The Madhya Pradesh government is actively working on a new policy to make electric vehicles (EVs) more affordable. Under this initiative, EVs could receive significant tax exemptions and subsidies, while traditional fuel-powered vehicles might face higher costs due to additional taxes. This strategy aligns with the state’s goals to promote greener transportation and reduce dependency on fossil fuels.
New draft policy prepared
Madhya Pradesh had first established an electric vehicle policy in 2019, aimed at incentivizing EV adoption over a period of five years. With the expiration of this initial policy, the Urban Development Department has drafted a new framework. This draft policy has been forwarded to both the departmental minister and the state government, and it is awaiting further approval from the Finance Ministry before it will be presented to the cabinet.
Proposed Subsidies and Tax Exemptions for EVs
One of the key features of the draft policy is the provision of subsidies on EV purchases, potentially offering up to 25 percent off the vehicle price. While details on eligibility and specific discount levels have not yet been made public, there are indications that the subsidy may vary based on certain criteria, with different discount slabs potentially being established.
In addition to the subsidies, tax exemptions are also under consideration for electric vehicles. By reducing the financial burden on EV buyers, the government aims to encourage more citizens to make the switch from traditional fuel vehicles to electric alternatives.
Expanding Charging Infrastructure Across the State
Recognizing that the lack of charging stations is a major hurdle for potential EV buyers, the state government has incorporated provisions for building EV charging infrastructure into the policy draft. Plans include the allocation of landbanks in every district and urban area specifically for EV charging facilities, along with the installation of 33 KVA lines to support faster charging speeds. This comprehensive approach to infrastructure aims to reassure prospective EV owners and encourage wider adoption of electric vehicles.
Higher Taxes for Petrol, Diesel, and CNG Vehicles
To further promote the shift to electric vehicles, the policy draft proposes increased taxes on conventional vehicles running on petrol, diesel, and CNG. By imposing a cess on these fuels, the government hopes to incentivize people to choose more eco-friendly electric options, ultimately aiding the state’s objectives of reducing pollution and fossil fuel dependency.
Madhya Pradesh Following the Lead of Other States
Madhya Pradesh’s draft policy aligns with similar measures being implemented in other Indian states. In Uttar Pradesh, electric vehicle buyers can receive up to a 10 percent discount, while Rajasthan, Chhattisgarh, and Gujarat also provide tax exemptions for EVs. These policies across states aim to reduce reliance on petrol and diesel, offering incentives that encourage more environmentally sustainable vehicle choices.
As the new policy moves closer to approval, Madhya Pradesh looks poised to become a more EV-friendly state, paving the way for a cleaner, greener future for its citizens.
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