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Highlights of Uttar Pradesh EV Policy 2018 – Incentives, Subsidies, Exemptions of UP Electric Vehicle Policy


Objectives of the Policy

  • To establish Uttar Pradesh as preferred destination for attracting investments in manufacturing of Electric Vehicles (EV).
  • To create employment opportunities both from supply side and demand side.
  • To create a conducive environment for shift from Internal Combustion (IC) engines to Electric Vehicles (EVs).
  • To encourage use of Hybrid EVs in Uttar Pradesh during the transition phase.
  • To develop human capital and augment the power capacity to meet the needs of the industry promoting electric mobility in the state.

Policy Framework

  • Transition to Electric Vehicles

In order to favor transition from combustible vehicles to EV vehicles, Govt. of Uttar Pradesh will promote hybrid vehicles and give incentives to boost demand of EVs in the state by encouraging use of EVs in Public transportation, Private transportation and Goods transportation.

Lastly, the State Govt. will promote EV battery and charging equipment manufacturing in Uttar Pradesh. Govt. of UP will incentivize manufacturing of lithium batteries with higher mileage per charge in Uttar Pradesh. Also, the state will incentivize manufacturing of Hydrogen-powered fuel cells and Solar powered cells, as an alternative clean energy source.

  • Charging Infrastructure – Govt. of UP will develop charging infrastructure as a commercially viable business venture in the state.
  • Charging infrastructure in public buildings, public places shall be developed, and ensure provisions to set up charging outlets, regular electric supply, etc.
  • Hybrid EVs (HEVs) during Transition Phase – HEVs are combinational vehicles from both internal combustion engine propulsion system and electric motor propulsion system. Use of HEVs not only reduces the air pollution in the environment, but also helps in conservation of natural resources
  • EV Manufacturing Zones/Parks – The State ensures quality infrastructure with comprehensive facilities to develop the state as EV manufacturing hub
  • Use of Clean Fuel – Since the prime objective of promoting Electric Vehicles is to de-pollute the transportation system, it is important to reduce the dependency of EVs on traditional sources of electricity. Adopting a more sustainable approach, Govt. of Uttar Pradesh aims at promoting use of Clean Fuel for EVs under this policy
  • Research and Development – With advent of modern technologies, it is important to encourage participation of academia, industry in adapting to low cost technologies, smart design and promoting transition to EV vehicles in the state.
  • Start up and Innovation – To strengthen the research ecosystem promoting EV manufacturing and developing the technology in the state, the State will also emphasize startup and innovation in this field.
  • Skill Development In order to augment the manpower requirements of the industry, EV Skill centres will be set-up in collaboration with the industry. Sectoral curricular and courses will be introduced in professional institutes, polytechnics and other vocational education institutions. Further, fiscal incentives will be given to trainees/students, manufacturers providing training.
  • Sustainable Ecosystem Support – In order to meet the rising power demands for EVs, Govt. of Uttar Pradesh will achieve demand side management through smart metering systems, variable tariff rates, and off-peak battery charging.
  • Private EV Parks (PEV Parks) – Both Manufacturing and Assembling Units

Govt of Uttar Pradesh incentivizes PEV Parks developed on at least 100 acres of land area in NCR districts and Kanpur, and minimum 150 acres in other districts, by private developers. These parks will be given following incentives as under UP Industrial Investment and Employment Promotion Policy 2017

Incentives – The EVMUs and/or EBUs or MSME units as defined in this policy shall be eligible for incentives on case to case basis as under UP Industrial Investment and Employment Promotion Policy 2017.

EV Mobility Incentives – In order to induce demand and create market for Electric Vehicles in the state, Government of Uttar Pradesh will extend following incentives

  • Tax exemptions to buyers – 100% exemption of road tax on Transportation EVs purchased within Uttar Pradesh, applicable over the period of this policy
  • 100% Interest free loans to State Government employees for purchase of EVs in the state.
  • 30% subsidy on road price of EV in the form of reimbursement to individual families with Single-girl child in the State on purchase of EVs, applicable over the period of this policy.
    1. Ease of Business – Taking forward the vision and mission of State’s Industrial Investment and Employment Promotion (IIEP) Policy, 2017, this policy also ensures ease of business in the state.
    2. Time bound clearances
    3. Simplifying procedures
    4. Ease of Commercial Business
    5. Industrial Security

 See also the blog posts:

Comprehensive Inputs on Indian EV Ecosystem

Check out the following sections for comprehensive inputs on Indian EV ecosystem (click on each section for more details)



Devising Your EV Strategy: White Paper from EAI.


Check out: EAI Consulting for Electric Mobility – Electric Vehicles, EV Components & EV Charging Infrastructure 

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Narasimhan Santhanam

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