UP government’s new EV policy to provide incentives to buyers and manufacturers; aims for 10 lakh new jobs

The government led by Yogi Adityanath in Uttar Pradesh has announced the new “Electric Vehicle Manufacturing and Mobility Policy, 2022” to promote faster adoption of environmentally friendly clean mobility solutions in the state. This new policy aims to attract investments of over Rs 30,000 crore and generate direct and indirect employment for over 10 lakh people.

This new Government of Uttar Pradesh EV policy follows a three-pronged incentive scheme which includes: 1) benefits for consumers for purchasing EVs, 2) for manufacturers of EVs, batteries and related components, and 3) for service providers developing recharge/exchange facilities, an official statement said.

According to the state government, the main objective of the policy is not only to create an environment friendly transport system in the state but also to make Uttar Pradesh a global hub for the manufacture of electric vehicles, batteries and associated equipment.

The main objective of the policy is to contribute to India’s net zero emissions target for 2070 and realize the state’s aspiration to become a trillion dollar economy by harnessing its potential and its opportunities in the electric vehicle industry.

The new policy also provides attractive subsidies for buyers from Uttar Pradesh, which is also one of India’s largest consumer markets. Benefits include 100% waiver of road tax and registration fees for the first three years on all segments of electric vehicles purchased and registered in the state.

In addition to this, the policy also encourages government employees to purchase electric vehicles, for which an advance will also be authorized by the state, according to the statement. The policy also includes provisions to attract significant investment in electric vehicles and battery manufacturing.

Under the new policy, the state would provide a capital grant at the rate of 30% on investment subject to a maximum of Rs 1,000 crore per project up to a maximum of two first ultra battery projects. -mega, investing Rs 1,500 crore or more each for setting up an in-state battery manufacturing plant of minimum production capacity of 1 GWh.

Additionally, the policy also offers manufacturers stamp duty rebate of up to 100% for the Integrated EV Project & Ultra Mega Battery for setting up facilities anywhere in the state. Reimbursement of stamp duty to Mega/Large/MSME projects will be 100% in Purvanchal & Bundelkhand region, 75% in Madhyanchal & Pashchimanchal (excluding Ghaziabad and Gautam Buddh Nagar district) and 50% in Madhyanchal & Pashchimanchal % in Ghaziabad district and Gautam Buddh Nagar.

The state government has also allocated a budget outlay of Rs 500 crore under a notified purchase subsidy scheme for one year across all EV segments. This includes a 15% subsidy on the factory cost for the purchase of two-wheeled electric vehicles up to Rs 5,000 per vehicle (subject to the first two lakh electric vehicles purchased), Rs 12,000 per electric vehicle at three-wheelers (subject to a maximum of 50,000 first vehicles purchased) and up to Rs 1 lakh per electric four-wheeler (subject to a maximum of 25,000 first EVs purchased).

The policy also provides a capital grant to service providers developing battery charging and swapping facilities in Uttar Pradesh. In addition, the state government should also facilitate service providers’ access to land for the establishment of public charging infrastructure by providing public land on lease for 10 years under a revenue-sharing model. nominal values ​​of 1 Re / kWh.

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