To support the growth of the electric vehicle sector, the Uttar Pradesh government in India introduced the Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy, 2022, aimed at promoting electric mobility, EV manufacturing, battery production, charging infrastructure, and transportation technologies across the state.

EV adoption measures

The policy provides a 100% exemption from road tax and registration fees for eligible EVs purchased and registered in Uttar Pradesh during the policy period. The government has also introduced purchase incentives across various vehicle categories.

Electric two-wheelers are eligible for a subsidy of 15% of the ex-factory cost, up to Rs. 5,000 (US$ 50). Electric three-wheelers can receive incentives of up to Rs. 12,000. Electric four-wheelers qualify for incentives of up to Rs. 100,000. Electric buses are eligible for incentives of up to Rs. 2 million, while electric goods carriers can receive incentives of up to Rs. 100,000.

Charging infrastructure provisions

The policy includes provisions for the development of charging and battery-swapping networks across Uttar Pradesh.

Charging stations are eligible for a capital subsidy of 20% of the investment, up to Rs. 1 million per station, for the first 2,000 charging stations, subject to a minimum investment of Rs. 2.5 million. Similarly, battery-swapping stations are eligible for a subsidy of 20% of the investment, up to Rs. 500,000 per station, for the first 1,000 stations, subject to a minimum investment of Rs. 1.5 million. The policy also provides for the establishment of at least 20 charging stations and five battery-swapping stations in every district.

EV manufacturing provisions

Uttar Pradesh has set a target of attracting approximately Rs. 500 billion in investment and generating around 100,000 indirect employment opportunities through the EV sector.

Integrated EV manufacturing projects with investments of Rs. 30 billion or more are eligible for capital subsidies of up to 30%, with support of up to Rs. 10 billion per project for the first two qualifying projects.

Ultra-mega battery manufacturing projects with investments of at least Rs. 15 billion and a minimum capacity of 1 GWh are also eligible for capital subsidies of up to 30%, with support of up to Rs. 10 billion per project. Mega EV projects with investments of Rs. 5 billion or more are eligible for capital subsidies of up to 20%, with support of up to Rs. 5 billion for the first five qualifying projects.

The policy also includes provisions that may create opportunities for MSMEs involved in EV component manufacturing and battery supply chains, as well as for start-ups operating in mobility solutions, charging technology, and fleet services. The state government stated that the policy is intended to support the development of an electric mobility ecosystem across the state.