Chhattisgarh Has A New EV Policy, Announces SOPs To Develop State As EV Manufacturing Hub

The Chhattisgarh government approved its electric vehicle (EV) policy on July 7 following in the footsteps of the states like Delhi, Haryana etc. The policy exempts the EV buyers from road tax and registration fee in an attempt to woo more people to purchase EVs and to relieve the tension arising from multiple hikes in skyrocketing prices of fossil fuel.

‘Chhattisgarh EV Policy 2022‘ was duly approved of by the cabinet during a meeting at Chief Minister Bhupesh Baghel’s official residence in Raipur. “Chhattisgarh will become a manufacturing hub for electric vehicles and their accessories in the coming years. The policy will create unlimited employment opportunities for the youth. The decision will also benefit buyers and manufacturers of electric vehicles and people engaged in research and development work in the sector,” a release quoted Baghel as saying.

The state takes upon itself the responsibility to give the coming generation a less life-threatening polluted environment, reduced carbon footprint while minimising the causes of rising concerns of rapidly increasing toxic gas emissions from vehicles, etc, the statement said. EV adoption by both commercial and non-commercial vehicles will be encouraged under the policy, it said adding, “The government has set a target of five years and aims to have 15 per cent of new registrations of vehicles, either under individual use or commercial use as EVs till 2027,”.

Besides the waiver in the registration fees on the purchase of EVs registered in the state, the policy completely exempts road tax exemption on all EVs purchased during the first two years from the date of commencement. After two years, the road tax exemption will be only 50% on EVs purchased in the following two years. The road tax exemption will be further reduced to 25 per cent, the release said.

There is another policy to develop the state as a manufacturing hub of EVs. The state government will provide a grant that is 25 per cent of the plant and machinery cost, however big it is. The government will also allocate close to 500-1,000 acres of land towards the set up of EV park to lure manufacturers, according to the policy. “The state government will provide capital subsidy of 25 per cent to the selected energy operators on charging equipment/machinery to the first 300 fast charging stations commissioned in the state up to a maximum of Rs 10 lakh per station”, it said adding that provisions towards the reimbursement of SGST have been made for EV manufacturers in Chhattisgarh during the policy period (till 2027).

Energy operators will enjoy complete reimbursement of SGST for buying batteries to be employed in swapping stations. Complete reimbursement for SGST on the sale of electric buses and electric freight vehicles sold and registered in the state have also been announced. Charging stations will be in both government and private buildings, stated the release.