Punjab released its draft EV policy 2019 on November 15, 2019. The policy shall be valid for a period of 5 years from the date of notification and the mentioned incentives shall be extended only for the policy period. This article covers the key highlights of the draft policy document.
Some data points regarding Punjab’s Automobile Space
1. During the period between 2013-2019, 76% of new vehicle registrations in Punjab comprised of 2Ws. Passenger 3Ws were 0.6% with a number of 29,918 that made nearly 13% of total transport vehicles. The number of registered e-rickshaws was just 191 implying a large number of the e-rickshaws were not registered. New Taxi Registration number stood at 38,155.
2. More than 75% of the existing 3W fleet, 80% of registered taxis and 90% of the bus fleet are diesel-based.
3. Nearly 50% of vehicular emissions in the state are contributed by 5 cities – Ludhiana, Jalandhar, Patiala, Amritsar & Bhatinda. These cities along with Mohali are collectively referred to as ‘Target Cities’ under the policy. The most emitting vehicle segments in these cities are buses, taxis, LCVs, 3W and 2W.
The Punjab Government aims to increase the share of e-2Ws (overall) and e-autos (in target cities) to 25% of new sales over the policy period.
Demand Side incentives (on top of Central Government incentives under FAME 2):
1. 2Ws – 100% waiver on Motor Vehicle Tax and permits during the policy period.
2. 3Ws (e-autos, e-rickshaws and Goods Carriers) – 100% waiver on Motor Vehicle Tax and permits during the policy period. Only E-autos will get fresh permits in target cities. Free registration of existing e-rickshaws.
3. 4Ws (Private, Commerical and corporate fleets) – 100% (50% for Hybrids) waiver on Permit fee & Motor Vehicle Tax during the policy period. BEVs (Battery Electric Vehicles) to be given priority in all fresh procurement of vehicles/services by the government.
4. Buses – Private Bus operators to be offered 100% waiver on Permit Fee & Motor Vehicle Tax for a period of 5 years.
For vehicles manufactured in Punjab, above waivers will be applicable for a period of 10 years.
5. Green number plates – In the case of Battery Operated Vehicles, the registration mark shall be exhibited in yellow on green background for transport vehicles and for all other cases,
in white on green background.
6. Tolls on select state highways to be waived off for vehicles with green number plates, and reserved slots at public parking places
7. Special Green Zones to be declared at strategic locations in target cities where only electric vehicles shall be permitted.
8. Incentivise EV buyers through transition credits dovetailed with ‘to-be notified’ scrappage policy.
Supply Side incentives (in accordance with central government schemes):
1. Punjab State Power Corporation Limited (PSPCL) to act as the state-level nodal agency for implementation of Charging Infra. Each district to have a District Level Implementation Committee (DLIC) which will be responsible for creation/approval of charging infrastructure via a dedicated approval & inspection desk.
2. First 1000 charging points shall be eligible for 25% capital subsidy on equipment/machinery (limited up to a total of Rs. 50,000 per charging point). In case the charging equipment is manufactured in Punjab, the maximum capital subsidy shall be 50% (limited up to a total of Rs.1 Lakh per charging point).
3. Concessional lease rentals to be charged for the establishment of public charging stations at appropriate locations identified by the state.
4. Bye-laws to ensure EV Charging infrastructure availability in both residential and non-residential buildings, see below:
5. To Promote EV Manufacturing in the State, EV Related technology companies would be added to the list of service enterprises under MSME or large category eligible for financial incentives under Punjab Industrial and Business Development Policy 2017. The EV and component manufacturing units will receive the following benefits:
– 100% reimbursement of net SGST for a period of 15 years subject to a maximum 200% of fixed capital investment.
– Employment generation subsidy for each employee annually for a period of 5 years100% exemption from Change of Land Use (CLU)/ External Development (EDU) Charges for anchor units
– 100% exemption from electricity duty for 15 years
– Subject to applicable guidelines on security for night shifts, anchor units will be eligible to run three shifts (24×7) operations
Other initiatives in the offing
1. Establishment of e-Mobility Centre of Excellence to promote R&D, incubation and skill development in the EV space.
2. The mobility startups to be supported by incentives to incubators and start-ups laid down in Punjab Industrial and Business Development Policy, 2017.
3. Disposal/Dumping of EV Batteries in trash and landfills to be prohibited.
4. OEMs and private ecosystem players will be encouraged to operate schemes for Battery buyback and set up recycling facilities in the state.
5. The government would encourage the creation of an e-marketplace for resale of used batteries.
6. Special concessions for EV Units for Giga Battery Manufacturing Unit and E-tractor manufacturing units.
7. Power tariff for fleet charging / swapping stations set at ₹ 6.00 per kVAh.
8. 100% electricity duty exemption for the policy period (5 years) for EV Charging points.
To view the official document issued by the state authorities, visit Punjab EV Draft Policy 2019.