Odisha announces its Electric Policy 2021

The government of Odisha has published its Electric Vehicle (EV) Policy for 2021. The EV policy in Odisha intends to hasten the adoption of electric vehicles, particularly in the categories of electric two-wheelers (E2W), three-wheelers (E3W), and light motor vehicles (E4W). By 2025, the state aims to attain a target of 20 per cent battery-operated electric vehicle registrations among total vehicle registrations. The policy guidelines also include extended financial incentives such as incentives available for manufacturing industries, stimulus on purchase and scrapping, interest subvention in loans, waiver of road tax and registration fees during the policy period. The policy will be in effect for a period of five years.

Under the policy, the government has given a 100 per cent exemption on road tax and registration fees on EVs purchased within Odisha. The state will also offer a 15 per cent subsidy with an upper limit set at Rs 5000 for E2W, Rs 12,000 for E3W, and Rs 100,000 for E4W, respectively. Further, state government employees are eligible for zero-interest loan for purchasing EVs.

According to the report, all new micro, and small companies (MSEs) will be given capital investment up to Rs 10 million. The capital investment for entities run by scheduled caste/scheduled tribe/differently abled/women/technical and diploma holders would be limited to Rs 12.5 million. Similarly, new MSEs developed in industrially backward regions, such as the Kalahandi Balangir Koraput region, will be eligible for a 15 per cent capital investment subsidy.

Among other announcements, the Odisha government will provide a grant of up to Rs 5,000 to acquire charging equipment for the first 20,000 private charging points as part of the charging infrastructure incentives. The government has also offered a 25 per cent capital subsidy to qualified energy operators for charger installation costs, as well as a 100 percent State GST refund for batteries purchased at swapping stations.

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