Madhya Pradesh Soon To Have Five Model EV Cities

The Madhya Pradesh (MP) Urban Development & Housing Department recently released the draft Madhya Pradesh Electric Vehicle (EV) Policy 2025. The draft document aims to develop robust and accessible EV charging infrastructure for all, including differently-abled individuals. MP’s draft policy designates Bhopal, Indore, Jabalpur, Gwalior, and Ujjain as model EV cities, where detailed plans will be implemented to electrify intra-city public bus fleets, execute designated pilot initiatives, and ensure the effective implementation of all specified provisions within the policy.

MP draft EV Policy also aims to foster collaboration between government entities, the private sector, research institutions, and civil society organizations. Ultimately, it seeks to bolster skill development initiatives and expand job prospects within the EV sector in Madhya Pradesh.

The policy shall remain active for five years from the date of notification (or) until replaced by an updated/revised policy, as issued by the nodal department of the Madhya Pradesh Government

Policy Targets 

• Electric Vehicle Target: The state has outlined the following provisions for promoting electric vehicles in India. The policy set the target to achieve 40% electrification in all new vehicle registrations by the end of the policy period. It also aims to achieve 100% of all new registrations in the commercial fleet. It intended to achieve it by the end of the policy period.

• Electric Three-Wheeler Target: It aims to achieve 70% of all new registrations by the end of the policy period in both passenger and freight segments.

• Electric Four-Wheeler Target: It envisions achieving 15% of all new registrations by the end of the policy period.

• Electric Bus Target: It aims to achieve 40% of all new registrations by the end of the policy period. All state government vehicles, including those under Government Corporations, Boards, and Government Ambulances, will be converted to electric vehicles by the end of the policy period, provided:

• a) They fall under the two-wheeler, three-wheeler, or four-wheeler categories.
• b) There are commercially available EV equivalents in the market.
• Electric Cycles

The draft policy states, “The Total Cost of Ownership (TCO) advantage associated with electric cycles is notably 70-80% lower than that of petrol-powered two-wheelers and 40-50% lower than electric two-wheelers. Electric cycles offer an appealing prospect, especially for last-mile applications such as rapid commerce, food delivery, and e-commerce, particularly in densely populated areas where alternative modes could exacerbate traffic congestion.”

Furthermore, it adds, “Electric cycles open up the possibility of utilizing supercapacitors alongside advanced lithium-ion batteries due to their inherent characteristics. With this policy, the state aims to popularize electric cycles as a means of personal transportation and as a sustainable, cost-effective solution for e-commerce companies to fulfill their delivery needs.”

Tariff For PCS 

The policy gave favorable electricity tariffs for Charge Point Operators (CPOs) and Battery Swapping Operators (BSOs), the draft mentioned, “The tariff for the supply of electricity to a public charging station (PCS) would be made into a single-part tariff and is expected to not exceed the Average Cost of Supply (ACOS) till 31st March 2028. Moreover, during solar hours (9 AM to 4 PM), the cost of supply from the DISCOM to a PCS will be 0.7 times the ACoS, while during non-solar hours, it will be 1.3 times the ACoS.

Additionally, the notification mentioned, “Thje projects will be provided 100% exemption on electricity duty on power purchased from the MP DISCOMs or generated and consumed from captive sources for the duration of the policy.”

Capital Subsidy Incentives

Among other incentives, the draft policy offers the electric cars a maximum subsidy of INR 50,000 per vehicle or up to INR 2,500 per kWh, whichever is lower, for a maximum of 10,000 EVs with an ex-factory price of less than INR 25 lakh.

Regulatory Incentives:

(a) 100% motor vehicle tax exemption for all vehicles sold within the policy period. (b) 100% registration fee exemption for all vehicles sold within the policy period. (c) Every state government department is mandated to transition its current vehicle fleet to EVs. The specific annual progression for this shift will be disclosed by the nodal department following the release of this policy.