Odisha EV Policy 2021 – Summary

Status – Approved by state cabinet on Aug 27, 2021. The policy shall remain valid for a period of five years from the date of notification of this policy.

The following is the summary of the policy as per draft document released by the state government in Feb 2021 (which was later approved in Aug 2021). According to CMO ODISHA, financial incentives will be extended such as incentives for manufacturing industries, purchase incentives, scrapping incentives, interest subvention in loans, waving of road tax and registration fee. The incentives will be provided under start-up policy.

The Odisha Government aims to achieve adoption of 20% Battery Electric Vehicles in all vehicle registrations by 2025 and promote the manufacture of Electric vehicles and its components including battery in the State. The Policy focuses attention on incentivising the purchase and use of Electric Vehicles, particularly in the segment of two-wheelers, public/shared vehicles and goods carriers.

Amendment on 26th April 2023 – It is found that 4.48% of electric vehicles have been registered by the end of 2022, which is not satisfactory in comparison to the policy objective. Thus, in order to achieve the said objective, the Commerce and Transport Department of Odisha has amended the purchase incentive, which will be effective during the policy period as follows :

Table 1:

Earlier, the purchase incentives for the different categories of vehicles were as follows:

S.No.	Category of Vehicle	% of subsidy	Maximum amount of subsidy
1	Two wheelers	15%	Rs. 5000/-
2	Three wheelers	15%	Rs. 12000/-
3	Four wheelers	15%	Rs. 1,00,000/-
4	Buses	10%	Rs. 20,00,000/-

• There shall be open permit for autos (three wheelers).
• 100% interest free loans for State Government employees for purchase of EVs.
• 100% SGST on the sale of e-buses sold and registered in the state will be reimbursed during policy period.
• 100% exemption on road tax & registration fees of the e-buses for the first four years.
• Interest subvention of 5% on loans for purchase of electric Buses would be made available.

In order to avail the above incentive, the electric two wheelers have to fulfil the performance and efficiency eligibility criteria as in FAME India Phase-II as under:

S.No.	Criteria	Threshold Value
1	Min. top speed	40 km/h
2	Min. acceleration	0.65 m/s2
3	Max. electric energy consumption	Not exceeding 7kWh/ 100km
4	Warranty	At least 3 years comprehensive warranty including that of battery from the manufacturer

Goods carriages

• Purchase incentive of Rs.30,000/- to the first 5000 electric goods carriers to be registered in the State.
• Interest subvention of 5% on loans for purchase of electric goods carriers in the policy period.
• 100% SGST on the sale of electric goods carriages sold and registered in the State will be reimbursed for the policy period.
• 100% exemption on road tax & registration fees for the policy period will be made available.

Manufacturing related incentives

The Small and Micro EV Battery manufacturing Units will be facilitated with the following incentives as MSME Policy, 2016:

S.No.	Category of Enterprise	Quantum of Assistance
1	New Micro & Small Enterprise	25% of Capital Investment made in plant & machinery subject to an upper limit of Rs.1 crore
2	New Micro & Small Enterprise owned by SC/ST/Differently abled/Women/ Technical ( Degree/ Diploma) Entrepreneur	30% of Capital Investment made in plant & machinery subject to an upper limit of Rs.1.25 crore
3	New Micro & Small Enterprise set up in industrially backward districts including KBK districts	Additional Capital investment subsidy @ 5% investment made in plant & machinery with prescribed at S.No. 1 & 2

Government of Odisha will explore possibilities of entering into MoU with Li-ion battery manufacturers to start battery manufacturing in Odisha. Capital subsidy, tax, and tariff incentives and other policy support will be provided to attract private investment in dedicated areas/zones for manufacturing of Lithium Ion Batteries in the long run.

Charging infrastructure related incentives

Private Charging infrastructure

• Government will provide grant for purchase of charging equipments up to Rs.5000/- for the installation of first 20,000 private charging points.

Public Charging infrastructure

• Government shall provide capital subsidy of 25% to the selected Energy Operators for the charger installation expenses. Such subsidy will be available within one year of allocation of locations.
• Special subsidy shall be allowed for first 500 Charging Stations.
• Government will also provide 100% SGST reimbursement to the Energy Operators for purchase of batteries to be used in swapping stations.
• E.I.C., Electricity will be the Nodal Agency for setting up & monitoring of charging stations.

The policy shall also encourage the reuse of EV batteries that have reached the end of life and setting up of recycling business in collaboration with battery manufacturers.

Policy Implementation

The Transport Department shall be the Nodal Department for implementation of the Policy. A dedicated “EV Cell” shall be established in the Department for day-to-day effective implementation of the policy with relevant technical expertise.

Link to policy document

Odisha EV policy 2021 (Feb 2021 document)