Government of Odisha announced full exemption of motor vehicles taxes and registration fees on electric vehicles (EVs) in the state.

Highlights

• This decision was taken for encouraging faster adoption of EVs.
• Exemption was granted under the Odisha Motor Vehicles Taxation Act and is applicable till 2025.
• State government also proposed to extend some incentives for the manufacturers, buyers, batteries & charging stations of electric vehicles in accordance with Odisha Electric Vehicle Policy.
• Government announced an exemption of 100 per cent on motor vehicles taxes and registration fees for battery-operated vehicles.

Proposed Subsidies

State Transport Ministry has proposed to extend 15% subsidy on two-wheelers, three-wheelers as well as four-wheelers. Maximum amount on respective vehicles should not exceed Rs 5,000 Rs 12,000 and Rs 100,000. Ministry also proposed to provide interest-free loan on the electric vehicles to state government employees. It also proposes to provide incentives to government departments & PSUs for hiring such vehicles. Other proposals include subsidized parking fees Electric vehicles in municipal areas and battery charging facility across parking places.

Background

Transport department had submitted a proposal to the government to allow subsidy on e-vehicles in order to attract customers. Government has now approved the proposal. However, these subsidies will not be provided as per the battery capacity, like other states including Delhi and Gujarat are providing.

e-vehicle policy

states like Delhi, Kerala, Gujarat, Andhra Pradesh and Maharashtra have implemented the “e-vehicle policy”, apart from FAME II scheme.