As part of this, the government has been rolling out several nationwide and state-wise policies to help the automakers, manufacturers, commercial vehicle segment as well as EV passenger vehicle buyers. Now, the UP government has come out with an extensive EV policy that provides benefits to almost the entire EV segment and its ancillaries.
With the aim to promote faster adoption of environment-friendly clean mobility solutions and create a conducive ecosystem for Electric Vehicles (EVs) in Uttar Pradesh, the Yogi Adityanath government has announced a three-pronged policy for the new electric vehicle manufacturing. The main objective of the policy is not only to create an eco-friendly transportation system in the state but also to make Uttar Pradesh a global hub for the manufacturing of electric vehicles, batteries, and associated equipment. The policy also aims to fulfil the state’s aspiration of becoming a trillion-dollar economy by leveraging its potential and opportunities in the EV industry
The new policy provides capital subsidy at the rate of 3 percent on investment subject to a maximum of Rs 1,000 crore per project to a maximum first two Ultra-Mega battery projects, investing Rs 1,500 crore or more each for setting up battery manufacturing plants in the State of minimum production capacity of 1 GWh.
MSME projects are being provided a capital subsidy of up to a maximum of Rs 5 crore per project, while large projects are being provided a capital subsidy of up to a maximum of Rs 90 crore per project.
Also, the policy provides stamp duty reimbursement to the manufacturers, which is at the rate of 100 percent to the Integrated EV Project & Ultra-Mega Battery project for setting up facilities anywhere in the State, and at the rate of 100 percent in Purvanchal and Bundelkhand region, 75 percent in Madhyanchal and Pashchimanchal (except Ghaziabad and Gautam Buddha Nagar district) and 50 percent in Ghaziabad and Gautam Buddha Nagar district to Mega/ Large/ MSME projects.
Furthermore, incentives have been provided for setting up a Centre of Excellence (CoE) by government organizations Public Sector Undertakings, or Private companies in the field of electric vehicles as a grant of 50 percent subject to a maximum of Rs 10 crore per project to a maximum of 5 such projects.