Green Drive: Himachal Pradesh announces incentives for increasing EV uptake

By Sarita Brara

In last year’s budget, the Himachal Pradesh government had spelt out its objective to develop the state as a model state for electric vehicles (EVs). It has moved fast to achieve this goal, with five out of the six identified green corridors becoming partly functional, and an average of one charging station or point after every 100 km being set up. A multi-pronged approach was adopted to speed up the setting up of EV charging stations. Out of the 54 identified stations on the green corridor, 23 have become operational since implementation started, and agreements have been signed with Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited to this end.

In addition, 55 government sites have been identified for setting up charging stations in public-private partnership mode. Of this, work on 46 has been awarded to Ropeways and Rapid Transport System Development Corporation Himachal Pradesh Limited, which was selected out of eight bidders. For the remaining nine, Himachal Pradesh State Electricity Board Limited has provided necessary estimates to Himachal Pradesh Tourism Development Corporation Limited for upstream infrastructure and the establishment of charging stations.

Work is under way to install 50-60 kW chargers in government tourism hotels in coordination with IOCL. Tenders were invited and bids were received from major companies in this sector. Plans include the setting up of charging stations by approximately 25 to 30 private hotels in the tourist towns of Shimla, Manali, Dharamshala and Mandi. Further, seven charging stations have already been set up in Shimla by various hotels.

The Himachal Road Transport Corporation currently has 110 e-buses and 50 e-taxis in its fleet. With a total fleet of 3,169 buses, it has stopped purchasing diesel-run buses and aims to replace 1,500 of them with e-buses in the first phase. For this, a proposal to purchase 300 e-buses has been presented. The corporation also proposes setting up EV charging stations at 53 locations for its fleet of e-buses, with 30 already in place. Universal chargers are proposed to be installed at stations so that all types of e-buses can avail of the facility.

The goal, as stated in the Himachal Pradesh EV Policy 2022, is to have at least one charging station on each side of the road every 50 km along busy national highways in the state. Additionally, one such station or point every 25 km on state highways is envisioned. It also aims to have at least one charging station or point within every 1 km x 1 km grid in four model cities – Shimla, Mandi, Baddi and Dharamshala. Presently, there are nearly 3,000 EVs in the state, including buses, taxis, autos, and two- and three-wheelers.

In a significant step towards promoting green mobility in the state, the Rajiv Gandhi Swarozgar Yojana scheme was notified about six months ago with the dual objective of reducing vehicular pollution, and guaranteeing employment and providing start-up assistance to the youth of the state. Under the scheme, a 50 per cent subsidy is provided for the purchase of e-taxis, 500 of which are to be engaged by government departments, local authorities, autonomous boards, corporations and government undertakings, as well as other establishments that require new vehicles or replacement of diesel-run vehicles.

These taxis will be engaged for four years, with the option to extend this period by another two years. Categories and types of vehicles under the scheme have been specified. Details of EMIs for 50 per cent of the vehicle cost have been calculated and specified, and rates for engaging such taxis, charging costs of EVs at any charging point or station and monthly rates for e-taxi owners have also been temporarily fixed. Last year, the state government announced a subsidy of Rs 25,000 for 20,000 meritorious students studying in government institutions for the purchase of these EVs.

In another incentive to promote e-mobility, the state government has decided to waive the annual permit fee on commercial EVs, following a notification by the Ministry of Road Transport and Highways. It will also fully exempt EVs from road tax, in accordance with a notification by the Himachal Pradesh Transport Department. EVs registered in this, as well as in other states, will be exempted from paying toll taxes on highways for the duration of the policy. 50 per cent of the special road tax will also be waived for EVs.

The transport sector is a major contributor to air pollution in the state. With an average of over 10 per cent increase in vehicles annually, e-mobility will play a crucial role in achieving the target of making Himachal Pradesh a green state by March 31, 2026.