Punjab State Electric Vehicle Policy

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Updated: 14 May 2023

The Punjab Cabinet accorded approval to Electric Vehicle Policy (PEVP)- 2022 on February 3, 2023. The policy desires to reduce vehicular emission, create infrastructure, manufacturing, research and development, job creation, ensuring sustainability besides to establish Punjab as a favored destination for manufacturing of electric vehicles, components and batteries.

The policy shall be valid for a period of 3 years from the date of notification (i.e. 21 Feb 2023).

Objectives of the Policy

• To bring reduction in vehicular emissions by end of policy
• To promote creation of public and private EV charging infrastructure in the state
• To establish Punjab as a favoured destination for manufacturing electric vehicles, components and batteries.
• To establish Punjab as a R&D hub in electric vehicles led by a Centre of Excellence.
• To enable job creation and introduce vocational and academic training programmes for catering to Human Resource needs of ecosystem.
• To minimise damage to environment by promoting recycling and reuse of discarded batteries.

Policy Incentives

To encourage adoption of EVs in the state, the policy focuses on a combination of fiscal and non fiscal incentives for electric two wheelers, three wheelers segments, and supporting the electrification of public/shared transport and goods carriers.

E-Two Wheelers

In addition to the incentives under the FAME-II scheme, a purchase incentive of INR 3,000 per kWh battery capacity shall be provided per vehicle, subject to maximum incentive of INR 10,000 per vehicle to the first 1,00,000 registered owners of electric two-wheelers.

E-Cycles

To promote adoption of e-cycles, the policy shall provide purchase incentives to e-cycles in the state, subject to e-cycles fulling the following performance and eligibility criteria:

• Maximum speed of the e-cycle should not exceed 25km/hr.
• Unladen weight of the vehicles should not exceed 60 kg.
• Minimum range of e-cycle (passenger) should be 20 km while that of e-cycle (cargo) should be 40 km.
• E-cycles should be powered by Advanced battery (as per FAME-II)

The purchase incentive shall be applicable for first 20,000 owners of e-cycles as elaborated below :

Electric three-wheelers

– Electric Autos (L5M Category Vehicles)

• E-Autos will be given preference for fresh permits in ‘target cities’. Fleet owners will be allowed to obtain and hold e-auto permits subject to guidelines issued by Department of transport, Government of Punjab.
• In addition to the incentives under FAME-II scheme, a purchase incentive of INR 3000 per kWh of battery capacity shall be provided per vehicle, subject to maximum incentive of INR 30,000/- per vehicle to the first 5,000 registered owners of electric auto-rickshaw.
• Max total incentive – INR 15 crores

– E-Rickshaws and E-Carts

• In addition to the incentives under FAME-II scheme, a purchase incentive of INR 3000 per kWh of battery capacity shall be provided per e-rickshaw, subject to maximum incentive of INR 15,000/- per vehicle to the first 10,000 registered owners of e-rickshaw. Total max incentive will be INR 15 crores.
• The purchase incentive on e-rickshaw will be available for individual purchasers only and for one e-rickshaw per individual.
• A purchase incentive of INR 3000 per kWh of battery capacity shall be provided per e-cart, subject to maximum incentive of INR 15,000/- per vehicle to the first 8,000 registered owners of e-cart. Total max incentive will be INR 12 crores.
• Fleet owners shall be allowed to avail the purchase incentive available on e-carts under this policy.

Electric Light Commercial Vehicles (L5N and N1 Category)

• A purchase incentive of INR 3000 per kWh of battery capacity shall be provided per vehicle, subject to maximum incentive of INR 30,000/- per vehicle to the first 5,000 registered owners of e-LCV subject to maximum incentive of INR 30,000/- per L5N category vehicle and maximum incentive of INR 50,000/- per N1 category vehicle.
• The applicable purchase incentive of INR 5000 per kWh of battery capacity (not exceeding INR 50000 per vehicle) shall be reserved for first 2,500 garbage collection vehicles; these vehicles could be of L5N and N1 Category. Max total incentive is INR 12.5 crores.

Registration Fee and Road Tax

• The policy will exempt EVs from the payment of fees for the purpose of issue or renewal of registration certificate and assignment of new registration mark.
• Road Tax on all EVs or BOVs registered in Punjab shall be exempted during the policy period.

Link to Policy document