Yogi Adityanath-led government in Uttar Pradesh has announced the new 'Electric Vehicle Manufacturing and Mobility Policy, 2022' to promote faster adoption of environment-friendly clean mobility solutions in the state. This new policy aims at attracting investment of over Rs 30,000 crore and generating direct and indirect employment for over 10 lakh people.
Uttar Pradesh government's this new EV policy follows a three-pronged incentive regime that includes: 1) Benefits to consumers for purchasing EVs, 2) To manufacturers of EVs, batteries and related components, and 3) to service providers developing charging/swapping facilities, an official release said.
According to the state government, the policy's main objective 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 primary objective of the policy is to contribute to India's Net Zero emission target for 2070 and to fulfil the state's aspiration of becoming a trillion-dollar economy by leveraging its potential and opportunities in the EV industry.
The new policy also provides attractive subsidies to buyers in Uttar Pradesh, which is also one of India's largest consumer markets. The benefits include 100 per cent road tax and registration fee exemption during the first three years on all segments of electric vehicles purchased and registered in the state.
In addition to this, the policy also encourages government employees to buy EVs, for which an advance will also be allowed by the state, the release said. The policy also provides provisions to attract big-ticket investments in EVs and battery manufacturing.
Under the new policy, the state would provide capital subsidy at the rate of 30 per cent on investment subject to a maximum of Rs 1,000 crores per project to a maximum of first two ultra-mega battery projects, investing Rs 1,500 crore or more each for setting up a battery manufacturing plant in the state of minimum production capacity of 1 GWh.
Moreover, the policy also offers stamp duty reimbursement to the manufacturers at the rate of up to 100 per cent for the Integrated EV Project & Ultra Mega Battery project for setting up facilities anywhere in the state. The stamp duty reimbursement to Mega/ Large/ MSME projects will be 100 per cent in Purvanchal & Bundelkhand region, 75 per cent in Madhyanchal & Pashchimanchal (except Ghaziabad and Gautam Buddh Nagar district) and 50 per cent in Ghaziabad and Gautam Buddh Nagar district.
The state government has also allocated a budget outlay of Rs 500 crore under a purchase subsidy scheme notified for one year on all segments of EVs. This includes a 15 per cent subsidy on factory cost for purchasing two-wheeler electric vehicles of up to Rs 5,000 per vehicle (subject to first two lakh EVs purchased), Rs 12,000 per three-wheeler EV (subject to a maximum of first 50,000 vehicles purchased) and up to Rs 1 lakh per four-wheeler EV (subject to a maximum of first 25,000 EVs purchased).
The policy also provides a capital subsidy to service providers developing charging and battery-swapping facilities across Uttar Pradesh. Moreover, 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.