Chandigarh has targeted 70% of all new vehicle registrations in the Union Territory (UT) to be electric vehicles (EVs) in the next five years.

As per the recently issued Chandigarh Electric Vehicle Policy 2022, the UT plans to establish itself as a ‘Model EV City’ by achieving one of the highest penetration of zero-emission vehicles amongst all Indian cities.

Chandigarh intends to leverage the city’s cycling track infrastructure to promote electric bicycle usage as a replacement for two and four-wheelers, especially for short trips.

The UT also aims to harness renewable energy sources for charging EVs.

The policy will be valid for five years from September 2022.

Purchase incentives

The first 25,000 e-bicycles purchased during the policy period will receive 25% of the cost of the bicycle as an incentive upfront. The maximum incentive will be ₹3,000 (~$36).

The first 10,000 two-wheelers registered will receive ₹5,000 (~$60)/kWh in the case of fixed batteries or ₹3,000 (~$36)/kWh for swappable batteries as an incentive. The maximum incentive for fixed batteries will be ₹30,000 (~$360) and ₹15,000 (~$182) for swappable batteries. There will also be an incentive of ₹5,000 (~$60) for battery scrapping.

The first 2,000 personal use cars costing up to ₹2 million (~$24,301) registered during the policy period will receive ₹5,000 (~$60)/kWh in case of fixed batteries. The maximum incentive will be ₹150,000 (~$1,822). There will also be an incentive of ₹7,000 (~$85) for battery scrapping.

E-bicycles purchased before March 31, 2023, will be eligible for an early bird incentive of ₹2,000 (~$24). Electric two-wheelers and cars registered in the UT before March 31, 2022, will also be eligible for an early bird incentive of ₹3,500 (~$42)/kWh. The maximum early bird incentive will be ₹50,000 (~$600).

The incentives are over and above those available under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) policy of the Government of India and apply only to those EVs and hybrid vehicles purchased and registered in Chandigarh.

Road tax and registration fees will be waived for all eligible vehicles registered during the policy period.

Charging infrastructure incentives

The first 30,000 private chargers installed during the policy period will benefit from an incentive of ₹6,000 on purchasing and installing charging equipment.

The first 50 private enterprises and individuals purchasing fast charging and battery-swapping equipment will be eligible for a 100% reimbursement on the Goods and Service Tax (GST) paid for the equipment. The maximum reimbursement amount will be ₹50,000 (~$600).

An upfront incentive of ₹500,000 (~$6,075) will apply to the first 50 public fast charging and swapping stations installed during the policy period.

Electricity duty will be exempted for public charging and swapping stations.

Innovation and technology incentives

The first ten startups related to zero-emission mobility will be eligible for a grant of ₹3000 (~$36) per seat per month. The maximum grant will be ₹18,000 (~$218) per month.

The first ten startups registering national and international patents will be reimbursed up to 50% of the cost incurred in fees and all other costs associated with the registration of Intellectual Property (IP) subject to a cap of ₹200,000 (~$2,430) for national IP and ₹500,000 (~$6,075) for international IP.

The recently-released Chhattisgarh State Electric Vehicle Policy targeted 15% of all vehicle registrations to be battery EVs by 2027.

In its EV policy, Odisha had set a target of achieving 20% of all vehicle registrations to be EVs by 2025.