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Chhattisgarh Government Approves Electric Vehicle Policy To Encourage Adoption Of EVs

Under the Chhattisgarh State Electric Vehicle Policy-2022, the government will establish a vast network of charging stations and swappable battery stations in government and private buildings.

Photo Credit :


Bhupesh Baghel

The Chhattisgarh government today approved Chhattisgarh Electric Vehicle (EV) Policy 2022 with an aim to make the state an EV manufacturing hub, provide employment opportunities and protect the environment. 

Chhattisgarh Chief Minister Bhupesh Baghel gave the approval to the policy at a meeting of the state cabinet in Raipur to ensure a healthy environment for a sustainable future for citizens, reduce carbon footprint and minimize the causes of rising concerns of rapidly increasing toxic gas emissions from vehicles, etc. leading to a deteriorating Air Quality Index. 

The government has set a target of five years and aims to have 15% of new registrations of vehicles, either under individual use or commercial use as EVs till 2027.   

The chief minister said that Chhattisgarh will become a manufacturing hub for electric vehicles and their accessories in the years to come. The policy will create unlimited employment opportunities for the youth of the state.

With the implementation of the EV policy in the state, buyers of electric vehicles as well as manufacturers and people doing research and development in this will also benefit. Electric vehicle manufacturers will also be given exemption under the electric vehicle policy. Charging stations will be built in government and private buildings. The establishment of charging infrastructure will be mandatory in the housing policy.

The policy ensures skill development training in the field of the electric vehicle, encourages the uptake of EV vehicles and provides EV charging infrastructure. The policy encourages new manufacturing in EV technology and existing automobile manufacturers to diversify in the EV manufacturing domain.

Electric vehicles, or EVs, are not only better for the environment, but are also more efficient than traditional gasoline-powered vehicles. Furthermore, rising petrol and other fuel prices have contributed to many customers' desire to switch to electric vehicles. EVs are not only cost-effective, but they also have tax advantages.

Chhattisgarh announced its own EV policy to jumpstart the adoption and manufacturing of EVs in the state. 

The government aims for rapid adoption of Battery Electric Vehicles (BEVs) so that BEVs account for 15% of all new vehicle registrations by 2027 and bring about a material improvement in the environment of Chhattisgarh by reducing emissions from the transport sector.

Skill Centers with provision for training related to jobs in the EV ecosystem will also be set up which will result in the creation of jobs. Further, the government has also planned to set up a recycling ecosystem for batteries.

To encourage people to buy electric vehicles, the state government has announced to reimburse 100% SGST and the registration fees on the sale of electric buses and electric goods carriages sold and registered in the State during the policy period. The government has also announced to reimburse SGST for the manufacturing of EVs in the State during the policy period. 

The state government will also establish high-level industrial plans that set clear targets supporting the state's EV vision. The government will also introduce an online portal for information regarding EVs, applying for EV-related incentives, information regarding charging infrastructure, etc. 

Companies manufacturing EVs, components of EV and EV battery, and charging infrastructure will be incentivised with capital subsidy.

The state government will allocate 500-1000 acres of land for developing EV Parks with plug-and-play internal infrastructure, common facilities and necessary external infrastructure. This industrial park will attract manufacturers across the EV ecosystem. An incubation centre for handholding startups will also be planned in the EV Park.

Chhattisgarh will create platforms and programs for industry participation and explore possibilities of entering into MoU with Lithium Cell Manufactures/ EV auto components to start EV components and assembly in the State.

It shall provide a capital subsidy of 25% to the selected Energy Operators on the charging equipment/ machinery to the first 300 fast-charging stations commissioned in the State up to a maximum of INR 10 Lakhs per station.

The state government will also provide 100% SGST reimbursement to the Energy Operators for the purchase of batteries to be used in switching / swapping stations. v. Provision of mobile charging vans to provide on-road assistance for EV users who run out of charge shall be explored so that they can reach the nearest charging station with minimum travel.

Discount for these segments:

Road tax and registration fee waived SGST reimbursement for the manufacture of EV, electricity tariff for EV charging. Apart from this, incentives along with capital subsidies will be given to companies making electric vehicles and their components, EV batteries, and charging infrastructure.

Emphasis on job creation:

Under this policy, setting up a wide network of charging stations and swappable battery stations, employment generation as well as skill centres for job training in the EV eco-system will be done. The participation of the local people of Chhattisgarh will be encouraged along with promoting the establishment of electric vehicle supply and charging infrastructure.

Key provisions:

-The state has set a target of procuring four lakh electric vehicles for five years by 2026-27.

- Waiver of registration fee on purchase of EV for the operational period (2027) of this policy.

-100% SGST will be reimbursed on the sale of Electric Buses and Electric Freight Vehicles sold and registered in the State.

- There will be a 100% road tax exemption on all-electric vehicles purchased during the first 2 years from the date of commencement of this policy. Road tax exemption on all EVs purchased during the next 2 years and 1 year will be 50% and 25% respectively.

-Vehicles sold and registered with batteries will be eligible for 100% original incentive. For vehicles sold without batteries, 50% of the original demand incentive amount will be received by the vehicle OEM, which will be mandatory to be transferred to the end customer.

-SGST reimbursement for the manufacture of EVs in the State during the policy period (2027).

-To develop the EV manufacturing enterprise, the state government will give a grant of 25 per cent of the cost of the plant and machinery.

-The state government will allot 500-1000 acres of land to develop an EV park. This industrial park will attract manufacturers of EVeco-systems.

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