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Easy ride for electric vehicle owners in Odisha with new policy

The policy offers 100 per cent exemption of road tax on transportation of EVs purchased within the State and buyers will be fully exempted from paying vehicle registration fees.

Published: 26th February 2020 12:09 PM  |   Last Updated: 26th February 2020 12:09 PM   |  A+A-

An electric vehicle replenishing charge at a charging stations

An electric vehicle replenishing charge at a charging stations. (File photo| EPS)

Express News Service

BHUBANESWAR: Odisha transport sector is heading for a major change-over with focus on new age, eco-friendly, smart and energy saving vehicles. In another investment seeking decision to be taken at a high-level meeting on Wednesday, the Odisha Electric Vehicle Policy will be finalised.

It aims at generating an investment of Rs 15,000 crore in Electric Vehicle (EV) and component manufacturing, battery manufacturing/assembly enterprises and charging infrastructure equipment manufacturing in the State and employment potential for 30,000 people. 

As part of support measures, the policy offers 100 per cent (pc) exemption of road tax on transportation of EVs purchased within the State and buyers will be fully exempted from paying vehicle registration fees of the vehicles manufactured in the State.  

While 100 pc SGST paid on the sale of EVs manufactured, sold and registered in the State will be reimbursed to the manufacturing companies for the first five years, 15 per cent subsidy (maximum Rs 5,000 for two-wheeler, Rs 12,000 for three-wheeler, and Rs  one lakh for four-wheeler) on the base price will be paid to buyers.

Besides the income tax rebates upto Rs 1.5 lakh to customers on interest paid loan to buy EVs, the Government proposes to reimburse 100 pc net SGST on purchase of fast chargers and advanced batteries along with capital interest subsidy of 5 pc per annum for five years for procurement of plant machinery and setting up charging infrastructure with a maximum ceiling of Rs 10 lakh per unit.

The policy also offers GST waiver and incentives like tax credits and exemptions to the manufacturers for setting up units in dedicated zones apart from an interest subsidy of five pc annum for five years with maximum limit upto Rs 10 lakh for micro enterprises, Rs 20 lakh for small enterprises, Rs 40 lakh for medium enterprises and Rs  one crore for non-MSME units.

A subsidy of 25 pc or Rs 10 lakh will be extended to the first 250 charging stations that will be set up near bus depots, petrol pumps, and public parking zones. The State Government will set up dedicated parking space for EV throughout the State in next five years and support the transition to EVs by encouraging financial institutions and commercial banks to provide subsidised interest for financing such vehicles.

A Commerce and Transport department officer said EV technology is considered a game-changer in the transportation sector as it offers advantages such as eco-friendliness, cheaper fuel cost, lower maintenance expenses, energy-efficient and increased safety.

"As proposed in the policy that will be valid for five years, State Government employees can avail 100 pc interest-free loans and families with single girl child will avail 30 pc subsidy on the on-road price in the form of reimbursement for purchasing EVs," he added.

State Level Task-Force Committee and Steering Committee have already been formed to monitor implementation of the policy, develop procedures and modalities besides to improve overall governance and mobility system.

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