Assam EV Policy 2021 – Summary

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Status – Notified on 4th Sep 2021. To be valid for a period of 5 years.

The policy aims to achieve 25% penetration of EVs in all vehicle registrations by 2026.

Policy Targets

– The state will support the deployment of the first 2 lakh EVs either under commercial use or individual use during the duration of 5 years. The segment wise targets are:

Two wheelers – 100,000 units, Three wheelers – 75,000 units, Four wheelers – 25,000 units

– The state also aims to convert 100% of public transport bus fleet to electric buses by 2030.

– All government vehicles to be converted to electric by 2030. After 2025, only EVs will be allowed to purchase.

– Phase out all fossil fuel based commercial fleets and logistics vehicles in all cities by 2030.

Demand Incentives

– The following demand incentives (based on battery capacity) by state will be over and above the incentives provided by the central government schemes. The max amount of subsidy will not exceed 40% of ex-factory price of the EV.

– No road tax and no registration charges for electric 2W, 3W, 4W for 5 years.

– 100% waiver on parking charges for electric vehicles for 5 years

– Retrofitment incentive at 15% upto INR 15,000 for 3 seater auto rickshaws.

Incentives for charging infrastructure

– Commercial public EV charging stations for 2W, 3W, 4W will be eligible for 25% capital subsidy on equipment/machinery subject to maximum limit of Rs. 10 lakhs per station. This incentive will be provided to the first 500 commercial public EV charging stations.

– Petrol Pumps will be allowed to set up charging stations subject to qualifying fire &safety standard norms issued by the competent authorities.

– State Government shall exempt 90% electricity duty of EV charging stations during the policy period.

– The tariff for new third-party owned EV charging infrastructure shall be as per the AERC tariff order for utilities.

Incentives for manufacturing of EV and EV components

In addition to the 30% Capital Investment Subsidy available under NEIDS,2017 or any subsequent policy from Govt. of India/State Govt., units manufacturing EV or their components will be eligible for the following additional incentives:

– 20% of cost of Plant & Machinery up to Rs. 15 lakh for Micro, Small and Medium Units

– 10% of cost of Plant & Machinery up to Rs. 10 Cr. for Large Units

– In addition to the 3% Interest Subsidy on Working Capital Loan available under NEIDS, 2017 or any subsequent policy from Govt. of India/State Govt., units manufacturing EV or their components will be eligible for additional Interest Subsidy @ 2% on Working Capital Loan

Recycling ecosystem – Battery and EVs

– EV owners can deposit vehicle batteries that have reached their end of life at any charging point or swapping station landfills and in return get a remunerative price for the battery. Disposal of EV batteries in any other manner – e.g., in or as scrap will not be allowed.

– A nodal agency will be appointed to act as an aggregator to purchase EV batteries that are at least 70% of rated capacity. These batteries will be purchased from the charging points and battery swapping stations and will then be re-used as ‘power banks’ to store renewable energy. Batteries procured in such a manner will be auctioned to renewable generators within and outside Assam. The nodal agency shall publish the purchase price of end of life batteries every month based on auction prices achieved and a margin for itself and the charging points and battery swapping stations.

Link to the Policy Document – Assam Electric Vehicle Policy 2021