Electric Vehicle Policy Approved by Odisha Cabinet
The State Cabinet approved the Electric Vehicle (EV) Policy-2021 on the 24th of September 2021. The policy was approved to achieve the adoption of 20 percent electric vehicles in all vehicle registrations by 2025. The policy will serve the manufacturing of electric vehicles, electric vehicle components, and facilitate research and development (R&D).
The Chief Secretary SC Mohapatra said, "the electric vehicle policy envisages to promote manufacturing of electric vehicles and its components including battery in the State. Besides, innovation, research and development in areas relating to electric vehicles and batteries will also be promoted".
Adding, "under the proposed policy guidelines, it has been decided to extend financial incentives for manufacturing industries, purchase and scrapping incentives and interest subvention in loans, waiving of road tax and registration fees during the policy period. Incentives will be given under the start-up policy of the MSME department. Under the sand policy, demand and supply will be estimated, the Chief Secretary said and added that sources of sand will also be identified.
There will be a Differential Global Positioning System (DGPS) survey of the sand Sairat sources. Putting in place a mining plan, environment, and other statutory clearances also forms part of the policy."
The state government will be extending the financial incentives for the manufacturing industries, buyers, along with interest subsidies in loans, and waiving road tax and registration fees during the policy period (five years).
The policy provides a 100 percent exemption on road tax and registration fees for electric vehicles in the state.
The policy gives a 15 percent subsidy, a maximum of Rs 5,000 for two-wheelers, Rs 12,000 for three-wheelers, and Rs one lakh for four-wheelers on the base price.
The policy provides 100 percent interest-free loans for state government employees purchasing electric vehicles in the state.
The policy provides a subsidy of 10 percent, a maximum limit of Rs 20 lakh per vehicle will be provided to the buyers for passenger buses registered in the state.
The policy provides capital investment subject to an upper limit of Rs 1 crore. For units run by an SC, ST, PwD, women, technical degree/diploma holder, the upper limit is Rs 1.25 crore to the small and micro-electric vehicle battery manufacturer.
Climate change has become a major concern to the country and vehicles are a prime cause there is a need for reduction of fossil fuel vehicles. NITI AYOG has urged upon all States/ Union Territories to adopt a well-defined Electric Vehicle Policy for the State. Odisha has come up with an electric vehicle policy after various other states like Maharashtra, Kerala, Madhya Pradesh, Andhra Pradesh, Delhi, Karnataka, etc. The policy will be focusing on the rapid adoption of Battery Electric Vehicles to offer a large percentage of all new vehicles in the years to come and bring about change in the air quality in Odisha in general and all major cities in particular. Out of 29 states and 7 union territories but to date 13 states have an electric vehicle policy.
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