13 Indian states that have announced policies to encourage EVs
Popular electronic vehicle maker, Tesla recently announced its
Indian debut by registering an Indian entity, Tesla India Motors and Energy
Private Limited. Tesla Founder Elon Musk had indicated the company’s plans of
entering the Indian market in 2021.
With Tesla’s entry, Karnataka has reinforced its position as one
of the foremost states bringing in electronic vehicles to the country. Ola
Electric, Mahindra Electric and smart scooter company Ather Electrical have all
set up their R&D centres and firms in the state.
PM Narendra Modi had set an ambitious target of ensuring that 30
per cent of all vehicles sold in India are electric by 2030. As per estimates,
India is expected to become the fourth largest market for EVs by 2040.
While FM Nirmala Sitharaman has not announced any new policy for
the EV sector in the recently announced Union Budget 2021, EVs will be exempted
from the proposed Green tax to be levied on petrol and diesel vehicles for
registration renewal after 15 years. The Scrappage policy announced by the
Finance Ministry, which will pave the way for newer automobiles, is also being
seen as a positive sign for EVs.
States across the country are doing their bit to push EV
adoption and attract investments for EV infrastructure. Let’s take a look at
what states are doing to attract EVs.
Bihar (draft): The state’s EV policy,
which was drafted in 2019, aims at converting all manual peddle rickshaws to
e-rickshaws by 2022. It also aims at creating fast charging/swapping stations
at intervals of 50 km on state and national highways, attracting ground
investments of Rs 2,500 crore and creating employment opportunities for 10,000
people.
The policy plans to provide subsidies of INR 12,000 to the
end-user. Special incentives of Rs 10,000 will be given on electric rickshaws
using a Lithium-ion battery instead of the conventional lead-acid battery. EVs
will also be eligible for exemption from road tax and registration fees.
Delhi (approved): Delhi’s EV policy is
focused on improving the NCT’s extremely poor air quality. The policy aims to
ensure that EVs account for 25 per cent of total vehicle registrations in the
city by 2024. Owners of the first 1000 e-cars to be registered in New Delhi
will get a purchase incentive pf Rs 10,000 per kWh of battery capacity.
The Delhi Government also aims to convert 50 per cent of buses to electric by
2024 and increase this to 100 per cent by 2030. The policy offers subsidies of
up to Rs 30,000 on two-wheelers and up to Rs 1.5 lakhs for cars. The Government
also plans to offer subsidies worth 25 per cent of the cost (up to Rs 5,500)
for Ecycles, along with an additional offer of Rs 2,000 for the first 10,000
e-cycles.
Andhra Pradesh (approved): The
state’s EV policy plans to bring in 10 lakh EVs by 2024. This would include
converting all the 11,000 buses under the Andhra Pradesh State Road Transport
Corporation (APSTRC) fleet into EVs by 2029.
It aims to set up 1 lakh slow and fast charging stations by 2024, attract
investments worth Rs 30,000 crores, while generating 60,000 jobs in the
electronic vehicle sector. Plans are also on to set up a Centre for Advanced
Automotive Research, in collaboration with IISER, IITs and ISRO for research in
chemical, mechanical, electrical and electronics engineering to drive the
policy.
Gujarat (draft): Gujarat’s EV policy
aims to establish a conducive environment to encourage manufacturers and
investors to develop the EV market. The Government plans to have 1 lakh EVs on
the road by 2022. This includes 80,000 two-wheelers, 14,000 three-wheelers,
1,500 buses and other transport vehicles and 4,500 four-wheelers, which include
commercial taxis and cargo.
Financial subsidies include 100 per cent exemption from the
registration fee, 50 per cent exemption from motor vehicle tax, along with a
100 per cent exemption from electricity duty for EV charging stations.
The Government has also shortlisted tourist spots such as Bekal,
Munnar and Kovalam, along with the Secretariat, Infopark and Technopark in
Thiruvananthapuram for the introduction of e-scooters and e-bikes. The state
witnessed a 64 per cent rise in EV registration in 2020 (1,321 EVs), compared
to 2019 (468 EVs).
Himachal Pradesh (draft): The
state’s draft EV policy aims to achieve 100 per cent transition to EVs by 2030.
The policy proposes a business model for private players to set up charging
stations and infrastructure for EVs in the state, along with EV charging point
provisions in commercial buildings.
The policy also encourages the use of hybrid EVs by Government
entities during the transition period, along with creating newer employment
opportunities.
The Karnataka Government has also recommended offering subsidies
worth 20 per cent or Rs 10 lakhs, whichever is greater, to individuals looking
to set up charging stations. Currently, there are only around 10,000 electric
vehicles in Bengaluru.
Madhya Pradesh (approved): The
state’s policy focuses on ensuring EVs contribute to 25 per cent of all new
public transport vehicles by 2026. People buying electric vehicles for
commercial purposes would be assured a free parking spot in a Government
parking lot for a period of five years. While this excludes buses, it extends
to autorickshaws, two-wheelers and taxis.
To ensure adequate charging infrastructure, setting up of public
charging stations (PCS) will be de-licensed. This will allow any individual or
company to set up public charging stations, provided they meet the regulations.
Charging fees will also be lower, at Rs 6/unit at public charging points. The
MP Government’s EV policy also waives off-road tax/registration fee for the
initial five years.
The policy aims to increase the number of EVs registered in the
state to 5 lacs and create an investment of Rs 25,000 crores in EV, EV
manufacturing and component manufacturing, and charging infrastructure
equipment manufacturing in the state.
The policy exempts EVs from road tax and registration fees for a
period of five years. It also aims to provide incentives for micro, small and
medium enterprises, as well as large manufacturing units.
Punjab (draft): Under the Punjab
Electric Vehicles Policy, 2019, the Government aims to have 25 per cent of
annual vehicle registrations as EVs by the last year of the five year policy.
It also aims to increase the share of electric two-wheelers to reach 25 per
cent of new sales over the five year period.
The policy provides for 100 per cent waiver on motor vehicle tax
for private EVs for a period of five years. For commercial vehicles, the
exemption will extend to registration as well as permit fee for five years. The
waiver will be applicable for a period of ten years for vehicles manufactured
in Punjab.
Under its EV policy, Tamil Nadu plans to electrify 5 per cent of
buses by 2030 and convert all auto-rickshaws in six major cities to electric
within 10 years. It also plans to set up a business incubation service to
encourage EV startups.
Uttar Pradesh (approved): The
state’s EV policy aims to roll out nearly 10 lakh EVs across all segments by
2024. Plans of phasing out all commercial fleet and logistics vehicles and
attaining 50 per cent EV mobility across goods transportation in ten EV cities
by 2024, and all other cities by 2030, are also on.
The state government has proposed setting up a centre for
excellence for research and development, testing and certification to help the
EV industry. The state also plans to launch 1,000 electric buses by 2030.
The policy will give EV manufacturers preferential market access to set up
their plants in the state. The government is also setting up an energy park in
the state, along with an EV park. Currently, electric bus manufacturer Olectra
Greentech and electric three-wheeler manufacturer Gayam Motor Works have their
manufacturing centres in the state.
However, much more needs to be done in terms of bringing about
infrastructure such as charging stations, along with policy changes such as
reduction of GST on batteries, to make EVs more affordable
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