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Cabinet Ok For Electric Vehicle Policy

Bhubaneswar: To promote electric vehicles and its manufacturing, the State Cabinet on Friday approved the Electric Vehicle Policy, 2021.

Briefing media about the decision taken by the Cabinet, Chief Secretary Suresh Chandra Mahapatra said the police has been formulated with an objective to achieve adoption of 20 per cent battery operated electric vehicles in all vehicle registrations by 2025 and promote manufacture of electric vehicles & its components including battery in the state.

The policy will also promote innovation and facilitate research & development (R&D) in the areas relating to electric vehicles and battery, he said.

In order to reduce the rapid global temperature, Mr.Mahapatra said, it is now necessary to reduce the emissions caused by different categories of vehicles plying on the road using the traditional fossil fuels since they are contributing a lot for the climate change.

The policy will promote manufacture of electric vehicles & its components and facilitate research & development (R&D) in the areas relating to electric vehicles and battery, he said.

The State government has decided to extend financial incentives for manufacturing industries, buyers, scrapping along with interest subvention in loans, waiving of road tax & registration fees during the policy period (five years). It has also decided to give incentives under the Startup Policy.

Under the policy, the government has given 100 per cent exemption of road tax and registration fees on EVs purchased within Odisha. The State will provide 15 per cent subsidy — a maximum of Rs 5,000 for two wheelers, Rs 12,000 for three-wheelers, and Rs one lakh for four-wheelers — on the base price, officials said.

The State government employees can avail 100 per cent interest-free loans for purchasing EVs in the State. A subsidy of 10 per cent (maximum limit of Rs 20 lakhs per vehicle) will be provided to the buyers for passenger buses registered in the State.

All small and micro EV battery manufacturing units will get capital investment subject to an upper limit of Rs 1 crore. If the unit will run by a SC, ST, PwD, women, technical degrees/diploma, the upper limit is Rs 1.25 crore. Additional capital investment subsidy of 5 per cent will be provided, if the unit will be set up in industrially backward district or KBK region.

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