The Yogi Adityanath-led government in Uttar Pradesh has announced a bold move towards promoting the adoption of electric vehicles (EVs) by offering incentives to prospective buyers.
The Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy 2022 aims to significantly boost EV use in the state by providing attractive incentives to both EV buyers and manufacturers.
Important updates on the UP EV policy
Effective October 14, 2022, the Uttar Pradesh government has decided to exempt road tax and registration fees for three years on the purchase of EVs. This exemption will also be extended to EVs manufactured in the state for a validity of five years.
The policy offers a 100 percent tax waiver on EVs sold and registered in the state from October 14, 2022, to October 13, 2025. In the fourth and fifth year of the policy’s effective period, from October 14, 2025, to October 13, 2027, a 100 percent rebate on EVs manufactured, sold, and registered in the state will be provided.
The incentives provided by the Uttar Pradesh Government are in addition to the subsidies provided by the Central Government for the purchase of EVs, ultimately reducing the cost of two-wheelers by Rs 15,000 to Rs 20,000 on-road and cars by up to Rs 1 lakh.
The policy covers all automobiles that use electric motors powered by batteries, ultracapacitors, or fuel cells, including two-wheelers, three-wheelers, four-wheelers, Strong Hybrid Electric Vehicle (HEV), Plug-in Hybrid Electric Vehicle (PHEV), Battery Electric Vehicle (BEV), and Fuel Cell Electric Vehicle (FCEV).
Electric vehicles running in Uttar Pradesh
This move will provide significant relief to the 3,997 EV owners in Agra who have already paid taxes and registration fees between October 14, 2022. Currently, 11,340 EVs are registered with the Divisional Transport Office (RTO) of Agra, of which 3,997 vehicles were bought after October 14, 2022. These include 437 e-rickshaws, 30 cars, and the remaining two-wheelers.
Subsidy on different vehicles
The policy also offers a 15 percent subsidy on the factory price of EVs purchased in Uttar Pradesh.
This subsidy includes Rs 5,000 per vehicle for the first two lakh electric two-wheelers, a maximum of Rs 12,000 for the first 50,000 electric three-wheelers, and up to Rs 1 lakh per vehicle for the first 25,000 electric four-wheelers.
In addition, a subsidy of up to Rs 20 lakh per e-bus will be given on the first 400 buses purchased in the state. Moreover, a maximum of 1,000 e-goods carriers will be given a subsidy of 10 percent on the factory price for the purchase of e-goods carriers up to Rs 1,00,000 per vehicle.
Writer’s Note The Uttar Pradesh Government will also encourage its employees to buy electric vehicles by allowing them to take an advance.
These measures are expected to promote the use of EVs in the state and ultimately contribute towards reducing carbon emissions and promoting sustainable mobility. The policy offers a comprehensive solution to promote the use of EVs, and its implementation will undoubtedly have a positive impact on the environment and the economy of the state.
