Chhattisgarh to roll out its own electric vehicle policy: Key takeaways

Chhattisgarh EV Policy has approved waiver of registration fees and road tax for all electric vehicles. The state government will share a quarter of the investment to set up an EV manufacturing plant as well.
By : HT Auto Desk
| Updated on: 14 Jul 2022, 16:06 PM
Chhattisgarh EV Policy has approved waiver of registration fees and road tax for all electric vehicles. (Bloomberg)
Chhattisgarh EV Policy has approved waiver of registration fees and road tax for all electric vehicles. (Bloomberg)
Chhattisgarh EV Policy has approved waiver of registration fees and road tax for all electric vehicles. (Bloomberg)
Chhattisgarh EV Policy has approved waiver of registration fees and road tax for all electric vehicles.

Chhattisgarh has become the latest state in India to approve its own electric vehicle policy. On Thursday, the state government announced its EV policy. The Chhattisgarh EV Policy 2022 was approved during a cabinet meeting held under the chairmanship of Chief Minister Bhupesh Baghel. The policy not only aims to increase number of electric vehicles on the roads, but also develop the state as an EV manufacturing hub in coming days. 

The state government released a statement on the newly-approved EV policy. It says, "Chhattisgarh will become a manufacturing hub for electric vehicles and their accessories in the coming years. The policy will create unlimited employment opportunities for the youth. The decision will also benefit buyers and manufacturers of electric vehicles and people engaged in research and development work in the sector."

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"Under the policy, the government has set a target of five years and aims to have 15 per cent of new registrations of vehicles, either under individual use or commercial use as EVs till 2027," the statement said.

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The Chhattisgarh EV Policy will be applicable for both commercial and non-commercial vehicles. The EV Policy has approved waiver of registration fees and road tax for all electric vehicles. The policy has proposed a complete road tax exemption on all EVs purchased during the first two years from the date the it is officially rolled out. However, buyers will have 50 percent road tax waiver if an EV is bought two years after the policy is rolled out. If bought five years after the EV policy kicks in, there will be 25 percent rebate.

The state government will also share a quarter of the investment to set up an EV manufacturing plant as well. The grant will be to share the cost of plant and machinery. The state government has also announced that it will allot up to 1,000 acres of land to develop an EV park.

"The state government will provide capital subsidy of 25 per cent to the selected energy operators on charging equipment/machinery to the first 300 fast charging stations commissioned in the state up to a maximum of 10 lakh per station," it said.

Reacting to the EV policy, Suman Mishra, CEO at Mahindra Electric said the EV policy of Chhattisgarh maintains a fine balance between production and charging infrastructure. “The government’s target of 15% EV registrations within next 5 years is amply supported by the SGST manufacturing exemptions to the manufacturers, and incentives to energy operators. The policy, while being conducive to local EV production, does not provide buyers with any demand incentives and this might hamper the faster adoption of electric vehicles in the state," added Mishra.

The state will also offer SGST reimbursement for EV makers in the state till 2027. The government will also offer SGST reimbursement to companies for battery swapping technology. Sale of electric bus and other electric commercial vehicles will also attract 100 percent SGST reimbursement, if registered in Chhattisgarh. The state government will also encourage setting up EV charging stations at government and private buildings.

First Published Date: 08 Jul 2022, 08:44 AM IST
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