The subsidy for the purchase of electric vehicles in the State was increased by the Odisha government on Monday. Naveen Patnaik, the chief minister, presided over the cabinet meeting where the decision was made.
As per a government press release, “This policy was implemented on September 1, 2021, and based on the experience and best practices across the country; it is decided to enhance the subsidy. This will make the policy more progressive and help the State achieve the desired objective and encourage the public to purchase electric vehicles.”
With a goal of 20% battery electric vehicle adoption by 2025, the State government approved the Odisha Electric Vehicle Policy, 2021 on September 1, 2021. Several incentives have been declared for both buyers and manufacturers under the policy rules.
Up to December 31, 2025, all sorts of battery-operated cars (electric vehicles) are completely exempt from motor vehicle (MV) taxes and registration fees under the State government’s current policy.
Policy details:
-100 percent exemption of motor vehicle tax and registration fees for electric vehicles (EVs) purchased within Odisha up to Dec 31, 2025
-Transport or non-transport electric vehicle registered in Odisha are exempted from MV tax and registration fees.
-Two-wheeler (2W) EVs: Subsidy is available at 15 percent of the cost of vehicle, subject to a cap of Rs 5,000.
-Three-Wheeler (3W): Subsidy is available at 15 percent of the cost of vehicle, subject to a cap of Rs 10,000.
-Four Wheeler (4W): Subsidy is available at 15 percent of the cost of vehicle, subject to a cap of Rs 50,000.
Electric buses (e-buses) are eligible for subsidies at a rate of 10% of the purchase price, up to a maximum of Rs 2,00,000 for non-AC models, Rs 3,00,000 for AC models, and Rs 4,00,000 for AC deluxe models.
Individual and fleet owners of the first 5000 electric goods carriers to be registered in Odisha would receive a purchasing incentive of Rs 30,000.