The State government will constitute an electric vehicle fund to extend incentives to buyers of electric vehicles (EVs). As envisaged in the Odisha Electric Vehicles Policy 2021 announced recently, incentives will be provided to buyers till 2025.
People buying two-wheelers will get an incentive of 15 per cent (pc) of the value of the vehicle subject to a maximum of Rs 5,000 while three-wheeler buyers will get an incentive of 15 pc up to a maximum of Rs 10,000. Similarly, people purchasing four-wheelers will get an incentive up to Rs 50,000. Electric bus owners will be provided an incentive of 10 pc up to Rs 4 lakh and Rs 30,000 for transport vehicles.
Besides, people buying electric vehicles for private use will get an interest subvention of 5 pc. it is found that two wheelers constitute nearly 82% of the total vehicle population of the State. Among the rest, Light Motor Vehicles constitute 7%, 3 wheelers 3.06%, Goods vehicles 2.86%, Tractors 2.28%, Trailers 1.78%, Others 0.94% and lastly Buses only 0.19%.
Basing on the techno-economic development in the EV sector, there is need to formulate a policy for promotion of Electric vehicles in Odisha to keep pace with other states of India, Government of Odisha envisages to build Odisha a model State in promotion of EVs through adoption, adaptation, research & development apart from facilitating growth in employment. Availability of Charging Infrastructure is the key element for adoption of Electric Vehicles.
Electric Vehicles batteries need to be replaced once they have degraded to operating at 70-80% of their capacities. EVs are therefore going to out live the batteries powering them with a vehicle requiring at least two batteries in a 10 year life span. Batteries that have reached their end of life shall have to be either reused or recycled. Lack of such facilities shall have a high environmental cost. The EV batteries carry a risk of extracting toxics gases if damaged during disposal. But the core materials such as lithium and cobalt are finite and very expensive to extract.