Bihar EV Policy – Summary

Status of Policy – Draft

Bihar intends to include EV Sector as high priority sector in the Bihar Industrial Investment Promotion Policy-2016 by making suitable amendments to it.

Date of Release – 14 June 2019

Vision of Bihar EV Policy 2019:

The vision of the Bihar Electric Vehicle Incentive Policy 2019 is to:

– Establish Bihar as the most preferred investment destination.

– Maximize empowerment opportunities for 50,000 persons in the state.

– Create a complete ecosystem for manufacturing and charging to supplement the GoI in its mission to bring 100% e-mobility by 2030.

– Attract on-ground investments of Rs. 1500 crore (Rs. 300 crores per annum).

– Create direct employment opportunities for 50,000 persons (10,000 p.a.) in the state.

Demand Incentives

E-mobility incentives through the Transport Department

1. Demand incentive to give impetus to manufacturing to be available for consumers in the form of an upfront reduced purchase prices

2. Following categories of vehicles shall be eligible for demand incentives:

  • Electric buses
  • Four-wheelers, Plug-in hybrid and Strong Hybrid (SHEV)
  • Three Wheeler (Electric)
  • Two Wheelers (Electric)

3. The state shall offer an incentive for the first 100,000 vehicles manufactured within the state of Bihar, whose segment-wise incentive and no. of vehicles are as under:

Sr.NoVehicle Segment Max vehicle to be supportedApprox.battery sizeApprox incentive@10,000 per kWh
1e-2 wheeler 24,0002 kWh 20,000/-
22-3 wheeler70,0005 kWh 50,000/-
3e-4 wheeler400015 kWh 150,000/-
44 wheeler (SHEV) 10001.3 kWh 13,000/-
5e-bus 1000250 kWh 25,00,000/-

      Note:- All categories of buyers shall get end-user subsidy over policy period.

4. In order to qualify for these incentives, all such vehicles must be accompanied by a 3-year comprehensive warranty including that of the battery from the manufacturer.

5. Additional incentive are also provided like:-

– Approx Rs. 7,000/- per kWh shall be given on electric rickshaw and 2 wheelers using Lithium-ion battery.

– Interest subvention of 10% to buyers of light electric vehicles or e-bus.

– A special grant of Rs. 10,000/- per kWh to manual pedal rickshaw puller for conversion electric mobility. 

– Top up subsidy of Rs. 8000/- on ex-showroom price if the end-user is below poverty line or belongs to MBC or S.C./S.T.

– In order to qualify for these incentives, all such vehicles must be accompanied by a 3-year comprehensive warranty including that of the battery from the manufacturer.

– 100% Exemption from road tax and registration fees for Electric, 50% exemption for Strong Hybrid Vehicles and 25% exemption for CNG vehicles.

– Green plate registration for EV for both private and commercial vehicles

– Exemption from toll charges and public parking lots.

– All government departments buy EVs as a strategy to promote EV.

– Interest subvention of 10% to buyers on EVs manufactured in Bihar.

– Tailor-made incentives for EVs for schools/hospitals by the transport department in consultation with SIPB.

– A suitable Information, Education and Communication (IEC) Program shall be undertaken by the Transport Dept. for creating consumer awareness and promotion of e-mobility.

Link to Policy Document

Bihar Draft EV Policy Document (as on 22 Jul 2020)

Karan Bhatia

EV enthusiast and electronics engineer from Vellore Institute of Technology. Currently working as an Embedded engineer at Zahnradfabrik Friedrichshafen.

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