Assam EV Policy 2021: Know New Assam Electric Vehicle policy with all incentives

Assam has become the first state in India to launch its dedicated Electric Vehicle (EV) policy. The state of Assam has given green light to the policy and will get implement today. The aim of this policy is to introduce at least 2 lakh new electric vehicles on the roads of Assam. To further implement this policy, the Assam government will give attractive incentives to those who will purchase electric vehicles.

According to many experts, the policy is revolutionary and it will encourage more people to opt for electric vehicles. Go through this post to know more about Assam EV Policy 2021. Here, we are sharing all crucial information regarding the policy including incentives in an easy language.

What is Assam EV Policy 2021?

In simple words, we can say that the Assam government’s Electric Vehicle policy is measure of government to curb pollution in the state. With the help of this policy, the government is planning to replace as many petrol/ diesel vehicles running in the state with electric vehicles.

In the first phase of this policy implementation, the state government of Assam is buying 200 electric and 100 CNG vehicles. The first batch of these buses will run in the city of Guwahati.

Aim and Targets of Assam Electric Vehicle Policy 2021

The government has clearly stated the targets of this EV policy. All of them are given below for you to check out.

  • As per this EV policy, the Assam government is planning to replace government vehicles (including government transport vehicles) running on petrol or diesel with Electric Vehicles.
  • According to the policy, by the year 2026, 25% of the newly registered vehicles should be Electric Vehicles (EV).
  • The state government will support the deployment of the first 2 lakh Electric vehicles by giving incentives during the first five years of the policy i.e. by 2026. Vehicles under both commercial and individual use are covered under the policy.
  • The segment-wise division of the number of EVs to be supported by the government are as follows.
    • 1 lakh two-wheelers
    • 75 thousand three-wheelers
    • 25 thousand four-wheelers
  • After the year 2025, the government will purchase only electric vehicles.
  • Apart from this, the government will slowly Phase out all fossil fuel-based commercial fleets and logistics vehicles from the state by the year 2030.

How many incentive you can get with this policy?

  • According to the Assam EV policy Incentive PDF available, you can get up to Rs. 1.5 lakh subsidy on buying a four-wheeler under Assam electric vehicle policy 2021.
  • The subsidy for two-wheelers is Rs. 20000/-. On the other hand, a subsidy of Rs. 50000/- is available for buying a three-wheeler.
  • The maximum subsidy of Rs. 1,50,000/- is available on the purchase of an electric four-wheeler.
  • Please note that subsidy also depends upon the size of batteries and ex-factory price of the vehicle. Check the following table for details.
Vehicle Segment Battery Size in KWH (approx.) Amount of the state subsidy Total State Subsidy in Rupees Maximum ex-factory price to avail incentive (in rupees)
2 wheeler 2 KWH Rs. 10000/- per KWH Rs. 20000/- Rs. 150000/-
3 wheeler 5 KWH Rs. 10000/- per KWH Rs. 50000/- Rs. 500000/-
4 wheeler 15 KWH Rs. 10000/- per KWH Rs. 150000/- Rs. 1500000/-

The above subsidies are going to be provided in addition to the benefits of the FAME-II policy. Some other benefits for buyers under the policy are as follows.

  • There is no road tax or registration charges for electric 2W, 3W, 4W vehicles for 5 years.
  • No parking charges for electric vehicles for 5 years.
  • You can also get a retro fitment incentive at the rate of 15% up to Rs. 15000/- for a 3-seater auto rickshaw.

Electricity Bill Waiver and Incentive for Charging points infrastructure

  • There is a provision in this policy for Commercial public EV charging stations for 2W, 3W, 4W vehicles to get a 25% capital subsidy on equipment/machinery subject to a maximum limit of Rs. 10 lakhs per station. Those who are looking to set up commercial public electric vehicle charging status need to act quickly because this subsidy is only for the first 500 commercial public Electric Vehicle charging stations.
  • Apart from this, the petrol pumps in the state of Assam can set up charging stations. However, they must clear the fire &safety standard norms issued by the competent authorities.
  • One of the biggest announcements of this policy is that the Assam government will exempt 90% electricity duty of EV charging stations during the policy period.
  • Please note that all 3rd party electric vehicle charging infrastructure should meet the AERC tariff order for utilities.

Incentives for Electric Auto Manufacturing Companies

In addition to buyers, the state government is also encouraging EV manufacturing companies. Another objective of the policy is to make Assam a manufacturing hub for Electric Vehicles in the country. The govt. will give attractive benefits and rebates in electricity bills to those companies involved in EV manufacturing. Details are as follows.

  • Those enterprises intending to set up facilities for manufacturing in the EV sector will get a 30% Capital Investment Subsidy available under North East Industrial Development Scheme (NEIDS), 2017.
  • In addition to NEIDS 2017 benefits, companies will also get the following subsidies.
    • 20% of the cost of Plant & Machinery up to Rs. 15 lakh for Micro Units
    • 20% of the cost of Plant & Machinery up to Rs. 50 lakh for Small Units
    • 20% of the cost of Plant & Machinery up to Rs. 1 Cr. for Medium Units
    • 10% of the cost of Plant & Machinery up to Rs. 10 Cr. for Large Units
  • NEIDS also provides a 3% Interest Subsidy on working capital loans. Now, with the implementation of Assam EV Policy 2021, units manufacturing EV or their components will be eligible for additional Interest Subsidy @ 2% on Working Capital Loans.

Government Proposal for Recycling batteries and EVs

Electric vehicles have a large number of benefits over petrol and diesel vehicle. But, one drawback is that we need to replace the battery of Electric Vehicles once they degrade at 70% to 80% of their capacities. Generally, we require changing batteries twice in a life span of 10 years. Lack of recycling or reuse of batteries can result in environmental problems. It is so because EV batteries carry a risk of giving off toxic gases if damaged during disposal. Apart from this, core materials such as lithium and cobalt are finite and very expensive to extract.

The government has introduced a few measures to resolve the problems of old batteries.

  • Owners of electric vehicles can deposit old batteries at any charging point or swapping station landfills and in return get a remunerative price for the battery.
  • Disposal of electric vehicles batteries in any other manner such as scrapping is not allowed.
  • The government will appoint a nodal agency. This agency will act as an aggregator to purchase EV batteries that are at least 70% of rated capacity.
  • The batteries purchased from battery swapping stations and charging points will be recycled and used as ‘power banks’ to store renewable energy.
  • Apart from this batteries from the battery swapping stations and charging points will also be made available at auctions to renewable generators within and outside Assam.

Government will support Electric Vehicle (EV) Research and Development

  • The Assam government is all set to join hands with premier Technical Institutes for establishing Centers of Excellence for conducting market-focused research on Battery Technologies, Battery Management, Motors, and Controllers.
  • The government will also provide excellent financial support to start-ups working in the field of EV & Battery technology research and development.
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