Bihar Electric Vehicle Policy 2019

The 2019 Bihar Electric Vehicle Policy seeks to establish an e-vehicle manufacturing eco-system in the State, achieve SDGs for the transportation system, and position Bihar as the top investment location for the EV industry. By utilizing its market strength and maximizing job opportunities in this sector in the state, the Bihar Electric Vehicle Incentive Policy 2019 seeks to position Bihar as the most sought-after investment destination.

Demand Incentives

E-mobility incentives through Transport Department:

According to paragraph 14 of FAME II dated 8.3.2019, consumers (buyers/end users) will have access to demand incentives to support manufacturing in Bihar in the form of an upfront discounted purchase price for hybrid and electric vehicles.

The following categories of vehicles shall be eligible for demand incentives:

·         Two-Wheeler (Electric)

·         Three-Wheeler (Electric)

·         Four-wheelers (EV), plug-in hybrid (PHEV), and Strong Hybrid (SHEV)

·         Electric buses

The nodal department in the Government of India for the implementation of FAME II, i.e., DHI, shall notify the definition of these. For the first 100,000 vehicles produced in Bihar, the state will provide incentives. The number of vehicles to be supported and the vehicle segment-specific incentive shall be as follows:

Electric rickshaws and Electric 2-wheelers that use lithium-ion batteries rather than traditional lead-acid batteries will receive an additional incentive of Rs. 7,000/- per kWh.

·         To upgrade to 100% electric mobility, manual pedal rickshaw drivers will receive a special grant of Rs. 10,000 per kWh. Owners of pedal rickshaw fleets are eligible for a 10% interest subsidy on loans taken to convert or upgrade to 100% electric mobility.

·         Interest subvention of 10% to the buyer of a light electric freight vehicle or e-bus.

·         If the end-user falls under the MBC or S.C./S.T. or is below the poverty line, they are eligible for a top-up subsidy of Rs. 8000/- on the ex-showroom price.

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

·         Electric vehicles are exempt from road taxes and registration fees at 100%, strong hybrid vehicles are exempt at 50%, and CNG vehicles are exempt at 25%.

·         In order to introduce leasing options for e-rickshaws in the state, the government will promote partnerships with mobility service providers.

·         Green plate registration for EVs for both personal and business use exemption from toll fees and parking meters. The purchase of EVs by all government agencies will serve to promote the 10% interest subsidy offered to purchasers of EVs made in Bihar.

·         EV incentives specifically designed for schools and hospitals by the transportation department after consulting with SIPB.

·         The Transport Department shall implement a suitable Information, Education, and Communication (IEC) Program to raise consumer awareness of and promote e-mobility.

Incentives for Manufacturers of Electric Vehicles (EVs) and its Components

·         All incentives as listed in Chapter 6 of the Bihar Industrial Investment Promotion Policy, 2016.

·         The Bihar government shall incentive the manufacturing and assembly of:

Electric vehicles (EV)

Components

Cells for EVs

Batteries for EVs

·         A manufacturing hub for EVs must be established, complete with shared spaces, a research, and development facility, and a testing area for vehicles.

·         An additional seed fund of Rs. 10 lakhs to the first fifty start-ups operating in the EV domain

Incentives for Manufacturers of EV Chargers and Service Providers

·         All incentives as mentioned in Chapter 6 of Bihar Industrial Investment Promotion Policy, 2016.

·         Commercial public EV charging stations will be eligible for a 25% capital subsidy on equipment/machinery (limited to Rs. 5 lacs per station) for the first 500 commercial public EV charging stations.

·         Across the state, the rate of Electrical power required for EV charging shall be an industrial rate of electricity.

Policy Document