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

Last updated: Feb 2020 by Narasimhan Santhanam

This post is a part of EV Next’s EV Perspectives.

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Introduction

The government of Uttar Pradesh in November, 2018 released a draft policy for Electric Mobility development in the state and later in August, 2019 launched the original policy. The policy includes targets and objectives for industries, service providers with emphasis on charging stations, Research & Development and Startups incubation. The most notable feature is the mention of EV Zones/ Parks for manufacturing electric vehicles. Other key aspects include Fuel Cell Vehicle adoption, Hydrogen Fuel Production and Battery Recycling 

2019 – Policy Update

Policy Targets

• To attract investments of over INR 40,000 crore in the next 5 years across the electric mobility ecosystem with an employment potential for 50,000 people.
• To launch 1000 electric buses (BEVs/FCEVs), and achieve 70% EV public transportation on identified green routes in identified 10 EV cities by 2030.
• To phase out all conventional commercial fleets and logistics vehicles and achieve 50% EV mobility in Goods Transportation in identified 10 EV cities by 2024 and all cities by 2030.
• To roll out nearly 10 lakh EVs, combined across all segments of vehicles, by 2024.
• To bring in manufacturing units of high density power storage of at least 5GWh capacity in the next 5 years for smooth electric mobility
• To set up nearly 2 lakh slow and fast charging, swapping stations by 2024

Policy Framework

• EV Manufacturing Zones/Parks – The Government of Uttar Pradesh will provide incentives to the developers of private EV parks & clusters with plug and play facilities. The park must be developed over more than 150 acres of land and must include certain facilities such as r&d centres, recycling units etc.

• EV mobility – 10 cities including Noida, Ghaziabad, Meerut, Mathura, Agra, Kanpur, Lucknow, Allahabad, Gorakhpur and Varanasi will be declared as model EM cities in first phase to adopt EVs, charging & hydrogen refuelling infrastructure and new EV enabling building codes. Noida will be the pilot city for all new mobility initiatives in the first phase till 2020. The Government of Uttar Pradesh will support CSR initiatives in the Electric mobility ecosystem, as per the guidelines of the Government of India. 

• Transition to Electric Vehicles – 
  • Public Transportation – In order to promote EVs in Public Transportation, 1000 Electric buses will be introduced by the State by 2030, in phases. 25% in phase I by 2020, remaining 35% in phase II by 2022, and rest 40% in phase III by 2030. Further in this context, green routes will be promoted in the 10 model EM cities. Also, all forms of government vehicles, including vehicles under government corporations, boards and government ambulances etc. will be converted to electric vehicles by 2024.
  • Private Transportation – State Government will promote adoption of 2-wheeler EV taxies for short distance mobility, and also encourage transition of Cabs, School buses/vans, Ambulances, etc. towards adoption of electric technology. Further in 10 model EM cities, 50% electric mobility in these segments will be targeted by 2024.
  • Goods Transportation – State will promote adoption of EV in Goods transportation and will encourage EV-3 Wheelers, 4-Wheelers mini Goods vehicles in 10 Model EM cities. The State aims at achieving 50% EV in Goods Transportation in these top 10 cities by 2024, and all cities by 2030.
  • Lastly, the State Government will promote EV battery and charging equipment manufacturing in Uttar Pradesh. Also, the state will incentivise manufacturing of Hydrogen-powered fuel cells and Sower powered cells, as an alternative clean energy source.
• Charging Infrastructure 
  • The DISCOM will invest in setting up both slow and fast charging networks in government buildings and other public places. These charging points will be accessible to both government as well as private vehicles. DISCOM will plan to setup 100 DC public charging stations in each of the 10 model EM cities 
  • Fast charging stations, battery swapping infrastructure, at every 50 kilometers will be promoted for prominent highways, such as Yamuna Expressway, Agra-Lucknow Expressway and upcoming expressways including Purvanchal Expressway, with heavy density of vehicles, New apartments, high rise buildings, and technology parks in the state will be encouraged to make provisions for charging infrastructure for EVs. All new permits for commercial complexes, housing societies and residential townships with a built-up area 5,000 sq.mt and above will mandate charging stations.
• Battery recycling ecosystem – The Battery recycling sector will certainly expand with expansion in EV mobility. Large, Anchor EBUs and Service units will be provided Capital Interest Subsidy @50% per annum for 5years in the form of reimbursement on loan taken for procuring equipment/machinery for battery recycling subject to maximum ceiling of INR 1 crore per annum
• Research and Development – 
  • Incubation & Start-ups – Incubation centres facilitating EV mobility or innovative EM models will be provided incentives as per prevailing UP Startup Policy. The Start-up Fund shall also be mobilised to promote Startups promoting electric mobility in the State. 
  • Academic tie up & Research – Government of Uttar Pradesh will encourage Universities (in India and abroad) with excellence in automobile manufacturing, training and research to tie up with universities, engineering colleges in the State to enhance pedagogy and R&D promoting Electric mobility. Focus will be on next generation battery chemistries, fuel cell systems, powertrains, automotive electronics and electrical road systems (ERS). 
  • Patent & quality certifications – The MSME units as defined in this policy will be provided financial assistance towards expenses incurred for patent registration and for quality certifications. The financial assistance will be limited to 75% of the cost, subject to a maximum of 25 lakhs for obtaining patent registration and 50% of all charges, subject to a maximum of 5 Lakhs paid for obtaining quality certification. 

Fiscal Incentives

• Incentives to manufacturing units (EVMUs and EBUs) –
  • Land Subsidy – Mega Anchor Project and Ultra mega battery plant as defined in this policy will be reimbursed upto 25% of the cost of land at prevalent circle rate or purchase price, whichever is less. This incentive will be provided only on land purchased in the notified areas in Uttar Pradesh. Such notification will be issued by the Government of Uttar Pradesh from time to time.
    • Technology Transfer for alternate Clean Fuel Mobility – EBUs manufacturing alternate clean sources of fuel for electric mobility, including hydrogen based fuel cells or methanol/biofuel based fuel cells or solar based cells, etc. will be supported in technology transfer –Anchor EBUs will be reimbursed 100% cost of technology transfer towards first 5 vendor units and 75% towards next 5 vendor units, subject to maximum INR 50 lakh towards each vendor unit in the same cluster.
    • Ultra mega Battery plant will be reimbursed 50% cost of technology transfer, subject to maximum ceiling of INR 10 lakh per annum and overall ceiling of INR 50 lakh. Only 5 such projects will be considered over the period of this policy.
• Incentives to Service Units: The Service units as defined under this policy will be provided following incentives –
  • Capital Subsidy @25% on fixed capital investment (excluding land cost) to first 100 charging stations are subject to a maximum of Rs 6 lakh per charging station.
  • To set up Hydrogen enabled refuelling Infrastructure – 50% Capital interest subsidy on fixed capital investment (excluding land cost) will be provided for setting up hydrogen generation and fuelling plants in the form of reimbursement to first 10 units in UP, subject to maximum INR 50 lakh per unit over the period of this policy.
• Ease of Business incentives

Source 

2018 – Draft 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
• 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 curricula 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

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.

Read EV Next posts on electric vehicle policies for these states: Andhra Pradesh|Delhi|Karnataka|Kerala|Tamil Nadu|Maharashtra|Telangana|Uttrakhand|

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See also the blog posts:

• Highlights of Karnataka EV Policy (2017-2018) – Incentives, Subsidies, Exemptions of Electric Vehicle Policy
• Highlights of Kerala EV Policy (2017-2018) – Incentives, Subsidies, Exemptions of Electric Vehicle Policy
• Highlights of Maharashtra EV Policy (2018) – Incentives, Subsidies, Exemptions of Electric Vehicle Policy