The Odisha government has released its draft Electric Vehicle (EV) Policy 2025, outlining an ambitious roadmap to accelerate clean mobility and reduce vehicular emissions across the state. The draft proposes financial incentives of up to Rs 20 lakh for different categories of EVs, while also focusing on infrastructure development, skill-building, and government-led adoption. The policy, which will remain in force until December 31, 2030, seeks to ensure that 50 per cent of all new vehicle registrations in Odisha are electric by the end of the decade. It also aims to generate new employment opportunities in the EV sector and contribute to India’s long-term Net Zero 2070 commitment.
The new draft follows the Odisha EV Policy 2021, which had set a target of achieving 20 per cent penetration by 2025 but managed only about 9 per cent adoption. Officials said the revised framework has been designed to bridge this gap by widening incentives, especially for high-emission vehicles such as buses, trucks, and goods carriers, while continuing support for personal and commercial EVs.
Under the proposed incentives, e-rickshaw and e-cart buyers would receive a flat subsidy of Rs 20,000 per vehicle, while three-wheelers in the L5M and L5N categories would be eligible for Rs 30,000. Non-transport four-wheelers are proposed to get Rs 10,000 per kWh of battery capacity, capped at Rs 1.5 lakh, while transport-category cars may receive a flat subsidy of Rs 2 lakh. Goods carriers under 3.5 tons would be eligible for incentives up to Rs 1.5 lakh, while electric buses could get up to 15% of the ex-showroom cost, capped at Rs 20 lakh, with support for 1,500 units. Trucks would be entitled to subsidies between Rs 5 lakh and Rs 20 lakh depending on their weight, and retrofitted two- and three-wheelers are proposed to receive 25 to 30 per cent reimbursement of conversion costs until 2030.
Recognising the importance of charging infrastructure, the draft mandates that all fuel pumps on National Highways and State Highways, as well as OSRTC-owned bus terminals and stops, must have at least one fast charging station. The government has also proposed Viability Gap Funding for the installation of fast charging stations across highways. In addition, capital subsidies will be extended for the first 100 public battery-swapping stations in the state, aimed at boosting convenience for two- and three-wheeler owners.
The draft further specifies that incentives will be restricted to permanent residents of Odisha, with each beneficiary eligible to claim subsidies once per vehicle segment. Transfer of ownership of subsidised vehicles will be restricted for five years, while all vehicles must comply with efficiency standards set by the Transport Department and use advanced battery technologies such as lithium-ion. To oversee implementation, a State-Level Task Force headed by the Chief Secretary has been proposed. The draft also mandates that all government office vehicles be replaced with EVs within six months of final notification, while school buses,
ambulances, and police patrol vehicles must be replaced within 12 months. Tourist vehicles at heritage sites, parks, and boating facilities will also be required to shift to electric or solar-hybrid models.
Alongside these measures, the draft policy places strong emphasis on skill development. Specialised training programmes under the State Council for Technical Education & Vocational Training (SCTE&VT) will be introduced to build an EV-ready workforce, with the government aiming to train at least 500 skilled professionals by 2030 to support manufacturing, servicing, and maintenance of EVs.
The draft EV policy has been published in the Odisha Gazette, and the government has invited feedback from stakeholders and the public within 30 days of publication. Suggestions can be submitted via email, post, or in person. Officials said the final policy will incorporate relevant feedback before implementation begins. “This draft is designed to provide a strong foundation for accelerating EV adoption in Odisha while building local capacity for long-term sustainability,” a senior official stated.
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