How state EV policies are revving up the shift towards electric mobility – EQ Mag
Launched by the Indian government in 2015, Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) schemes I and II have been widely successful in strengthening electric vehicle (EV) adoption across India. The schemes provide financial assistance to manufacturers to set up facilities, as well as to consumers who purchase EVs – through various subsidies and tax incentives.
In addition to the FAME schemes introduced by the central government, 26 out of 29 states in India have implemented their own EV policies, which play a crucial role in boosting EV innovation and adoption in India. State policies bridge the gaps present and act as a top-up to the central government’s incentives – by offering additional measures such as research and development initiatives, subsidised EV tariffs and an exemption on electricity tax. These concessions attract more investments and contribute to the sector’s growth. The primary goal is to promote tech advancements and create job opportunities within each state.
Here’s a breakdown of how Indian states are revving up the EV sector:
Waiving road tax and registration fees:
To encourage consumers to purchase EVs, some states are waiving road tax and registration fees. This is a significant step towards making electric mobility more affordable and accessible. For instance, all EVs have been exempted from road tax payments under the Himachal Pradesh Motor Vehicles Taxation Act. Tamil Nadu has extended the exemption of road tax for EVs till December 2025. By offering such incentives, these states aim to increase EV adoption, thereby reducing the dependence on fossil fuels. This also encourages manufacturers to set up production facilities in these states, thus boosting local employment and economic growth.
States that have implemented this: Andhra Pradesh, Bihar, Delhi, Karnataka, Kerala, Madhya Pradesh, Maharasthra, Punjab, Tamil Nadu, Telangana, Uttar Pradesh and Uttarakhand
Setting up charging/swapping infrastructure:
While several states like Maharashtra, Uttar Pradesh, and Punjab are taking considerable steps to set up charging infrastructure across major cities and highways, Delhi and Maharashtra are giving battery charging and swapping equal weightage. With this, battery-swapping startups also hugely benefit as it gives them the same ecosystem of incentives that charging players have.
States that have set up this infrastructure: Telangana, Punjab, Madhya Pradesh, Uttar Pradesh and Delhi.
Offering the right subsidies/incentives:
Retrofitment Subsidy: Assam, Chandigarh, and Telangana have a retrofitment subsidy of 15% up to 15,000 INR.
Subsidy for Charging Stations: Andhra Pradesh, Bihar, Madhya Pradesh, Maharasthra and Punjab have offered subsidies for charging stations.
Electricity Incentives: State governments also include favourable electricity prices in their policies for manufacturing facilities – a feature not included in the FAME scheme. For instance, Tamil Nadu has a 100 percent exemption on electricity tax. Other states with electricity subsidies are Andhra Pradesh, Assam, Bihar, Chhattisgarh, Delhi, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharasthra, Meghalaya, Odisha, Punjab, Rajasthan, Telangana, Uttar Pradesh and Uttarakhand.
Incentives towards Sustainability: Punjab, Madhya Pradesh and Delhi offer incentives for vehicle scrapping and battery recycling.
State EV targets:
Uttar Pradesh and West Bengal governments have set a target of achieving 100% EV adoption for all public transport vehicles by 2030 and are taking steps to promote EV use in other sectors as well. Similarly, the government of Karnataka has set a target of achieving 100% EV adoption for all urban commuting by 2030. States hope to accelerate EV adoption and reduce emissions by targeting such specific sectors. This also helps to create a market where manufacturers are incentivised to produce more EVs and invest in swapping and charging infrastructure.
While state policies are introducing new and innovative measures to promote EV adoption and manufacturing, areas still need improvement – such as the better implementation of targets and incentives. Some companies are benefiting from both state and central government policies, which is a positive development. Moving forward, a coordinated effort between the governments and various industries is necessary to further accelerate the growth of the EV sector in India.
Source: PTI
