In a significant step toward accelerating the transition to clean mobility, the Odisha government has announced a sharp increase in subsidies for electric vehicles (EVs) under its draft EV Policy 2025. The draft policy, which will be in force for five years after stakeholder consultation, outlines enhanced financial incentives, broader coverage across vehicle categories, and dedicated funding to support research and innovation in the state’s EV ecosystem.
Higher Subsidy for Two-Wheelers
One of the most notable highlights of the policy is the increase in subsidy for electric two-wheelers from ₹20,000 to ₹30,000. The incentive is calculated at ₹5,000 per kWh of battery capacity, with a maximum cap of ₹30,000 per vehicle. Given that two-wheelers dominate India’s mobility landscape, this move is expected to make e-scooters and e-bikes more affordable for the masses, thereby driving large-scale adoption across urban and semi-urban regions of Odisha.
Benefits for All Vehicle Segments
Beyond two-wheelers, the draft policy extends support to a wide range of vehicles, including three-wheelers, four-wheelers, taxis, trucks, and buses. The proposed subsidies include:
These measures highlight the government’s vision of making EV adoption inclusive across personal, commercial, and public transport categories.
Strengthening Innovation and R&D
Recognizing the need to build a robust EV ecosystem, the Odisha government has also proposed the creation of a dedicated R&D corpus of ₹15 crore. This fund will be used to support innovation, new product development, battery technology advancements, and collaboration with startups and research institutions. By doing so, the state aims not only to drive adoption but also to establish Odisha as a hub for EV-related innovation.
A Holistic Roadmap for Clean Mobility
The draft EV Policy 2025 of Odisha reflects a forward-looking approach by combining direct financial support with ecosystem development. The focus on affordability, fleet electrification, and public transport sustainability ensures that multiple stakeholders—individual buyers, fleet operators, and manufacturers—stand to benefit.
With India’s EV sector rapidly expanding, Odisha’s proactive measures are expected to boost both consumer confidence and industry participation. Once finalized and implemented, the policy could position the state as a leader in EV adoption, while significantly contributing to India’s national goals of reducing carbon emissions and achieving net-zero targets.
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