 5,000.

-Three-Wheeler (3W): Subsidy is available at 15 percent of the cost of vehicle, subject to a cap of Rs 10,000.

-Four Wheeler (4W): Subsidy is available at 15 percent of the cost of vehicle, subject to a cap of Rs 50,000.

Electric Buses (e-buses): Subsidy is available at 10 percent of the cost of vehicle, subject to a cap of Rs 2,00,000 for non-AC, Rs 3,00,000 for AC, and Rs 4,00,000 for AC deluxe buses.

Goods Carrier: Individual and fleet owners shall be given a purchase incentive of Rs 30,000 for the first 5000 electric goods carriers to be registered in Odisha.