A subsidy of Rs 20,00 maximum will be provided in case of a two-wheeler, while Rs 30,000 will be provided for purchasing three-wheelers.
Highlighting the growth of Odisha’s electric vehicle ecosystem, transport minister Bibhuti Bhusan Jena has stated that a subsidy of Rs 154.27 crore has been provided in the FY22-23 by the state cabinet to all the Ev purchasers. To expand the market growth of the pure electric vehicles market, the Odisha EV policy was approved on August 27, 2021, aimed at magnetizing the adoption rate coupled with boosting EV components manufacturing, including batteries.
The policy incentivizes the transformation to electric mobility by providing incentives for EV scrapping, purchasing, and manufacturing. According to the transport minister, after the subsidies were rolled out in 2021, EV sales started escalating on a large scale. Initially, the subsidy of Rs 8.83 Crore was provided in FY 22-23, but it was augmented to Rs 57.21 Crore in FY 23-24.
- Two-wheeler (2W) EVs: Subsidy is available at 15 percent, subject to a cap of Rs 5000.
- Three-wheeler (3W) EVs: Subsidy is available at 15 percent, subject to a cap of Rs 12,000.
- Four-wheeler (4W) EVs: Subsidy is available at 15 percent, subject to a cap of Rs 100,000.
- Electric buses (e-buses): Subsidy is available at 10 percent, subject to a cap of Rs 2,000,000.
Minister Jena further added that around 14,182 EVs were registered during the FY 22-23, which escalated to a staggering rate of 36,518 in the next financial year. Subsidies were given for all the sold and registered vehicles, claims the minister. In the current fiscal year, subsidies were already provided for 38,766 EVs registered in Odisha. A subsidy of Rs 20,00 maximum will be provided in case of a two-wheeler, while Rs 30,000 will be provided for purchasing three-wheelers.
Subsidies were also announced for EV four-wheelers in April 2023, aiming for 20 per cent electric vehicle adoption by 2025. However, interestingly, 4.48 percent of EVs were registered in 2022, which is different from the policy’s objectives. Hence, clause 4.1.1 of the EV policy has been amended to boost sales.
