The adoption of electric vehicles for transportation will help reduce noise pollution, improve air quality, and enhance energy security. To enable the shift, the Punjab government has joined the mission to promote the sale and manufacturing of electric vehicles in the state. The Punjab government recognizes the potential of EVs as a long-term sustainable solution and, therefore has developed a dedicated policy for supporting EV adoption and manufacturing in the state.
The Punjab government will provide Rs. 300 Cr incentives over the next three years for the promotion of EV adoption. The state government will provide subsidy incentives on the purchase of electric two-wheelers, electric cycles, rickshaws, electric autos, and electric light commercial vehicles (LCVs).
Punjab’s transport minister Laljit Singh Bhullar has also announced that the state-level EV committee will look after the implementation of the EV policy. He also stresses the fast process of scrapping government buses that are older than 15 years and replacing them with electric buses.
Let’s have a comprehensive look at the Electric Vehicle Policy in Punjab.
Punjab EV Policy- Key Highlights
- The Punjab EV policy was rolled out in 2022 and would be valid for three years.
- The Punjab EV Policy aims to promote the adoption of electric vehicles in major cities including Ludhiana, Jalandhar, Amritsar, Patiala, and Bathinda, which account for more than 50% of the state’s total vehicle traffic.
- Punjab EV policy aims to achieve the target of 25% of annual vehicle registrations as Electric Vehicles by the end of the policy period.
- The Punjab EV policy will exempt all electric vehicles registered in the state from the payment of Registration fees and Road Tax during the policy period.
- Toll charges on selected state highways shall be waived off for Electric Vehicles with Green Number Plates.
- Commercial fleet businesses are encouraged to transition towards electric vehicles through the purchase incentive.
- Under the EV policy, the Punjab government will incentivize the first 1 lakh EVs registered in the state. The electric vehicles will get a subsidy incentive of up to Rs. 10,000.
- Dedicated parking spots shall be made available in all major public parking spaces across target cities.
Punjab Electric Vehicle (EV) Policy- Purchase Incentive
Electric Two-wheelers Purchase Incentive
A purchase incentive of Rs. 3000 per kWh of battery capacity shall be provided to the first 50000 electric two-wheelers registered in the state. The maximum incentive of Rs. 10,000 shall be provided per vehicle.
E-cycles Purchase Incentive
A subsidy incentive of 25% of the maximum sale price or Rs. 4000 per cycle (whichever is lower) will be provided on the sale of passenger e-cycles. Whereas, the incentive of 33% of the maximum sale price or Rs. 10, 000 per cycle (whichever is lower) will be provided on the sale of cargo e-cycles. The purchase incentive will be applicable on the purchase of the first 20,000 e-cycles.
Electric Autos Purchase Incentive
A subsidy incentive of Rs. 3000 per kWh of battery capacity shall be provided, with a cap of Rs. 30,000 per vehicle to the first 5000 electric auto purchased and registered in the state.
E-Rickshaws & E-Carts Purchase Incentive
A subsidy incentive of Rs 15,000 per vehicle will be provided to the first 10,000 electric auto rickshaws and 8,000 electric carts purchased and registered in the state.
Electric Light Commercial Vehicles Purchase Incentive
A subsidy incentive of a maximum of Rs 30,000 (per L5N category vehicle) and Rs 50,000 (N1 category vehicle) will be provided to the first 5,000 electric light commercial vehicles (LCVs) registered within Punjab.
A subsidy incentive of not exceeding Rs 50,000 per vehicle shall be reserved for the first 2500 garbage-collecting vehicles.
How to apply for Punjab EV policy?
The Transport Department, Government of Punjab, is responsible for creating a detailed operational guideline to disburse purchase incentives across various vehicle segments.
A dedicated EV portal shall be designed for effective implementation of the EV policy. More information will be soon updated on the website.