Odisha To Exempt Electric Vehicles From Road Tax & Registration Fees!

Bhubaneswar: The state government is working on finalizing the Odisha Electric Vehicle Policy. The policy intends to generate Rs 15,000 crore from Electric Vehicle (EV) and component manufacturing, battery manufacturing/assembly enterprises and charging infrastructure equipment manufacturing here. It is expected to employ 30,000 people.

Here are the key proposals of the policy:

• 100 per cent exemption of road tax of EVs purchased within Odisha
• Exemption from vehicle registration fees.
• 100 per cent of SGST paid on the sale of EVs manufactured, sold and registered in Odisha will be reimbursed to the manufacturing companies for the first five years.
• 15 per cent subsidy (maximum Rs 5,000 for two-wheeler, Rs 12,000 for three-wheeler, and Rs one lakh for four-wheeler) on the base price will be paid to buyers.
• Income tax rebates up to Rs 1.5 lakh to customers on interest paid loan to buy EVs.
• Reimbursement of 100 per cent net SGST on purchase of fast chargers and advanced batteries along with capital interest subsidy of 5 pc per annum for five years for procurement of plant machinery and setting up charging infrastructure with a maximum ceiling of Rs 10 lakh per unit.
• GST waiver and incentives like tax credits and exemptions to the manufacturers for setting up units in dedicated zones apart from an interest subsidy of five pc annum for five years with maximum limit up to Rs 10 lakh for micro enterprises, Rs 20 lakh for small enterprises, Rs 40 lakh for medium enterprises and Rs one crore for non-MSME units.
• A subsidy of 25 pc or Rs 10 lakh will be extended to the first 250 charging stations that will be set up near bus depots, petrol pumps, and public parking zones.
• The state government will set up dedicated parking space for EV throughout Odisha in the next five years and support the transition to EVs by encouraging financial institutions and commercial banks to provide subsidised interest for financing such vehicles.
• State Government employees can avail 100 per cent interest-free loans and families with single girl child will avail 30 pc subsidy on the on-road price in the form of reimbursement for purchasing EVs in Odisha.

Commerce and Transport Department officials said EV tech will be a game-changer for the transportation scenario in Odisha because of environment friendliness, cheaper per km cost and maintenance, efficiency, etc.