The Odisha government has announced a significant enhancement in the subsidy for registration of electric two-wheelers, increasing the amount from ₹20,000 to ₹30,000. The move comes as part of the state’s draft Electric Vehicle Policy 2025, aimed at accelerating the adoption of electric vehicles (EVs) and supporting sustainable mobility solutions across the state.
Under the revised policy, the subsidy for electric two-wheelers will be calculated at ₹5,000 per kWh of battery capacity, with a maximum cap of ₹30,000 per vehicle. This adjustment reflects the increasing availability of higher-capacity EVs in the market and seeks to make them more affordable for consumers, thereby encouraging a shift from conventional fossil-fuel-powered vehicles to clean energy alternatives.
The draft policy, which is open for stakeholder feedback before finalisation, also includes incentives for other categories of EVs:
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Four-wheeler taxis: Subsidy increased to ₹2 lakh per vehicle.
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Electric buses: Eligible for subsidies of up to ₹20 lakh.
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Commercial EVs (3.5 tonnes to 55 tonnes): Subsidies will be determined based on the vehicle’s weight and battery capacity.
One of the central objectives of the policy is to ensure that 50% of new vehicle registrations in Odisha are electric by 2030. To support this target, the government has proposed the establishment of a ₹15 crore research and development fund to promote innovation, infrastructure development, and the growth of EV technologies within the state.
The policy also emphasises the development of charging infrastructure, streamlining registration processes, and incentivising EV manufacturing and local assembly units to strengthen Odisha’s EV ecosystem. The state government aims to position Odisha as a regional hub for electric mobility, providing cleaner, cost-effective, and efficient transportation alternatives for residents.
By increasing subsidies for electric two-wheelers and other EV categories, Odisha hopes to reduce dependence on fossil fuels, lower carbon emissions, and create a sustainable environment for urban and rural mobility. The enhanced incentives are expected to stimulate consumer adoption, generate employment opportunities in the EV sector, and accelerate India’s broader goal of transitioning to electric mobility.
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