Bihar Electric Vehicle Policy 2023

The Bihar Electric Vehicle Policy, 2023, reflects the state’s commitment to fostering electric vehicle adoption, aiming to enhance eco-friendly mobility. Enforced for 5 years, it targets a sustainable transport ecosystem and envisions 15% of new Bihar vehicles being electric by 2028.

The policy provides incentives on top of the FAME-II scheme by the Government of India. The total estimated Budgetary requirement is Rs. 56.54 crores (including rebates on motor vehicle tax, purchase incentives, charging station incentives, and power tariff incentives) during the policy period. 

Objectives of Bihar Electric Vehicle Policy, 2023:

• Establish Bihar as a model state for Electric Vehicle (EV) development.

• Build a reliable and accessible EV charging infrastructure network across the state.

• Encourage startups and investments in electric mobility and associated sectors such as data analytics, IT, and research and development.

• Enhance environmental quality by actively reducing air pollution by promoting electric vehicles.

Scope and Eligibility of Bihar EV Policy, 2023:

• Effective for 5 years from the publication date in the Bihar Gazette.

• Additional incentives in the FAME-II scheme by the Government of India and subsequent amendments.

• Incentives for charging stations are applicable only if established in compliance with Ministry of Power guidelines.

• EV manufacturing and related activities included in the high-priority sector of Bihar Industrial Investment Promotion Policy, 2016.

Incentives for Early Adoption of Electric Vehicles (EVs) – Summary:

Electric Two-Wheelers:

• Purchase incentive of Rs. 5,000/- per KWH for the first 10,000 electric two-wheelers.

• 75% rebate in Motor Vehicle Tax for the initial 10,000 electric two-wheelers.

• Subsequent electric two-wheelers receive a 50% Motor Vehicle Tax rebate.

• Aggregators must maintain specific percentages of electric two-wheelers, facing consequences for non-compliance.

• Aggregators encouraged to operate more electric two-wheelers by 2028 with permit fee exemptions.

Electric Three-Wheeler (Passenger Vehicle):

• 50% rebate in Motor Vehicle Tax for electric three-wheelers during the policy period.

• New registered electric three-wheelers exempted from permit fees.

Electric Three-Wheeler (Goods Carriage):

• 50% rebate in Motor Vehicle Tax for electric three-wheelers (Goods Carriage).

• Newly registered electric three-wheeler vehicles exempted from permit fees.

Electric Four-Wheeler:

• Purchase incentive of Rs. 10,000/- per KWH for the first 1000 electric four-wheelers.

• 75% rebate in Motor Vehicle Tax for the initial 1000 electric four-wheelers.

• Subsequent electric four-wheelers receive a 50% Motor Vehicle Tax rebate.

• Aggregators are required to maintain specific percentages of electric four-wheelers or face consequences.

• Aggregators promoted to operate more electric four-wheelers by 2028 with permit fee exemptions.

Light Electric Motor Vehicle (Goods Carriage):

• 50% rebate in Motor Vehicle Tax for light electric motor vehicles (Goods Carriage).

• Exemption in permit fee for all light electric motor vehicles during the policy period.

Heavy Electric Motor Vehicle (Bus and Goods Carriage):

• 75% rebate in Motor Vehicle Tax for the first two years for heavy electric motor vehicles (Bus and Goods Carriage).

• Subsequent heavy electric motor vehicles receive a 50% Motor Vehicle Tax rebate.

• Exemption in permit fee for all heavy electric motor vehicles during the policy period.

Common Provisions for All Categories of Vehicles:

• Owners of electric vehicles are eligible for scrapping incentives for old vehicles.

• Incentives applicable to electric vehicles complying with FAME India scheme definitions.

• Municipal authorities provide subsidized parking for personal EVs.

• Cities to prepare a parking plan for on-street EV parking with subsidized fees and charging stations.

• Beneficiaries cannot claim similar incentives under any other state government scheme.

Charging Station Infrastructure – Summary:

• Establish a comprehensive network of private and public EV charging stations in Bihar.

• Incentives applicable for three years.

Categories of Chargers and Incentives (as per Ministry of Power, Government of India guidelines):

Category-1: Electric Vehicle- AC Charger (Three Guns) Slow/Moderate Charger:

• Incentive: 75% on equipment purchase and Rs. 10,000 installation cost per charger.

• Maximum: Rs. 50,000 for the first 600 chargers.

Category-2: Electric Vehicle- AC Charger (Two Guns) Fast Charger:

• Incentive: 75% on equipment purchase and Rs. 25,000 installation cost per charger.

• Maximum: Rs. 1,50,000 for the first 300 chargers.

Category-3: Electric Vehicle- DC Charger (Two Guns) Slow/Moderate:

• Incentive: 75% on equipment purchase and Rs. 25,000 installation cost per charger.

• Maximum: Rs. 1,50,000 for the first 300 chargers.

Category-4: CCS/CHAdeMO Charger (Two Guns) Fast Charger:

• Incentive: 50% on equipment purchase and Rs. 1,00,000 installation cost per charger.

• Maximum: Rs. 10,00,000 for the first 60 chargers.

Operational Model of Public/ Private Charging Stations:

• Private Car Stations: Residential building owners, RWAs, and co-operative housing societies in Bihar with a demarcated parking area of at least 5 ECS are encouraged to install a Bharat Electric Vehicle AC charger.

• Semi-Public Charging Stations: Non-residential building owners and market associations with designated parking for 5 car spaces and 5 bike spaces are encouraged to install a Bharat EV AC charger (3-Guns).

• Public Charging Stations: Charging stations are established for commercial use only. These may be established on Government land as well as on private land.

Power Tariff

• The Energy Department, under State Government, ensures reasonable electricity rates for public and semi-public charging stations.

• A 30% subsidy on Power Tariff for these stations during the initial three years.

• Subsidy managed by the Transport Department.

• Promotion of renewable energy supply for EV charging by the State Government.

• The Transport Department will establish a system for transferring and monitoring tariff subsidies for EV users

Recycling Ecosystem – Battery and Electric Vehicle

• EV batteries typically need to be replaced once they have degraded to operating at 70-80 % of their capacities.

• Batteries that have reached their end of life will need to be either reused or recycled.

• Encouraging EV battery reuse and promoting recycling businesses in collaboration with manufacturers, emphasizing rare metal extraction and battery reutilization.

Link to policy document

Also read: Haryana EV Policy 2022 – Summary