Odisha, Bhubaneswar – Odisha Government has released subsidies amounting to Rs. 154.27 crore to electric vehicle owners since the financial year 2022–23, Transport Minister Bibhuti Bhusan Jena said in a written statement during an assembly session.
The minister further revealed that the state has witnessed a manifold rise in EV sales since the launch of its subsidy scheme on September 1, 2021. This move to promote greener and cleaner transportation came with financial incentives for the buyers of two-wheeler and three-wheeler EVs, thereby boosting the rate of adoption for EVs in the state.
Increasing Subsidy Payout Year-over-Year
The subsidy disbursal has increased hugely over the years. According to the statement, in the financial year 2022-23, Rs 8.83 crore was disbursed. It jumped manifold in 2023-24, with subsidies worth Rs 57.21 crore being provided to EV owners. This dramatic rise reflects both the increasing popularity of electric vehicles in the state and the commitment of the government towards reducing carbon emissions through the promotion of sustainable transportation.
In all, the disbursal since FY 2022–23 crossed Rs 154.27 crore and incentivized thousands of EV owners. It was during the statement of the minister that this increased financial support was found serving significantly to push forward the green mobility agenda of the state.
Steady Growth in EV Registrations
Similarly, electric vehicle registration in Odisha has also been very positive. 14,182 EVs were registered during the 2022-23 financial year, more than doubling to 36,518 vehicles registered in 2023-24. This upward trend indicates increasing consumer confidence in electric vehicles as viable alternatives to conventional fuel-based vehicles.
So far in the current fiscal year 2024-25, Odisha has disbursed subsidy for 38,766 EVs registered up to August this year. It projects a steep increase in electric vehicle adoption over the past few months, attributed to adequate implementation of the subsidy on the ground. Subsidy Disbursement on Two-wheelers and Three-wheelers
Odisha’s subsidy scheme encompasses both two-wheelers and three-wheelers, thereby having a greater target of owners to switch toward electric mobility. The maximum subsidy permissible in the case of a two-wheeler is Rs 20,000 or Rs 5,000 per kWh of the battery’s capacity. Similarly, in the case of three-wheelers operated by electric power, a subsidy provision of Rs 30,000 is made for an easy conversion of EVs into public transport and delivery services.
The subsidy structure ensures that electric vehicles fall within the budget of a large section of the population, making it easy for people to transition from conventional combustion engine vehicles to environmentally friendly alternatives.
Sustainable Transportation in Odisha
The financial incentive to EV buyers is part of a larger policy aimed at bringing down the carbon footprint and ensuring sustainable development in Odisha. Switching over to electric mobility is seen to be one of the key solutions towards arresting the damage caused by the transportation sector on the environment with climate change and air pollution becoming serious concerns, especially in urban areas.
Inaugurating the function, Minister Bibhuti Bhusan Jena pointed out that the growing trend of electric vehicle registration right from the beginning of the subsidy scheme indicates the growing interest in electric vehicles. Further, the state government would continue the incentives extended under the policy and facilitate the establishment of essential EV infrastructure like charging points in all regions of the state.
Roadmap for Possible Adoption of EVs in Odisha
Apart from subsidies, the Odisha government has been contemplating providing further incentives for improved electric vehicle penetration in the state. In the pipeline are a comprehensive EV policy and focus on charging infrastructure with better road connectivity for EVs, with access to maximum services available for EVs at maintenance and battery-swapping stations.
This, in turn, will attract more electric vehicle manufacturers and suppliers to the state on the pretext of growing sales and, consequently, its registrations, thereby opening up new avenues for local businesses to contribute towards the development of green mobility and hence create much-needed jobs in that sector.
With the world gradually moving towards electric vehicles, Odisha would thus emerge as the frontrunner in the EV sector-not only in terms of offering incentives but also in making conscious efforts towards creating an ecosystem that would contribute to the sustainable growth of electric mobility.
Conclusion
Odisha’s determined push for the adoption of electrical vehicles through financial subsidies is beginning to bear fruit. The robust growth in EV registrations and huge subsidies disbursed-more than Rs 154.27 crore since the 2022–23 fiscal year-indicates the success of these measures in driving green mobility across the state. By offering subsidies and emphasizing the enabling environment for electric vehicle adoption, the state is making its contribution to the wider objective of saving emissions and paving a cleaner environment for future generations.
Though the number continuously shows an upward trend in EV registrations, Odisha could turn out to be a model for other states to fast-track their electric vehicle transformation journey and lead the front in India’s electric mobility revolution.
Source: Data and Statement by Odisha State Government; according to him, Transport Minister Bibhuti Bhusan Jena has said this in a written response.