Bihar Electric Vehicle Policy 2019

    Bihar Electric Vehicle Policy 2019 is aimed at the creation of a manufacturing eco-system for e-vehicles in the State, fulfill Sustainable Development Goals in the transport system, and make Bihar the most preferred investment destination for EV Sector. The vision of the Bihar Electric Vehicle Incentive Policy 2019 is to establish Bihar as the most preferred investment destination by leveraging its market strength and maximize employment opportunities in this sector in the state.

    Demand Incentives under Bihar EV Policy 

    E-mobility incentives through Transport Department:

    • In terms of para 14 of FAME II dated 8.3.2019, demand incentive to give impetus to manufacturing in Bihar shall be available for consumers (buyers/end users) in the form of an upfront reduced purchase price of hybrid and electric vehicles
    • Following categories of vehicles shall be eligible for demand incentives:
    1. Electric buses
    2. Four-wheelers (EV), plug-in hybrid (PHEV), and Strong Hybrid (SHEV)
    3. Three Wheeler (Electric)
    4. Two Wheeler (Electric)

    Definition of these shall be as notified by the nodal department in Govt. of India for implementation of FAME II, i.e., DHI The state shall offer incentives for the first 100,000 vehicles manufactured within the state of Bihar. Vehicle segment-wise incentive and no. of vehicles to be supported shall be as under:

    Vehicle Segment Max vehicle to be supported  Approx. battery size Approx incentive @10,000 per kWh

    Electric 2 wheeler 

    24,000 2 kWh  20,000/-
    2-3 wheeler  70,000 
    5 kWh 
    electric 4 wheeler  4000 
    15 kWh 
    4 wheeler (SHEV)  1000
    1.3 kwh 
    electric bus 
    250 kwh 

    An additional incentive of Rs. 7,000/- per kWh shall be given on electric rickshaw and e-2 wheelers using Lithium-ion battery instead of a conventional lead-acid battery.

    • Interest subvention of 10% to the buyer of light electric freight vehicle or e-bus
    • Special grant of Rs. 10,000/- per kWh to manual pedal rickshaw puller for conversion/up-gradation to 100% electric mobility. For pedal rickshaw fleet owner interest subvention of 10% on loan taken for conversion/up-gradation to 100% electric mobility.
    • Top-up subsidy of Rs. 8000/- on ex-showroom price if the end-user is below the poverty line or belongs to MBC or S.C./S.T.
    • To qualify for these incentives, all such vehicles must be accompanied by a 3-year comprehensive warranty including that of battery from the manufacturer
    • 100% Exemption from road tax and registration fees for Electric, 50% exemption for Strong Hybrid Vehicles, and 25% exemption for CNG vehicles.
    • The government shall encourage tie-ups with mobility service providers for introducing leasing models for e-rickshaws in the state.
    • Green plate registration for EV for both private and commercial vehicles Exemption from toll charges and public parking lots. All government departments to buy EVs as a strategy to promote EV Interest subvention of 10% to buyers on EVs manufactured in Bihar.
    • Tailor-made incentives for EVs for schools/hospitals by the transport department in consultation with SIPB.
    • A suitable Information, Education and Communication (IEC) Program shall be undertaken by the Transport Dept. for creating consumer awareness and promotion of e-mobility.

    Incentives for Manufacturers of Electric Vehicles (EVs) and its Components

    • All incentives as mentioned in Chapter 6 of Bihar Industrial Investment Promotion Policy, 2016.
    • The Bihar government shall incentive the manufacturing and assembly of–
    1. Electric vehicles (EV);
    2. Components;
    3. Cells for EVs
    4. Batteries for EVs;
    • An EV manufacturing cluster shall be created including common facilities, R&D Centre and vehicle testing track.
    • An additional seed fund of Rs. 10 lakh to the first fifty startups operating in the EV domain

    Incentives for Manufacturers of EV Chargers and Service Providers

    • All incentives as mentioned in Chapter 6 of Bihar Industrial Investment Promotion Policy, 2016.
    • Commercial public EV charging stations will be eligible for a 25% capital subsidy on equipment/machinery (limited to Rs. 5 lacs per station) for the first 500 commercial public EV charging stations.
    • Across the state, the rate of Electrical power required for EV charging shall be an industrial rate of electricity.

    Download Bihar EV Policy (PDF)