Madhya Pradesh Electric Vehicle Policy To Be Revealed Soon

by Kshitij Rawat | 16/10/2019
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Madhya Pradesh Electric Vehicle Policy will define the state's commitment to early adoption of electric cars among consumers as well as operators

With Paris Agreement in mind, the Indian government is working towards reducing the emission of greenhouse gases and keeping the rising global temperature to a minimum. While India’s initial goal of complete electrification by 2020 was too ambitious to be practical, the industry is rapidly moving towards electric mobility. Various manufacturers have introduced their EVs, or are planning to do so. This includes major, established players like Maruti Suzuki, Hyundai, Tata and Mahindra, and also a lot of new companies like MG, Aether, Revolt, etc.

Madhya Pradesh EV Policy
Madhya Pradesh will be introducing an EV policy to aid early adoption

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Central Government is already pushing for adoption of EVs. Various states have announced incentives in terms of tax-breaks and subsidies. The state of Madhya Pradesh is the latest one to jump on that bandwagon. Currently, the state government is yet to work out the finer details of its EV Policy, but the general outline is as follows:

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Free Parking

Owners of electric vehicles, both private and commercial, can avail free parking at government parking facilities. This benefit is available for a period of five years. After five years, you’ll have to pay for the same. This would be applicable for all e-rickshaws, cabs and two-wheelers. Electric buses aren’t included in this scheme.

Free Road Tax/Registration

One of the most significant incentives proposed is that Electric Vehicles will be exempt from Road Tax and Registration charges. As EVs are significantly more expensive than an equivalent petrol- or diesel-powered car, their popularity among consumers is lower. Free Road Tax and Registration will help lower the cost of ownership.

Swappable Battery And FAME Incentivised E-Rickshaws

Only e-Rickshaws that feature swappable battery packs, and are incentivised under FAME scheme, will be allowed to ply commercially on roads. The swappable batteries will help ensure that vehicles with low battery-range can function for longer without worrying about charging. That, combined with free parking, free road tax, and free registration, should ease the adoption process of EVs, especially for shared rickshaws.

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MP government is also considering stopping the registration of all auto-rickshaws other than electric ones, at least in a few major cities. There will also be a governing body that will decide the routes for these vehicles, thus minimising cluttering and wastefulness.

Policies for Electric Cars

Electric Vehicle

Electric cars on sale in MP must adhere to battery-range guidelines, whether private or commercial. The battery specs are defined in FAME guidelines. Free parking, along with tax and registration fee exempts, will be provided to every individual as described above.

Policies for Electric Buses

The current fleet of diesel buses in MP will be converted into electric ones. Financial aid will be provided by DUTF, as decided by Madhya Pradesh Urban Development and Housing Department. Such buses will be given free express permits for operations for the first five years. Moreover, electric buses will also be given a 50% rebate on toll taxes, once again for the first five years.

Policies for Charging Infrastructure

One of the biggest challenges in adoption of EVs is the lack of electric infrastructure in the country. To help improve the situation, Government of India has decided that setting-up Public Charging Stations (PCS) is a de-licensed activity. Thus, any individual, or even an organisation, who wishes to set-up a charging station can apply for connectivity issue.

Small charging facilities, for two- and three-wheelers, will only be provided within city limits. Medium charging facility, two- and three-wheelers, e-buses, heavy vehicles, and four wheelers, will be provided in cities and on highways. Malls will be provided incentives to build charging stations in their parking facilities.

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Government will also provide subsidies for the same. For small charging facilities, there will be a capital subsidy of 25% for the first 300 facilities, up to a maximum of Rs. 2 lakh. For medium charging stations, there will a maximum subsidy of Rs. 4 lakh. With large facilities, the benefits will be up to Rs. 10 lakh.

Charging Fees

Electric Vehicle Charging

The cost of charging an EV a Public Charging Station will be Rs. 6/unit for all vehicles, regardless of make and model. While the cost per unit of electricity isn’t very low, the higher efficiency of electric vehicles as compared to ICE (Internal Combustion Engine) vehicles will see good savings, especially for long distance commuters.

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Looking at the points mentioned above, Electric Vehicle Policy proposed by the state of Madhya Pradesh indeed looks promising, even though it is just a tentative one. With these policies in place, it will be easier for EVs to gain traction in the market. This will help reduce vehicle emissions on road and create a cleaner environment.

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What do you think about the new EV policies being introduced by various state governments? How do you feel about the push for electrification of vehicles on road? Comment your opinions and thoughts down below.

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