Uttar Pradesh Government Launches Electric Vehicle Policy 2022


The Yogi Adityanath government announced a three-pronged strategy for new electric vehicle manufacturing. The policy’s main goal is to not just create an eco-friendly transportation system, but also make Uttar Pradesh a global center for the production of electric vehicles, batteries and related equipment. This policy is also designed to help the state realize its aspiration to become a trillion-dollar economy through the exploitation of its potential and opportunities in the EV sector.

The policy offers three-pronged incentives that include benefits for consumers who purchase EVs and manufacturers of EVs, EV batteries and related components, as well as service providers who develop charging/swapping infrastructures.

According to an official spokesperson, the policy offers attractive subsidies to buyers to help open up the state’s electric vehicle market. The policy provides a 100% exemption from road tax and registration fees for all-electric vehicles registered and purchased in Uttar Pradesh during its initial three-year period. If the vehicle was purchased, registered and manufactured in Uttar Pradesh, the same exemption will be applicable in the fourth- and fifth years.

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The policy also provides a Purchase Subsidy scheme with a maximum budget outlay of Rs 500 crore. This will be notified for a 1-year period on all segments of EVs. The policy provides a 15% subsidy on the factory cost of purchasing electric two-wheelers of up to Rs.5,000 per vehicle and is valid for the first 2 lakh purchases only. Rs.12,000 per electric three-wheeler and subject to first 50,000 purchases. Rs.1 lakh for electric four-wheelers and subject to first 25,000 electric vehicle purchases only. Rs.20 lakh for electric buses and valid for first 400 purchases. 10% subsidy on purchase of e-goods carriers of Rs.1 lakh for first 1000 such purchases.

However, the policy will encourage government employees to purchase EVs. The state government will also allow advances. The policy also includes provisions that will allow for large-scale investments in EV batteries and electric vehicle manufacturing.

New policy: Capital subsidy at the rate of 3% for investment, of a maximum of Rs 1,000 crore per project. A maximum of two Ultra Mega battery projects can be set up in the state. Each of these projects must invest Rs 1,500 crore to establish battery manufacturing plants with a minimum capacity of 1GWh.

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MSME projects receive a capital subsidy of up to Rs 5 crore per project. Large projects get a capital subsidy of up to Rs 90 crore.

The policy also provides stamp duty reimbursement for the manufacturers. This is at the rate 100% to Integrated EV Project and Ultra Mega Battery project to set up facilities anywhere in the UP. 50% in Ghaziabad and Gautam Buddha Nagar district for Mega/ Large/ MSME projects, 75% in Pashchimanchal and Madhyanchal (excluding Ghaziabad as well as Gautam Buddha Nagar district) and 100% in Purvanchal and Bundelkhand region.

Incentives have also been offered to set up a Centre of Excellence by Government organizations, Public Sector Undertakings or Private companies in the electric vehicle sector. These incentives include a grant of 50% subject to a maximum of Rs.10 crore per project and a maximum of five such projects.

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