Highlights
- The UP government has announced subsidies for consumers buying e-vehicles
- Subsidies upto Rs 1 lakh will be provided by the state on new EV purchase across segments
- The new policy aims to promote faster adoption of clean mobility solutions
Yogi govt good news for e-vehicle customers: The Uttar Pradesh government has announced the New Electric Vehicle Manufacturing and Mobility Policy, 2022, to promote faster adoption of clean mobility solutions and create a conducive ecosystem for EVs in the state, an official release said on Thursday. The government has also announced subsidies for consumers buying e-vehicles.
Under this scheme, the Yogi government has announced a 15 percent subsidy on the purchase of electric vehicles. The proposal was approved in the cabinet meeting chaired by Chief Minister Yogi Adityanath on Thursday. Under this, Rs 5000 exemption will be available on the first two lakh two-wheelers. At the same time, there will be a discount of Rs 12,000 on the first fifty thousand three-wheelers. Apart from this, exemption will also be provided on the first 25 thousand four-wheelers. One lakh discount will be available on four wheelers.
Government introduces electric vehicle policy
The policy provides for a three-pronged incentive regime that includes benefits to consumers for purchasing EVs; to manufacturers of EVs, batteries and related components; and to service providers developing charging/ swapping facilities, the release said.
The main objective of the policy is not only to create an eco-friendly transportation system in the state, but also to make Uttar Pradesh a global hub for the manufacturing of electric vehicles, batteries and associated equipment, the release said.
The policy aims at attracting investment of more than Rs 30,000 crore and generate direct and indirect employment for over one million people, it said.
With a primary objective to contribute to India's Net Zero emission target for 2070, the policy also aims to fulfil the state's aspiration of becoming a trillion-dollar economy by leveraging its potential and opportunities in the EV industry.
Since Uttar Pradesh is one of India's largest consumer markets, the policy also provides attractive subsidies to buyers.
This includes 100 per cent road tax and registration fees exemption during the first three years of the effective period of the policy on all segments of electric vehicles purchased and registered in Uttar Pradesh.
Government employees will be encouraged to buy EVs, for which advance will also be allowed by the State Government, the release said.
The policy provides provisions to attract big-ticket investments in electric vehicles and battery manufacturing.
The new policy provides capital subsidy at the rate of 30 per cent on investment subject to maximum Rs 1,000 crores per project to maximum first two ultra mega battery projects, investing Rs 1,500 crores or more each for setting up a battery manufacturing plant in the state of minimum production capacity of 1 GWh.
Also, the policy provides stamp duty reimbursement to the manufacturers, which is at the rate of 100% to Integrated EV Project & Ultra Mega Battery project for setting up facility anywhere in the state, and at the rate of 100% in Purvanchal & Bundelkhand region, 75% in Madhyanchal & Pashchimanchal (except Ghaziabad and Gautam Buddh Nagar district) and 50 per cent in Ghaziabad and Gautam Buddh Nagar district to Mega/ Large/ MSME projects.
The policy provides a capital subsidy to service providers developing charging and battery swapping facilities across the State and the state government shall also facilitate land to service providers for setting up public charging infrastructure by providing government land on lease for 10 years at a nominal revenue sharing model of Re 1 / kWh.
(With inputs from PTI)
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