Uttar Pradesh EV Manufacturing and Mobility Policy 2022 – Summary

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Status of Policy – Approved by state cabinet on 13 Oct 2022

The Uttar Pradesh government has launched the “Uttar Pradesh Electric Vehicle Manufacturing and Mobility (EVMM) Policy 2022”. The EVMM policy was first launched in the year 2019. However, the Government of Uttar Pradesh decided to launch a New Electric Vehicle Manufacturing & Mobility Policy in 2022, adapting to the current trends.

The policy shall be applicable for the period of 5 years from the date of notification, subject to any amendment made by the State Government from time to time. The policy is applicable to Electric Vehicles (EVs), EV Components, batteries, and Charging/Battery equipment. The infrastructure and Industrial Development Department of the Government of Uttar Pradesh shall be the “Nodal Department” for this Policy.

Objectives of Uttar Pradesh EV Policy 2022

1) To make UP a global hub for electric mobility development and manufacturing.

2) To enable the transition to an eco-friendly transportation system, particularly in cities. The State Government shall target 100% transition of Govt vehicles (for official use) to EV by 2030. The State Government shall encourage the State Govt Employees to purchase EV through ‘Vehicle Advances’ provided to them.

3) To enable investments for the development of charging/ battery swapping infrastructure.

4) To attract manufacturers across the EV ecosystem to the state to set up their manufacturing units and supply to a global market.

5) To promote research and innovations in non-ICE-based automobiles, battery technology, fuel cell technologies and EV electronics.

In order to achieve the above envisioned, the State Government of Uttar Pradesh shall focus on 3-pillars for promoting the EV industry in the State, viz.

(1) Creation of charging infrastructure

(2) Faster EV adoption

(3) Manufacturing

The areas of interventions under each pillar shall be based on 4-success factors viz. affordability, convenience, technology and awareness.

Charging infrastructure-related incentives

Uttar Pradesh Electricity Regulatory Commission (UPERC) has already notified Special Tariff category for EV Charging. The State Government shall regularly coordinate with UPERC for rationalising the tariff rate from time to time for EV charging in the State. State Government shall allow ‘Open Access’ at charging/ swapping station or swapping kiosk, having contract cumulative demand of 1MW & above.

The Policy shall strive to attract investments for setting up at least 20 charging stations and 5 swapping stations per district during the policy period. With this intention, besides providing land on subsidized rates following incentives shall be provided :

Capital Subsidy to Service providers –

1) Charging Stations shall be provided a one-time capital subsidy on eligible fixed capital investment for service providers at the rate of 20%, subject to a maximum of INR 10 lakh per unit to 1st 2000 Charging Stations in the State.

2) Swapping Stations shall be provided a one-time capital subsidy on eligible fixed capital investment for service providers at the rate of 20% up to max INR 5 lakh per unit to 1st 1000 Swap Station

Demand Incentives

1) Registration Fees & Road Tax exemption to buyers –

a) At the rate of 100% on any EV purchased & registered in UP over a period of 3years from policy notification.

b) At the rate of 100% on any EV manufactured, purchased & registered in UP in the 4th & 5th year of the policy period.

2) Purchase Subsidy as early bird incentives shall be provided to buyers (one time) through dealers over a period of 1 year from the date of notification specifically done for this subsidy scheme at the following rates in defined segments –

a) 2-Wheeler EV: @15% of ex-factory cost up to Rs 5,000 per vehicle subject to the maximum budget outlay of Rs 100 Cr to a maximum of 2lac EVs.

b) 3-Wheeler EV: @15% of ex-factory cost up to Rs 12,000 per vehicle subject to the maximum budget outlay of Rs 60 Cr to a maximum of 50000 EVs.

c) 4-Wheeler EV: @15% of ex-factory cost up to Rs 1 lakh per vehicle subject to a maximum budget outlay of Rs 250 Cr to a maximum of 25000 EVs.

d) E-Buses (Non-Govt, i.e. School buses, ambulances, etc.): @15% of ex-factory cost up to Rs 20 lakh per vehicle subject to the maximum budget outlay of Rs 80 Cr to a maximum of 400 E-Buses.

e) E-Goods Carriers: @10% of ex-factory cost up to Rs 1,00,000 per vehicle subject to the maximum budget outlay of Rs 10 Cr to a maximum of 1000 E-Goods Carriers.

Other incentives

a) Capital subsidy of up to 30% of fixed capital investment for EV and battery projects.

b) Stamp duty reimbursement to manufacturers.

c) Quality certification charges reimbursement shall be provided one time at the rate of 50% of fees paid for obtaining certification upto INR 10 lakhs per unit to Large and MSME EV/ Battery projects.

d) Patent registration fees reimbursement shall be provided one time at the rate of 75% of cost/expenditure incurred upto maximum INR 50,000 for acquiring domestic patent and upto INR 2 lakh for acquiring an international patent to Large and MSME EV/ Battery projects

e) Skill development incentive as reimbursement of stipend shall be provided one time at the rate of INR 5,000 per employee per year to a maximum of first 50 employees to all defined manufacturing projects.

With the notification of this policy, the UP Electric Vehicle Manufacturing and Mobility Policy 2019 notified vide IID6 Govt order No. 580/ 77-6-19-LC-02/ 18 dated 13th August 2019 shall lapse.

Link to Policy Document

UP Electric Vehicle Manufacturing and Mobility Policy 2022