Odisha EV Policy 2021: Targets 20% EV Registrations by Mid-decade

The Odisha Government has released the Electric Vehicle (EV) Policy, 2021, which aims to accelerate the adoption of EVs, especially in the category of electric two-wheelers (E2W), three-wheelers (E3W), and light motor vehicles (E4W).

The Government of India has adopted a National Electric Mobility Plan to cut its emission intensity by 35% below levels by 2030 and has requested all the states and union territories to frame their own EV policy.

Odisha’s policy will focus on driving rapid adoption of battery electric vehicles to contribute a substantial percentage of all new vehicles in the years to come and bring about an improvement in the air quality in Odisha, in general, and in all major cities in particular.

Objectives: The state aims that 20% of all vehicle registrations should be for EVs by 2025. Other aims include: promoting the manufacture of EVs & their components, including battery; promoting innovation and facilitating research & development in the areas relating to EVs & battery; and putting in measures to support the creation of jobs in driving, selling, financing, servicing, manufacturing and charging of EVs.

The policy will be valid for five years. The fiscal incentives being offered under the policy would be in addition to the demand incentives available in the FAME India Phase- II Scheme of Government of India. The policy proposes financial incentives for EV manufacturing, purchase, and scrapping. Interest subvention in loans, road tax, and registration fee waivers will also be provided. Incentives will also be available for start-ups.

Incentives: Nearly 82% of all new vehicles registered in Odisha comprise two wheelers. It is the most popular segment of vehicles, which contributes a major part in air pollution. Similarly, three wheelers are 3.06% and cars (LMVs) 7.04% of total registered vehicles.

Purchase incentives offered to generate demand for EV vehicles are:

Additionally, 100% interest free loans would be made available to state government employees for the purchase of EVs. Further, municipal authorities will provide subsidised parking for all personal EVs. Individual towns/cities will prepare city parking plan to encourage provisions for on-street parking places for EVs with subsidized fees and EV charging stations.

In order 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, the following incentives will be provided:

• A subsidy of 10% (maximum limit of Rs. 20 lakhs per vehicle) will 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 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 purchase of electric buses would be made available.

In order to develop sustainable EV manufacturing industries, the following incentives will be provided:

• SGST reimbursement for manufacturing EVs in the state during the 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:

Moreover, the state government will provide public charging infrastructure, cultivate awareness and develop a recycling eco-system. The government will design and implement an intensive public outreach and communication campaign focused on driving awareness regarding benefits of EVs and key elements of the policy.

The Transport Department will be the Nodal Department for implementation of this policy. A dedicated “EV Cell” will be established in the Department for day-to-day effective implementation of the policy with relevant technical expertise. All relevant rules and provisions will be made by the Department for compliances of the requisites made in the policy.

The full draft of the policy can be accessed here for more details.