State EV Policy: Complete Tax Exemption For EVs and BOVs in Odisha

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The Odisha government unveiled its Electric Policy 2021 to encourage faster adoption of EVs in August this year

In a bid to promote the use and shift to electric mobility in the state, the Odisha government has completely exempted all battery-operated and electric vehicles in the state from motor vehicle tax and registration fees.

The Commerce and Transport department of the state issued a notification on the 100 per cent exemption which will be applicable up to December 31, 2025.

Similar to several other states in the country, the Odisha government unveiled its Electric Policy 2021 to encourage faster adoption of EVs in August this year.

“The objective of the policy is to achieve adoption of 20 per cent electric vehicles of all automobile registrations by 2025 and to promote manufacturing of such vehicles and its components, including battery, in the state. This also aims at facilitating innovation, research & development,” Chief Secretary SC Mahapatra said.

Additionally, people buying two-wheeler will get an incentive of 15 pc on the value of the vehicle subject to a maximum of Rs 5,000 while three-wheeler buyers will get an incentive of up to Rs 10,000.

The four-wheeler buyers 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 during the four-year policy period.

The Centre had earlier amended the Central Motor Vehicle Rules, 1989 in which the battery-operated vehicles have been exempted from payment of fees for issue or renewal of registration certificate and assignment of new registration mark.

Plans are also afoot to generate an investment of Rs 15,000 crore in EV and component manufacturing, battery manufacturing/assembly enterprises and charging infrastructure equipment manufacturing in the State.

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