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https://e-vehicleinfo.com/odisha-electric-vehicle-policy-2021-incentives-on-evs/Odisha Cabinet approves Electric Vehicle Policy 2021 to reduce emissions & promote electric vehicles in the State.

The Odisha State Cabinet on Friday approved the Electric Vehicle Policy, 2021, which aims to reduce emissions from the use of conventional fossil fuel-powered vehicles and promote the manufacturing of electric vehicles. The policy was approved in a meeting chaired by Chief Minister Naveen Patnaik.

Read More: EV Policies and Subsidies of India’s 13 States

Odisha Electric Vehicle Policy 2021: Electric Vehicles

Category of vehicle% Of subsidyMaximum amount
of subsidy
Two-wheelers 15%Rs. 5000/-
Four Wheelers15%Rs. 1,00,000/

   There will be an open permit for auto three-wheelers.

  • 100% interest-free loans would be made available to State Government employees for the purchase of Electric Vehicles.
  • Interest subvention to the public for purchasing personal EVs.
  • Government Departments/Offices, Public Sector Undertakings will give preference to hiring EVs for Official use and the above purchase incentives will be applicable for the private Owners to purchase these vehicles. Government Department/ Offices/Public Sector Undertakings will purchase EVs when such purchase is necessary and is allowed.
  • Public parking: Municipal authorities will provide subsidized parking for all personal EVs. Individual Towns/Cities will prepare city parking plans to encourage provisions for on-street parking places for EVs with subsidized fees and EV charging stations.
  • Original Equipment Manufacturers (OEMs) shall have to register their e-vehicle model including swappable battery models meeting eligibility criteria with Transport Department.

In order to avail of the above incentive, the electric two-wheelers have to fulfill the performance and efficiency eligibility criteria as in FAME India Phase-II as under:

CriteriaThreshold Value
Min. top speed40km/hour
Min. acceleration0.65m/s2
Max. electric energy
Not exceeding 7kWh/100km
Warranty At least 3 years of comprehensive warranty including that of battery from the manufacturer

Odisha EV Policy On Electric Buses 

The government of Odisha will provide appropriate incentives and other support to ensure that pure electric buses constitute at least 50% of all new stage carriages procured for the city buses in the next five years.

  • A subsidy of 10% (maximum limit of Rs. 20 lakhs per vehicle) shall be extended to the buyers for passenger buses registered in the State.
  • 100% SGST on the sale of electric buses sold and registered in the State will be reimbursed during the policy period.
  • 100% exemption on road tax & registration fees for the first four years will be made available.
  • Interest subvention of 5% on loans for the purchase of Electric Buses would be made available

Goods Carriages EV Incentives

  • The policy recognizes the importance of light commercial goods carriages and is committed to extending incentives for USE OF EVs of this category.
  • Individual and fleet Owners shall be given a purchase incentive of Rs.30,000/- to the first 5000 electric goods carriers to be registered in the State.
  • Interest subvention of 5% on loans for the purchase of electric goods carriers in the policy period
  • 100% SGST on the sale of electric goods carriages sold and registered in the State will be reimbursed for the policy period.
  • 100% exemption on road tax & registration fees for the policy period will be made available.
  • Electric goods carriages in the above category shall be exempted from the prohibition on plying and idle parking on identified roads of the State during specified timings as notified by the local authorities from time to time.
  • Scrapping incentive shall also be extended for old ICE goods carriages registered in the State as per the scrapping Policy announced by Gol.
  • A good financing mechanism would be evolved by Finance Dept. for the purchase of EVs

EV Incentives For Manufacturing Industry 

In order to develop sustainable EV manufacturing industries, the government of Odisha will take the following measures:

  • SGST reimbursement for manufacturing of EVs in the State during the EV policy period.
  • All the incentives will be extended under the IPR, 2015 and MSME Policy, 2016 as amended from time to time to the manufactures.
  • The Small and Micro EV Battery manufacturing Units will be facilitated with the following incentives as MSME Policy, 2016:
Category of EnterpriseQuantum of Assistance
New Micro 86 Small Enterprise 25% of Capital Investment made in plant 86 machinery subject to an upper limit of Rs.1 crore
New Micro 86 Small Enterprise owned by SC/ST/Differently abled/Women/ Technical ( Degree/ Diploma) Entrepreneur30% of Capital Investment made in plant & machinery subject to an upper limit of Rs.1.25 crore
New Micro 86 Small Enterprise set up in industrially backward districts including KBK districtsAdditional Capital investment subsidy @ 5% investment made in plant 86 machinery with a prescribed 

Read More: Electric Vehicle in India: Challenges & Opportunities 


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