Punjab’s EV policy aims to establish the state as a hub of EV manufacturing

After states like Delhi, Maharashtra and Chhattisgarh announced their electric vehicle (EV) policies, Punjab became the latest to follow suit. The five-year policy was launched with an aim of garnering at least 25 per cent of vehicle registration as EVs annually. Cities like Ludhiana, Jalandhar, Patiala, Amritsar and Bhatinda, that contribute to more than 50 per cent of vehicular emissions in the state, are referred to as ‘target cities’ under the policy which also aims to establish Punjab as a favored destination for manufacturing electric vehicles, components and batteries while also promoting job opportunities.

It wants to increase the share of electric two-wheelers significantly to reach 25 per cent during the course of the policy period and also focus on replacing 5 per cent of the bus fleet to eliminate old buses (90 per cent of which is diesel-based) in next three years. EV players say that this will help develop a robust EV ecosystem. 

“We are very excited to see the great State of Punjab coming up with the EV Policy, we at OSM have always felt that each and every State should promote EVs and this is a radical decision by the Punjab Govt. towards the same. Steps to develop robust EV Ecosystem: infrastructure, R&D centres and skilling centres will prove to be a solid support for the sector,” Uday Narang, founder and Chairman, Omega Seiki Mobility, said.

Narang added that the Punjab government's move to offer a purchase incentive of Rs 3000 per kWh (Max. incentive of Rs 10,000 per vehicle) of battery capacity per vehicle to the first 1,00,000 buyers of EV two-wheelers and incentive of Rs 3000 per kWh (Max. incentive of Rs 30,000 per vehicle) to the first 10,000 registered electric auto-rickshaw is an encouraging step for the sector. 

“Besides the Govt. has provided similar benefits to light commercial vehicles (L5N and N1 Category) which will pave the way to make India the number one EV Market. We have recently announced the setting up of a manufacturing facility of retrofit (into Electric Vehicles) in Mohali, Punjab. We promise to introduce more and more investment and products in the state," added Narang.

The Indian Private Equity and Venture Capital Association (IVCA) launched a recent report on “Electrifying Indian Mobility” in Mumbai, in partnership with EY and IndusLaw. The report pegs EV sales in India to cross 9 million units by 2027. 

“$1.7 billion was invested in the EV industry in 2021 by the PE/VC investors. This amount has reached nearly $666 million in 2022 so far. While the Indian start-up ecosystem is focused on technological adaptation and environment, social aspects have also topped their themes for innovation. This is likely to give further boost and momentum to the growth in ESG and Climate specific funds. Fast adoption of EV across all the segments is truly the path to the green frontier,” Rajat Tandon, President, IVCA, said.