Key Highlights:
- Uttar Pradesh offers 15% incentives, capped at Rs 1 lakh
- Uttar Pradesh EV Incentive Scheme to be revised
- 25,000 electric cars to be covered under incentives scheme
- INR 100 Cr to support 200,000 two-wheelers
The Uttar Pradesh government’s updated notification allows electric cars to receive initial incentives equivalent to 15% of the ex-factory price, with a maximum cap of Rs 1.0 lakh per vehicle.
The Uttar Pradesh government has allocated Rs 250 crore to subsidize 25,000 electric four-wheeler/cars. They have also set aside Rs 100 crore to provide Rs 5000 incentives for 200,000 electric two-wheeler. This subsidy program will continue until 2027 or until the funds run out, whichever comes first.
The Uttar Pradesh government has outlined benefits for electric two-wheeler, three-wheeler, four-wheeler, and buses in this program. According to the UP EV Policy, electric vehicles include fully electric vehicles, strong hybrids, and plug-in hybrids.
According to the notification, 30,000 electric three-wheeler will receive incentives equal to 15 percent of the ex-factory price or Rs 12,000 per vehicle, whichever is lower. The state has allocated Rs 36 crore for these incentives to encourage the purchase of electric three-wheeler.
The government aims to subsidize the purchase of 400 electric buses through incentives of Rs 20 lakh per bus. Additionally, they plan to incentivize the purchase of 1000 electric goods carriers, with incentives capped at Rs 100,000 or 10% of the ex-factory price, whichever is less.
Individual buyers can receive incentives for purchasing one electric two-wheeler, three-wheeler, four-wheeler, bus or goods carrier. Fleet operators, on the other hand, can avail of subsidies for purchasing a maximum of 10 electric two-wheeler, three-wheeler or four-wheeler or up to 5 electric buses and goods carriers.
A buyer can only avail benefits once under this scheme. In the event, the buyer purchases an electric vehicle without batteries under this scheme, he will be able to avail half of the subsidy earmarked for the category.
The Verdict:
The Uttar Pradesh government’s initiative to expand incentive schemes sets a precedent that every state must emulate, regardless of their unique demographics and political landscapes. This unified approach is crucial to propel India towards an electric revolution, not only in passenger transport but across all sectors. The battle against escalating global warming and pollution concerns is a collective responsibility that transcends political cycles. Adopting similar measures nationwide will accelerate electrification even in smaller towns and cities. These incentives incentivize consumers to embrace electric vehicles and bolster the development of charging infrastructure
