Odisha sees rise in Electric Vehicle registrations, Rs 232 crore distributed in subsidy

Odisha has experienced a notable rise in electric vehicle (EV) registrations, informed Transport Minister Bibhuti Bhushan Jena. Responding to a question from Baramba MLA Bijaya Kumar Dalabehera during the question hour of Odisha Legislative Assembly budget session, Jena revealed that subsidies amounting to Rs 232.45 crore have been distributed, benefitting 1,22,578 individuals under the Odisha Electric Vehicle Policy 2021.

Figures to Date:

As of 6 March 2025, Odisha registered 8,581 electric two-wheelers, 965 electric three-wheelers, 854 electric four-wheelers, and 73 electric buses. The inquiry sought specifics regarding the disbursed subsidies and the vehicle registration totals linked to this scheme.

The Odisha Electric Vehicle Policy 2021 aims to promote eco-friendly transportation alternatives, reflecting a wider trend across India to embrace sustainable transport solutions.

Key Fiscal Incentives:

The policy offers: -Purchase subsidies: 15% for 2W (max Rs 5,000), 3W (max Rs 12,000), 4W (max Rs 1,00,000), and 10% for e-buses (max Rs 2 million) - Goods carriers: Rs 30,000 incentive for first 5,000 registrations - Tax benefits: 100% exemption on road tax/registration fees + SGST reimbursement for EVs sold in-state - Employee loans: Interest-free financing for government staff.

Manufacturing Ecosystem:

Supports EV component production through: - MSME Policy 2016 benefits for battery makers - Capital subsidies/tax breaks for Li-ion battery plants - Collaboration with national FAME-II scheme incentives - Special zones for EV manufacturing clusters.

Policy Overview:

The Odisha Electric Vehicle Policy 2021 was approved on August 27, 2021, with a five-year validity period to accelerate EV adoption and manufacturing. It targets 20% battery electric vehicle penetration in all new vehicle registrations by 2025 while addressing climate concerns through transport sector decarbonization