Chhattisgarh Government Approves EV Policy; Aims to Generate Employment

The Chhattisgarh government on Thursday approved its electric vehicle (EV) policy, which aims to develop the state as a manufacturing hub, protect environment and create employment opportunities. The policy in which road tax and registration fee waivers are provisioned will also encourage the use of EVs, thereby ensuring relief to people bearing the brunt of rising fuel prices, an official said.

The nod to Chhattisgarh EV Policy 2022 was granted during a cabinet meeting chaired by Chief Minister Bhupesh Baghel at his official residence here, he said.

"Chhattisgarh will become a manufacturing hub for electric vehicles and their accessories in the coming years. The policy will create unlimited employment opportunities for the youth. The decision will also benefit buyers and manufacturers of electric vehicles and people engaged in research and development work in the sector," a release quoted Baghel as saying.

The policy aims to ensure a healthy environment for a sustainable future for citizens, reduce carbon footprint and minimise the causes of rising concerns of rapidly increasing toxic gas emissions from vehicles, etc, the statement said.

The operations of both commercial and non-commercial vehicles will be encouraged under the policy, it said.

"Under the policy, the government has set a target of five years and aims to have 15 percent of new registrations of vehicles, either under individual use or commercial use as EVs till 2027," it said.

The state government has announced waiver in the registration fees on the sale of EVs registered in the state during the policy period. Besides, there will be a complete road tax exemption on all EVs purchased during the first two years from the date of commencement of this policy, it was stated.

After two years, there will be a 50 percent road tax exemption on EVs purchased in the next two years, while in the fifth year, there will be 25 percent rebate, the release said.

To develop the manufacturing of EVs, the state government will give a grant of 25 percent of the cost of plant and machinery. It will allot 500-1,000 acres of land to develop an EV park to attract manufacturers, it said.

"The state government will provide capital subsidy of 25 percent to the selected energy operators on charging equipment/machinery to the first 300 fast charging stations commissioned in the state up to a maximum of Rs. 10 lakh per station,” it said.

The state has provisioned SGST reimbursement for manufacturers of EVs in the state during the policy period (till 2027), it said.

The government will also provide complete SGST reimbursement to energy operators for purchase of batteries to be used in switching / swapping stations, while 100 percent SGST will be reimbursed on the sale of electric buses and electric freight vehicles sold and registered in the state, it said.

Charging stations will be built in the government and private buildings, the release said.