Odisha Government offers 15% Subsidy on Electric Vehicles

In what can prove to be a game changer in near future for the faster adoption of electric vehicles in the eastern state, the Odisha Government has declared that it will provide a 15 per cent subsidy on the purchase of electric vehicles.

Although the subsidy comes with an upper cap for all categories, experts opine that this will lead to the betterment of the e-vehicle industry.

For two-wheelers, the subsidy will be 15 per cent of the cost, up to a maximum of Rs 5,000. Similarly, the cap on 15 per cent subsidy for three-wheelers is Rs 10,000, and for four-wheelers, it is kept at Rs 50,000.

This decision of the state government falls in accordance with the Odisha Electric Vehicle Policy 2021 and is also in line with the recommendation of Niti Ayog. The present notification was issued by the Commerce and Transport Department.

As far as the subsidy policy is concerned, it will come into effect from September 1, 2021 and the subsidy amount will be credited to the bank accounts of beneficiaries. This exercise will be done by the local RTO where the vehicle is registered. The notification holds that the subsidy scheme will be in place till the end of 2025.

The government has also planned a dedicated portal to monitor information relating to sales, credit of purchase incentives and subsidies on loans. The transport commissioner will develop this website with the help of NIC or OCAC. The subsidy scheme is also being viewed as a natural extension of last year’s initiative when the Odisha Government had exempted registration fees and motor vehicle taxes on all categories of electric vehicles.