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					</table>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 &#8216;Model EV City&#8217; by achieving one of the highest penetration of zero-emission vehicles amongst all Indian cities.
Chandigarh intends to leverage the city&#8217;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.
<a href="https://mercomindia.com/wp-content/uploads/2022/10/Year-Wise-and-Category-Wise-Targets-for-New-EV-Registrations-1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-42879 size-full" src="https://mercomindia.com/wp-content/uploads/2022/10/Year-Wise-and-Category-Wise-Targets-for-New-EV-Registrations-1.png" alt="Year-Wise and Category-Wise Targets for New EV Registrations" width="762" height="407" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Year-Wise-and-Category-Wise-Targets-for-New-EV-Registrations-1.png 762w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Year-Wise-and-Category-Wise-Targets-for-New-EV-Registrations-1-300x160.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Year-Wise-and-Category-Wise-Targets-for-New-EV-Registrations-1-650x347.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Year-Wise-and-Category-Wise-Targets-for-New-EV-Registrations-1-624x333.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/10/Year-Wise-and-Category-Wise-Targets-for-New-EV-Registrations-1-600x320.png 600w" sizes="(max-width: 762px) 100vw, 762px" /></a>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 <a href="https://mercomindia.com/chhattisgarhs-ev-policy-targets-15-percent-vehicles-electric-2027/" target="_blank" rel="noopener">targeted</a> 15% of all vehicle registrations to be battery EVs by 2027.
In its EV policy, Odisha had set a target of <a href="https://mercomindia.com/odisha-announces-ev-policy-electric-vehicle/" target="_blank" rel="noopener">achieving</a> 20% of all vehicle registrations to be EVs by 2025.

Chandigarh’s EV Policy Targets 70% of All Vehicles to Be Electric by 2027

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					</table>The Chhattisgarh State Electric Vehicle Policy, 2022 aims to accelerate the adoption of electric vehicles (EV), especially in the two-wheeler, public/shared transport, and goods carrier segments. It has targeted 15% of all vehicle registrations to be battery electric vehicles (BEV) by 2027.
The policy will be valid for five years from April 2022 and extendable to 10 years.
The state’s <a href="https://cgtransport.gov.in/" target="_blank" rel="noopener">Transport Department</a> will be responsible for planning, implementation, and review of the policy.
Purchase and scrapping incentives, waiver of road tax and registration fees, the establishment of a wide network of charging stations and swappable battery stations, and the development of a publicly-owned database have been proposed in the policy.
Purchase incentives
The state’s purchase incentives are driven by the goal of minimizing the viability gap between an internal combustion vehicle and an EV.
The state will offer financial support up to 10% of the cost of the vehicle (excluding tax) or ₹150,000 (~$1,883) whichever is lower, for the purchase of EVs, either for individual use or commercial use, for five years until 2026-27.
Hybrid EVs will be eligible for a 50% purchase incentive provided to fully electric vehicles.
A 100% waiver of road tax on all the EVs purchased will be available during the first two years from the commencement of the policy. There will be a 50% and 25% waiver on road tax on EVs purchased during the next two years and one year, respectively.
Additional incentives
Accelerating the pace of EV adoption, especially in the mass-user category, is at the heart of the policy. Currently, two-wheelers constitute 81% of the total number of vehicles registered in the state.
<img loading="lazy" decoding="async" class="aligncenter size-full wp-image-41249" src="https://mercomindia.com/wp-content/uploads/2022/09/Chattisgarh-EV-Policy-01.png" alt="Chattisgarh EV Policy 01" width="722" height="242" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/09/Chattisgarh-EV-Policy-01.png 722w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/09/Chattisgarh-EV-Policy-01-300x101.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/09/Chattisgarh-EV-Policy-01-650x218.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/09/Chattisgarh-EV-Policy-01-624x209.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/09/Chattisgarh-EV-Policy-01-600x201.png 600w" sizes="(max-width: 722px) 100vw, 722px" />
A 50% subsidized parking for all personal EVs, and additional monetary aid for those who wish to switch to EVs through a dedicated transportation fund, will be offered. Registration fees on the purchase of two, three, and four-wheelers will be fully exempted during the policy period.
Manufacturing incentives
The government aims to make Chhattisgarh a manufacturing hub for EVs and create employment opportunities in the sector. The policy encourages local investors and manufacturers to collaborate with multinational agencies to boost the supply of EVs and set up charging infrastructure.
A state EV Fund will function exclusively, and all the incentives under the Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006, will be extended to the manufacturers under the industrial policy until 2024.
The government will allocate 500-1,000 acres of land to develop EV Parks with plug-and-play internal infrastructure, common facilities, and external infrastructure.
Developers of auto clusters and automotive manufacturing centers specific to EVs will be provided financial assistance of 50% of fixed capital investments, up to a maximum of ₹200 million (~$2.51 million).
New MSME EV battery manufacturing units will be provided financial assistance up to 25% of the capital investment made in plant and machinery subject to an upper limit of ₹10 million ($125,436).
<img loading="lazy" decoding="async" class="aligncenter size-full wp-image-41253" src="https://mercomindia.com/wp-content/uploads/2022/09/Chhattisgarh-EV-Policy-02-1.png" alt="Chhattisgarh EV Policy 02" width="577" height="278" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/09/Chhattisgarh-EV-Policy-02-1.png 577w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/09/Chhattisgarh-EV-Policy-02-1-300x145.png 300w" sizes="(max-width: 577px) 100vw, 577px" />
As part of the capital subsidy of fixed capital investment (FCI), 25% of FCI up to a maximum of ₹1.5 million (~$18,831) for micro industries, 20% of FCI up to a maximum of ₹4 million (~$50,217) for small and ₹5 million (~$62,700) for medium industries will be provided.
Additionally, 10% of FCI up to a maximum of ₹100 million (~$1.26 million) for the first two units under large industries, in each segment of EV, battery, and charging equipment, and 10% of FCI up to a maximum of ₹200 million (~$2.51 million) for first two units, under the mega category, in each segment of EV, battery and charging equipment will be provided.
The policy also proposes tax, stamp duty, tariff incentives, and other policy support for EV manufacturing.
Charging infrastructure incentives
The policy proposes a capital subsidy of 25% to the selected public or private energy operators on charging equipment/machinery to the first 300 fast charging stations commissioned in the state up to a maximum of ₹ 1 million (~$12,553) per station.
Recycling Ecosystem and reuse
Since EVs are prone to outlive the batteries that power them, and each EV needs two batteries for a ten-year life span, the state has devised a proactive plan for battery recycling and reuse.
Energy operators and battery swapping operators will operate as end-of-life battery recycling agencies. A nodal agency will be appointed to facilitate and monitor the sale and purchase of EV batteries.
The government will also encourage the setting up of recycling businesses in collaboration with battery and EV manufacturers for &#8216;urban mining&#8217; of rare materials within the battery for reuse.
Government think tank NITI Aayog <a href="https://mercomindia.com/draft-battery-swapping-policy/" target="_blank" rel="noopener">issued</a> the draft battery-swapping policy addressing the key technical, regulatory, institutional, and financing challenges to help India develop battery-swapping ecosystems to unlock the large-scale adoption of battery-swapping.
Recently, Odisha, in its EV policy, set a target of <a href="https://mercomindia.com/odisha-announces-ev-policy-electric-vehicle/" target="_blank" rel="noopener">achieving</a> 20% of all vehicle registrations to be EVs by 2025.

Chhattisgarh’s EV Policy Targets 15% of All Vehicles to Be Electric by 2027

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