Odisha to open umbrella of incentives for OEMs for electric vehicles

The housing societies and apartments will be encouraged to install private charging stations on their premises.

Published: 02nd October 2021 08:50 AM  |   Last Updated: 02nd October 2021 08:50 AM   |  A+A-

EVs, electric vehicles

For representational purposes

Express News Service

BHUBANESWAR: In a bid to create an electric vehicles (EVs) manufacturing ecosystem, Odisha government is set to offer wide-ranging incentives and special power tariff rate for original equipment manufacturers (OEMs).

The State is exploring possibilities for collaboration with lithium ion cell manufacturers, both domestic and international, to start battery assembly plants here. It is also planning to partner with the industry for setting up a Centre of Excellence at one of the universities with  focus on research and development of design and use of EVs, improving efficiency of the vehicles and charging equipment.

As per the Odisha Electric Vehicle Policy, 2021, it has been mandated to achieve adoption of 20 per cent (pc) EVs in all vehicle segments by 2025. Financial incentives starting from Rs 5,000 to Rs 4 lakh for different categories of vehicles will be provided to EV buyers during the policy period. At the first State-level task force meeting chaired by Chief Secretary Suresh Chandra Mahapatra recently, it has been decided to promote manufacturing units for EVs in all segments by offering them incentives and tax rebates.

A senior official of the Transport department said the Industries department has been asked to immediately initiate steps to encourage setting up of manufacturing units for EVs in all segments, manufacturing facility for batteries, chargers and associated items for all types of EVs. “The department will also finalise the incentives to be offered to OEMs and explore possibilities of entering into MoUs with lithium ion cell manufacturers for setting up battery assembly plants in Odisha. A well-defined recycling policy will also be prepared,” he said.

The Energy department has been directed to offer special tariff rates to all manufacturing units related to EVs and all public and captive charging stations for commercial use in consultation with OERC. It will also make the provision of grants to the residential charging points.The housing societies and apartments will be encouraged to install private charging stations on their premises. Building bye-laws will be made for homes and workplaces to make them EV friendly with additional power load equivalent to power required for the charging points. All the public charging station operators will also be encouraged to use low cost and renewable sources of power through OERC. 

“The energy distribution companies will take the lead role in setting up charging points/ stations at various locations for providing top-up charging to the EV users. Energy operators will be invited to set up charging and battery swapping stations across all the cities and along the national and State highways as this plays a crucial role,” said the officer. Meanwhile, the Finance department has been asked to make a budgetary provision of around Rs 190 crore for the next four years (nearly Rs 47.5 crore per annum) to provide subsidy to EV buyers starting from this fiscal. The department will soon notify the date from which the purchase subsidy will be applicable.


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