UP Government Announces Benefits for Buyers, Manufacturer and Service Providers in Its New EV Policy
Uttar Pradesh government has announced a new EV policy for the promotion of manufacturing and adoption of Electric vehicles in the state. According to the official press release, the New Electric Vehicle Manufacturing and Mobility Policy 2022 for UP, will help not only the state but the whole country in the faster and smoother adoption of the vehicle by creating a conducive ecosystem for EV.
The release also stated that this policy is going to incentivise three important key areas of electric vehicle ecosystem. The areas include consumers that purchase EVs; manufacturers of EVs, batteries and related components; and service providers of charging and battery swapping facilities.
The Policy aims at turning the state into a global hub for the manufacturing of electric vehicles, batteries and spare parts while creating an eco friendly transportation system.
The press release also said that new policy will attract investment of more than INR 30,000 Cr and generate direct and indirect employment for over one million people.
This policy is made for the state to explore and access the opportunities in the EV sector and fulfil the aspiration of becoming a trillion dollar economy. Primary objective of the policy is still to contribute in reduction of carbon emission to zero by 2070.
The policy is poised to provide new buyers with subsidies in order to promote them to buy an Electric vehicle in the place of normal vehicle. Full exemption of road tax and registration fee will be given for a period of initial three years will be given to the customer. Easy advances will be provided to government employees if they want to buy and electric vehicle.
A 30 per cent of capital subsidy will be given to first two ultra mega battery projects, investing INR 1,5000 Cr or more each for setting up a battery manufacturing plant in the state of minimum production capacity of 1 GWh.
There is a provision of stamp duty reimbursement for the manufacturers, at the rate of 100 per cent to Integrated EV Project and Ultra Mega Battery project for setting up facility anywhere in the state. The reimbursement would be 100 per cent in Purvanchal and Bundelkhand region, 75 per cent in Madhyanchal and Pashchimanchal (except Ghaziabad and Gautam Buddh Nagar district) and 50 per cent in Ghaziabad and Gautam Buddh Nagar district to Mega or Large MSME projects.
The policy provides a capital subsidy to service providers developing charging and battery swapping facilities across the state, and the state government will also help service providers set up public charging infrastructure by leasing government land for 10 years at a nominal revenue sharing model of INR 1 per Kilowatt hour (kWh).
We talked to some of the key people in the industry and tried to get their reactions on it. “This will help making of vehicle ownership more accessible and will immensely benefit delivery industry wherein all e-commerce companies have pledged to convert their fleet to EV in next 5 years. We as an EV fleet as a service provider own our fleet and lease that to companies for delivery. The sops will make EV ownership little cheaper, which in turn will reduce delivery transport cost, finally having a bearing on the cost of end- product. The other states must take note of UP's policy,” stated Chanpreet Sethi, Founder of bluwheelz.