UP Government EV Policy for 2022 has come into effect. As per the new policy, electric cars are now cheaper by up to Rs 1 lakh.
- UP government launched the 2022 Manufacturing & Mobility Policy
- The new policy will attract an investment of Rs 30,000 crores
- The electric cars get a subsidy as high as up to Rs 1 lakh
If you reside in Uttar Pradesh and plan to buy an EV, the right time is now. Why? Well, the 2022 UP government EV policy has come into effect. As per the new policy, EVs get heavy subsidy rates. The new EV policy has been designed to encourage new EV buyers as well as attract industrial investment.
2022 UP Government EV Policy Details
The new Manufacturing & Mobility policy for 2022 has been implied to all types of EVs. Additionally, bikes, scooters, three-wheelers & cars come under it. The new policy has led to huge subsidy discounts on all of the electric passenger vehicles in the state. Meanwhile, the electric car segment is the one that has got the maximum amount of subsidy. Now, electric cars like Tata Nexon EV, Hyundai Kona, etc., get subsidies of up to 15 percent. Some cars will now become up to Rs 1 lakh cheaper to buy in UP state after this. This subsidy scheme will remain alive for the next 3 years after the date of the announcement. Additionally, a budget of Rs 250 crores has been allocated for electric cars.
However, if you plan to buy an electric scooter like the Ola S1 Pro, Ather 450X Gen 3, etc., the subsidy discount stands at 15 percent. This has led to a subsidy discount of up to Rs 5,000 on some of the electric scooters. For two-wheelers, the government has allocated a budget of Rs 100 crores. Meanwhile, the electric three-wheelers have also received a good 15 percent of subsidy increment. This increment has now led to a discount of up to Rs 12,000 on selected models. To accommodate this, Rs 60 crores have been allocated by government agencies.
EV Future in UP State
Additionally, the government is also offering increased subsidies for commercial EVs. The goods carrier EVs are now being offered at a 10 percent or up to Rs 10 lakh discount rate. However, the electric buses are being offered a 15 percent or up to Rs 20 lakh discount rate. To attract more industrialization of the EV sector in the state, a new manufacturing plant is also being offered a good subsidy. The government is offering up to Rs 1,000 crores or 30 percent of total investment if a new manufacturer established a plant for making batteries or EVs.
However, to avail of this, a manufacturer needs to invest at least Rs 1,500 crores in the industry setup. The battery manufacturing limit for the subsidy stands at 1 GWh (Gigawatt hour). Additionally, to develop the charging and battery-swapping infra in the state, the government is offering to lease land for 10 years at a rate of Rs 1/kWh.
Our Verdict
As the EV sector blooms in India, the inclusion of such policies will only encourage more buyers. However, offering good discount rates initially might help but long-term subsidy management is something that the government needs to keep track of. Meanwhile, the offering of new Evs in the state is going to reduce carbon emissions.
