Bhubaneswar: Odisha government has released the draft Electric Vehicle (EV) Policy 2025, setting a roadmap to accelerate green mobility and make the state a national leader in sustainable transportation.
The draft policy aims to achieve 50 per cent electric vehicle adoption in new registrations by 2030, expanding incentives across all vehicle categories — ranging from two-wheelers and cars to buses, trucks and construction equipment.
The state government has included several significant promotional measures in the new policy as the state fell short of its earlier target under the 2021 EV Policy, which aimed for 20 per cent adoption by August 2025 but recorded only 9 per cent penetration. The state government has expanded the incentives provided on the purchase of electric two-, three-, and four-wheelers, buses, trucks, and retrofitted vehicles. The subsidies have been linked to performance and efficiency.
Under the proposed policy that will remain in force till 2030, the government enhanced the incentives provided for four-wheeler light motor vehicles (transport) or taxis from Rs 1.5 lakh to Rs 2 lakh, an official informed.
The government would also provide an incentive of Rs 20 lakh for registration of each electric bus, he added.
The official further stated that the incentives for other transport vehicles have also been revised. There will be a Rs 5 lakh incentive for vehicles weighing more than 3.5 tonne and less than 7.5 tonne, and Rs 7 lakh, Rs 16 lakh, Rs 18 lakh and Rs 20 lakh for vehicles weighing less than 12 tonne, 18.5 tonne, 35 tonne and 55 tonne, respectively.
According to the policy document, EV benefits will be extended to individuals who are permanent residents of Odisha, and each beneficiary can claim purchase incentives once for each vehicle segment.
As per the new draft EV policy, all the fuel pumps on the National Highways and State Highways, and the Odisha State Road Transport Corporation-owned bus terminals, stops across the state shall have at least one fast charging station.
The Odisha government also decided to establish Viability Gap Funding for the installation of fast charging stations across all the highways in the state.
The new EV policy announced capital subsidies for the first 100 public battery-swapping stations in the state.
The state government will also set up at least three Centres of Excellence (CoEs) focusing on Research and Development in EVs, charging infrastructure, and hydrogen-based technologies. The draft EV policy has provisions for increasing the number of incubation hubs for startups, creation of a dedicated Rs 15 crore under the “Chief Minister’s EV R&D Grant” to encourage innovation and commercialisation.
The government also proposed to ensure specialised training programmes under SCTE& VT to develop an EV-ready workforce, targeting 500 skilled professionals by 2030.
As per the draft policy, all the vehicles engaged in various government offices shall be replaced with electric vehicles within six months of the policy notification. The government will also ensure all school buses, ambulances, and PCR vans get replaced with electric vehicles within 12 months of the policy notification.
The state government has also decided to form a State EV Cell, Steering Committee, and Task Force for smooth policy implementation and stakeholder coordination.
The draft policy will remain valid until December 31, 2030. The government has invited public and stakeholder feedback within 30 days of its publication in the Odisha Gazette. With this initiative, Odisha seeks to not only transform its transport ecosystem but also contribute significantly to India’s decarbonization goals and the national Net Zero 2070 commitment.
PNN & Agencies
