Government Announces Subsidy on Purchase of Electric Vehicles; Check Details

The Odisha government announced that it will provide 15% discount on electric car purchases (EVs). According to the Odisha Electric Vehicle Policy 2021, this decision has been taken. 

The subsidy for two-wheelers is 15% of the vehicle's cost, up to Rs.5000, for three-wheelers it is Rs.10000, and for four-wheelers it is Rs.50000. 

The subsidy amount will be credited to the bank accounts of beneficiaries by the RTOs where the vehicles are registered. The scheme will be in place till December 31, 2025. 

The transport commissioner, with the assistance of NIC or OCAC, will set up a dedicated portal to track information relating to EV sales, crediting of purchase incentives, and loan subsidies for EV purchases. 

Earlier, the Commerce and Transport Department exempted all categories of electric vehicles from registration fees and motor vehicle taxes on October 29, 2021.  

Harsh Vardhan Didwania, MD of Odisha-based EeVe India, stated, "It's a wonderful gesture by the Odisha government.  It will encourage vehicle buyers to opt for e-Vehicles. It is beneficial to the environment. Not only can electric vehicles and bikes reduce air pollution, but they can also reduce noise pollution." 

Meanwhile, Union Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2022 on Tuesday, announced that the Centre will soon come up with a battery-swapping policy for electric vehicles. 

An Electric Vehicle owner will be able to replace a depleted battery with a fully charged one rather than having to wait for the discharged battery to be recharged. 

According to a notification issued by the Commerce and Transport Department, the decision to give subsidy has been taken on the suggestion of Niti Aayog and in accordance with the Odisha Electric Vehicle Policy 2021. The subsidy will come into effect from September 1. The amount will be credited to the bank accounts of beneficiaries by the RTOs where the vehicles are registered. The scheme will be in place till December 31, 2025. 

The state is also focusing on building a robust EV charging infrastructure. According to a previous report, Bhubaneswar would get seven charging stations. Malls, parking lots, hotels, residential complexes, highways, and workplaces would be prioritized, according to the plan. According to city authorities, this is the first step towards developing a comprehensive charging infrastructure in the city. Odisha also intends to reach a 20% share of total car registration for battery-powered electric vehicles by the year 2025.