CM Yogi Adityanath ’s policy is to make UP a global hub for manufacturing of e-vehicles, batteries and related equipment.

By VIRENDRA SINGH RAWAT

LUCKNOW, Oct 13, 2022 -Taking yet another ambitious stance after the much hyped $trillion target, Uttar Pradesh is now looking to become a global hub of electric vehicles.

The Yogi Adityanath cabinet today approved the new Electric Vehicle Manufacturing and Mobility Policy 2022 aiming to catalyse faster adoption of clean mobility and create a conducive ecosystem for e vehicles.

The new policy promises substantial subsidy by the state government on the purchase of e-vehicles.

In fact, the UP government has set a target of attracting private investment of more than Rs 30,000 crore in the sector, which is estimated to generate direct and indirect employment for over a million people.

The new policy is aimed not only at developing an eco-friendly transport system, but to make UP a global hub for manufacturing of e-vehicles, batteries and related equipment.

A provision for a three-pronged incentive system has been made in the new Policy 2022 that includes benefits to consumers for purchasing EVs; to manufacturers of EV, EV batteries and related components; and to service providers developing charging/swapping facilities.

During the first three years of the effective period of the policy, there will be 100 percent road tax and registration fee exemption on the purchase of all categories of e-vehicles. If the e-vehicle is manufactured in UP, the same exemption will continue in the fourth and fifth years also.

Besides, a subsidy of 15 percent will be given on factory cost for purchasing two-wheeler EV up to maximum Rs 5,000 per vehicle subject to first 2 lakh EVs purchased; up to maximum Rs 12,000 per three-wheeler EV subject to maximum first 50,000 such EVs purchased; and up to Rs 1 lakh per four-wheeler electric vehicle subject to maximum of first 25,000 EVs purchased.

At the same time, a subsidy of up to Rs 20 lakh per e-bus (Non-government) subject to maximum of first 400 e-buses; and 10 percent subsidy on factory cost for purchasing e-goods carriers of up to Rs 1,00,000 per vehicle to a maximum of first 1,000 carriers.

Under the policy, a provision has been made for subsidy up to a maximum of Rs 10 lakh per project to the service providers developing 2,000 charging and battery swapping facilities in the state.

Moreover, there is a provision to provide capital subsidy up to Rs 5 lakh per swapping station to the service providers developing facilities of one thousand such swapping stations.

Similarly, the first five EV projects with an investment of Rs 3,000 crore or more for setting up of centralised manufacturing units of EVs, EV batteries and related components, including R&D and testing facilities in the state, will be given a maximum of Rs 500 crore per project. Under this, capital subsidy will be provided at the rate of 20 percent.