The Uttar Pradesh government has taken a step towards promoting the adoption of electric vehicles (EVs) by announcing benefits for prospective buyers. The Yogi Adityanath-led government has decided to exempt road tax and registration fees for three years on the purchase of EVs, effective from October 14, 2022. This benefit will be extended to EVs manufactured in the state as well, with a validity of five years.
The Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy 2022 aim to boost the adoption of electric vehicles (EVs) in the state by offering significant incentives to EV buyers and manufacturers. The policy states that a 100 per cent tax breather will be provided on EVs sold and registered in Uttar Pradesh from October 14, 2022, to October 13, 2025. In the fourth and fifth year of the effective period of the policy, from October 14, 2025, to October 13, 2027, a 100 per cent rebate on EVs manufactured, sold, and registered in the state will be given.
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The scope of the policy is broad, covering all automobiles that use electric motors powered by batteries, ultracapacitors, or fuel cells. This includes two-wheelers, three-wheelers, four-wheelers, Strong Hybrid Electric Vehicle (HEV), Plug-in Hybrid Electric Vehicle (PHEV), Battery Electric Vehicle (BEV), and Fuel Cell Electric Vehicle (FCEV).
The tax exemption will provide significant relief to the 3,997 EV owners in Agra who have paid taxes and registration fees between October 14, 2022. Currently, 11,340 EVs are registered with the Divisional Transport Office (RTO) of Agra, of which 3,997 vehicles were bought after October 14, 2022. The types of EVs registered in Agra include 437 e-rickshaws, 30 cars, and the remaining two-wheelers.
The Uttar Pradesh Government’s decision to provide incentives for EVs is in addition to the subsidies provided by the Central Government for the purchase of EVs. Together, these reliefs will reduce the cost of two-wheelers by Rs 15,000 to Rs 20,000 on-road and cars by up to Rs 1 lakh.
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The policy also offers a 15 per cent subsidy on the factory price of EVs purchased in Uttar Pradesh. This subsidy includes Rs 5,000 per vehicle for the first two lakh electric two-wheelers, a maximum of Rs 12,000 for the first 50,000 electric three-wheelers, and up to Rs 1 lakh per vehicle for the first 25,000 electric four-wheelers.
Moreover, a subsidy of up to Rs 20 lakh per e-bus will be given on the first 400 buses purchased in the state. Additionally, a maximum of 1,000 e-goods carriers will be given a subsidy of 10 per cent on the factory price for the purchase of e-goods carriers up to Rs 1,00,000 per vehicle.
The state government will also encourage government employees to buy electric vehicles by allowing them to take an advance. These measures are expected to promote the use of electric vehicles in Uttar Pradesh and ultimately contribute towards reducing carbon emissions and promoting sustainable mobility.
