Odisha Sees Rise In EV Sales, Over Rs 154 Cr Subsidy Provided Since FY’23: Minister

Image by Paul Brennan from Pixabay

Bhubaneswar: Subsidy has ramped up sale of electric vehicles (EVs) in Odisha, according Transport Minister Bibhuti Bhusan Jena.

“The EVs sales have increased since the government started giving subsidy from September 1, 2021. So far, subsidies amounting toRs 154.27 crore have been given to EV owners since 2022-23 financial year,” he told the state Assembly in a written statement.

A subsidy of Rs 8.83 crore was disbursed during 2022-23 when 14,182 EVs were registered and it rose to Rs 57.21 crore during 2023-24 with 36,518 EVs being registered in the state.

During 2024-25 till August, the Odisha government has already distributed subsidies for 38,766 EVs.

A maximum subsidy of Rs 20,000 is being provided for each two-wheeler (a subsidy of Rs 5,000 per kilowatt hour) and Rs 30,000 subsidy for electric-operated three-wheelers, Jena added.

The statement came on a day when Union Minister Nitin Gadkari said increased demand for EVS has led to a reduction in costs, making further financial incentives unnecessary. “Consumers are now opting for electric and CNG vehicles of their own accord, and I believe substantial subsidies for electric vehicles are no longer required,” the Minister for Road Transport and Highways added.

Highlighting the lower GST rates on electric vehicles compared to those on petrol and diesel vehicles, he further added that government subsidies for electric vehicle production are no longer justified. At present, electric vehicles attract a 5 per cent GST while internal combustion engines are taxed at 28 per cent.