Context: Uttar Pradesh government is set to revise its electric vehicle(EV) subsidy policy by limiting incentives to EVs manufactured within the state only.
More on News:
- From October 14, only EVs manufactured and registered in Uttar Pradesh will be eligible for subsidy.
- This move aims to boost local manufacturing and attract EV companies, affecting buyers who previously received subsidies on out-of-state or imported EVs.
- From October 14, 2025, to October 13, 2027, a 100 per cent rebate will be given on EVs manufactured, sold and registered in the state.
- The move aligns with the state’s goal of becoming an EV manufacturing hub under the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives.
About Uttar Pradesh’s EV Policy 2022
Evolution: Uttar Pradesh has been one of the pioneering states to launch an Electric Vehicle Manufacturing and Mobility (EVMM) Policy in August 2019.
- However adapting to evolving global trends the Government of Uttar Pradesh launched a New Electric Vehicle Manufacturing & Mobility Policy on October 14, 2022.
Objectives:
- Make Uttar Pradesh a global hub for electric mobility development and manufacturing.
- Enable the transition to an eco-friendly transportation system, particularly in cities.
- Facilitate investments for the development of charging and battery swapping infrastructure.
- Attract manufacturers across the EV ecosystem to set up units and supply to the global market.
- Promote research and innovation in non-ICE automobiles, battery technology, fuel cell technologies, and EV electronics.
Strategy
- In order to achieve the above envisioned, the State Government of Uttar Pradesh shall focus on 3-pillars for promoting EV industry in the State, viz.
- Creation of charging infrastructure
- Faster EV adoption
- Manufacturing
- The areas of interventions under each pillar shall be based on 4-success factors viz. affordability, convenience, technology and awareness.
Key Points:
- Fiscal Incentives: It provided buyers with complete exemption from road tax and registration fees for three years, with refunds issued to those who had already paid these charges.
- Current Incentive structure: Offered buyers up to Rs 20 lakh depending on the vehicle category.
- Initiatives to promote faster transition/ adoption of EV:
- Comprehensive Electric Mobility Plan (CEMP): Developed for Lucknow and shall be extended to all 17 Cities with Municipal Corporations in collaboration with NITI Aayog and the Asian Development Bank.
- The State Government shall target 100% transition of Govt vehicles (for official use) to EV by 2030.
- Implementation framework: The Nodal Agency is Invest UP.
