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Odisha Electric Vehicle Policy
shayma Shamim
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Published on 4th Oct 21

Odisha Electric Vehicle Policy

To reduce CO2 emissions, the electric vehicle policy agreed by the cabinet of ministers of Orissa, Ola Electric, a subsidiary of Indian ride-hailing startup, has launched the first electric scooter. Suresh Mohapatra, Orissa's chief secretary, said the policy's goal is to reach 20% of the total number of battery-powered electric vehicles by 2025. As a result, Orissa has become the tenth state to implement a state electric vehicle policy in the state. This policy provides financial incentives for the production, purchase, and disposal of electric vehicles. Orissa Govt also offers interest rates on subsidized loans, road tolls, and reduced registration fees. EV Startups are also rewarded.

The objective of the Policy

Mohapatra said the aim of this policy is to take over 20% of all-electric vehicles in all registrations by 2025 to promote and innovate the production of electric vehicles and their components (including batteries) in the state and also promoting research and development in Industries related to electric vehicles and batteries. In accordance with the proposed policy guidelines, it was decided to provide financial incentives to the industry during the policy period, such as purchasing incentives, incentives on scrapping, subsidized interest on loans, reduced tolls, and registration fees.


"To rapidly cool the planet that has plagued everyone for the past few decades, we need to reduce emissions from various types of road vehicles that use traditional fossil fuels," Mohapatra said. He added that it is the right time to reduce these emissions by cutting back on these traditional fuels and accelerating the introduction of electric vehicles. According to a report by NITI Aayog, there are 4,831 electric vehicles on Orissa's roads. Due to the low density of electric vehicles, there are currently only 18 electric vehicle toll stations in the state. The usage of electric vehicles in adjacent states like Bihar and Chhattisgarh is way more than in Orissa.

Incentives on Charging infrastructure

The Orissa state government is allocating up to Rs 5,000 to those who purchase the first 20,000 dedicated chargers. Services to encourage battery replacement and replacement stations are encouraged in all cities and on national and provincial roads. The government grants a 25% subsidy to selected energy companies to pay for the installation of chargers. These grants are awarded within one year of allocation. Special grants will be awarded to the first batch of 500 electric vehicle charging stations. The government will also provide 100% SGST compensation to power companies for the purchase of batteries at exchange stations. The Chief Energy Engineer's office becomes the hub for creating and monitoring EVCS.


The government will ensure that these are currently set up in electric vehicles, clearly showing the specific battery installation. Explore opportunities to interact with existing e-waste management organizations. The Ministry of Industry is negotiating with the Ministry of Forestry and Environment and the State Pollution Control Council to put in place a clear policy to implement recycling.

The transport sector will be at the center of this policy. To effectively implement the daily policy, Govt. will install a special "electric vehicle cell". Several states and federal districts, including Delhi, Maharashtra and Gujarat, have announced policies for electric vehicles. The latest EV policy announcement was made in Rajasthan, where three-wheel electric taxis are being subsidized up to Rs 20,000. However, this policy aims to facilitate the purchase and use of electric vehicles, especially in the two-wheeler, three-wheeler, and four-wheeler market segments. Vehicles that have passed the FAME II Fast and Manufacturing (FAME II) electric vehicle program in India are eligible for various compensation as per the policy. One thing we clearly see is that various states are taking steps forward to promote e-mobility and it will definitely expand the E-Vehicle market.

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