Uttar Pradesh follows its electric vehicle guidelines. In October, 2022, the state cabinet adopted the Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy 2022. The programme is intended to help private EV consumers and commercial automobiles such as three-wheelers, trucks, and other modes of transportation.
Key pointers of the scheme
The new EV policy unveiled by the Uttar Pradesh cabinet is intended to promote a quicker uptake of electric cars in the state. According to the Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy 2022, purchasers of E3W, electric vehicles, buses, and E2W would get subsidies on the ex-factory price of these vehicles in addition to licensing fees and road tax discounts.
The licensing cost and road fee will be entirely waived for purchasers of electric vehicles. The three-year incentive applies to 50,000 EVs and is effective for that time. Exemptions would no longer be available after the initial three years and would only apply to EVs manufactured in the state and bought and registered there. Furthermore, the subsidy will only be available through distributors for a year starting on the date of the notice.
Benefits according to EV classification
- Electric two-wheeler ex-factory cost would be cut by 15%, bringing it to Rs 5,000. At the cost of roughly Rs 100 crore, the refund will impact up to two lakh E2Ws.
- The advantages of the new EV regulation will also be applied to 50,000 E3Ws. With a spending plan of Rs 60 crore, a 15% discount on ex-factory costs up to Rs 12,000 is available.
- The same 15% discount on ex-factory price would be extended to electric automobiles and SUVs, but only up to Rs 1 lakh. This segment has a budget of Rs 250 crore.
In addition, the programme encourages government workers to purchase EVs, for which the state would provide an advance, according to the statement. The strategy also includes mechanisms to encourage large-scale investments in electric vehicles and battery manufacturing.
The state will grant financial assistance of 30% on expenditure up to a maximum of Rs 1,000 crore for each initiative to the first two mega rechargeable batteries ventures spending Rs 1,500 crore or more each for building up a battery manufacturing factory in the state with a minimum output capability of 1 GWh.
Other benefits provided by the policy
Furthermore, the programme provides manufacturers with stamp duty refunds of up to 100% for the Embedded EV Project and Ultra Mega Battery Project for establishing sites in any part of the state. Stamp duty reimbursement for Mega/Large/MSME enterprises would be 100% in Bundelkhand and Purvanchal region, 75% in Madhyanchal and Paschim Mandi (excluding Ghaziabad and Greater Noida and Noida), and 50% in the region of Noida and Ghaziabad.
The strategy also provides financial assistance to service firms in Uttar Pradesh that establish charging and battery-swapping infrastructure. Furthermore, the state government will assist service providers in establishing public charging network by leasing government property for ten years at a minimal profit-sharing structure of Rs 1 per kWh.
