Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy 2022

The "Uttar Pradesh Electric Vehicle Manufacturing and Mobility (EVMM) Policy 2022" has been introduced by the government of Uttar Pradesh. 2019 saw the initial launch of the EVMM policy. To counter this, the Uttar Pradesh government decided to introduce a new electric vehicle manufacturing and mobility policy in 2022.

The policy shall be in effect for a period of five years following the date of notification, subject to any modifications made from time to time by the State Government. Electric vehicles (EVs), EV components, batteries, and charging/battery equipment are all covered by the policy. The "Nodal Department" for this Policy shall be the Government of Uttar Pradesh's infrastructure and industrial development department.

Objectives of Uttar Pradesh EV Policy 2022

·         To make it possible to switch to an eco-friendly transportation system, especially in urban areas. By 2030, the State Government aims to convert all government vehicles (used for business purposes) to electric vehicles. Through "Vehicle Advances" offered to them, the State Government shall encourage the State Government Employees to purchase EVs.

·         To entice manufacturers from the entire EV ecosystem to the state so they can establish production facilities and supply a global market.

·         To establish UP as a manufacturing and development center for electric vehicles.

·         To make investments possible in the creation of infrastructure for charging and battery switching.

·         To advance studies and innovations in EV electronics, battery technology, fuel cell technology, and non-ICE-based vehicles.

The State Government of Uttar Pradesh will concentrate on three pillars for promoting the EV industry in the State, namely.

1.      Creation of charging infrastructure

2.      Faster EV adoption

3.      Manufacturing

Affordability, convenience, technology, and awareness are the four success factors that will be used to determine the intervention areas for each pillar.

Charging Infrastructure-Related Incentives

The Special Tariff category for EV Charging has already been announced by the Uttar Pradesh Electricity Regulatory Commission (UPERC). In order to periodically rationalize the tariff rate for EV charging in the State, the State Government must regularly coordinate with UPERC. At charging/swapping stations or swapping kiosks with contract cumulative demand of 1MW & above, State Government shall permit "Open Access."

During the policy period, the policy will work to attract investments for the construction of at least 20 charging stations and 5 swapping stations per district. In order to achieve this, in addition to offering land at discounted rates, the following incentives must be offered:

Capital Subsidy to Service Providers:

·         The first 2000 charging stations in the state will receive a one-time capital subsidy at the rate of 20% on eligible fixed capital investments for service providers, up to a maximum of INR 10 lakh per unit.

·         The first 1,000 Swapping Stations will receive a one-time capital subsidy on eligible fixed capital investments at a rate of 20%, up to a maximum of INR 5 lakh per unit.

  

Demand Incentives

Registration Fees & Road Tax Exemption to Buyers

At a rate of 100% on any EV bought and registered in Uttar Pradesh over a three-year period following policy notification.

At a 100% rate on any electric vehicle (EV) manufactured, bought, and registered in Uttar Pradesh in the fourth and fifth years of the policy's duration.

 

Purchase Subsidy as early Bird Incentives

From the date of notification specifically made for this subsidy scheme, purchase subsidies as early bird incentives must be provided to buyers (once) through dealers over a period of one year at the following rates in defined segments.

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

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

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., with a cap of 25000 EVs.

School buses, ambulances, and other non-government E-Buses: @15% of ex-factory cost up to Rs 20 lakh per vehicle with a maximum budget outlay of Rs 80 Cr and a cap of 400 E-Buses.

E-goods carriers: @10% of ex-factory cost up to Rs 1,00,000 per vehicle with a maximum budget outlay of Rs 10 Cr and a cap of 1000 E-goods carriers.

 

Other Incentives

Up to 30% of fixed capital investments in EV and battery projects may receive capital subsidies.

Large and MSME EV/Battery projects will receive a one-time reimbursement for quality certification costs at a rate of 50% of the fees paid for obtaining certification up to INR 10 lakhs per unit.

Manufacturers are reimbursed for stamp duties.

For large and MSME EV/Battery projects, patent registration fees will be reimbursed once at a rate of 75% of the cost/expenditure incurred, up to a maximum of INR 50,000 for domestic patents and up to INR 2 lakh for international patents.

For all specified manufacturing projects, skill development incentives as stipend reimbursements shall be given once at a rate of INR 5,000 per employee per year to a maximum of the first 50 employees.

 

The UP Electric Vehicle Manufacturing and Mobility Policy 2019 was announced by IID6 Govt order No. 580/ 77-6-19-LC-02/ 18 on August 13, 2019, and will expire with the notification of this policy.

Policy Document

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