Odisha to Offer ₹30,000 Subsidy on Electric Two-Wheelers Under New EV Policy

The Odisha government is set to boost the adoption of electric vehicles by increasing the subsidy on electric two-wheelers from ₹20,000 to ₹30,000. This initiative is part of the state’s new Draft Electric Vehicle (EV) Policy 2025, aimed at promoting green mobility and reducing carbon emissions. Once finalized and implemented, the policy will remain effective for five years and will include suggestions and feedback from stakeholders within the EV industry.

According to the draft policy, an incentive of ₹5,000 per kilowatt-hour (kWh) of battery capacity will be provided on electric two-wheelers, with a maximum subsidy cap of ₹30,000. This marks a significant increase from the previous subsidy limit of ₹20,000. Officials believe that this move will encourage more people in the state to switch to electric two-wheelers, especially as higher-capacity models are becoming more common in the market.

The new draft policy also includes provisions for expanding subsidies across other EV categories. For instance, the government plans to raise incentives on four-wheeled electric vehicles such as taxis and light motor transport vehicles from ₹1.5 lakh to ₹2 lakh. Additionally, for electric buses, the state will offer a substantial incentive of ₹20 lakh. These measures are intended to create a comprehensive framework that supports all segments of the EV ecosystem, including private vehicles, public transport, and commercial use.

Only permanent residents of Odisha will be eligible to benefit from these subsidies. The policy states that each resident can claim the incentive only once per vehicle segment. To further strengthen the EV ecosystem, the draft also proposes the creation of a dedicated ₹15 crore fund to support research and development activities related to electric mobility in the state.

The state had earlier launched the Odisha Electric Vehicle Policy 2021 with the goal of making 20 percent of all new vehicle registrations electric within four years. However, the adoption rate fell short, reaching only 9 percent. To address this gap and accelerate EV adoption, the state government has now set a new target of achieving 50 percent EV registrations in new vehicle sales by the year 2030. With enhanced incentives and a revised roadmap, Odisha aims to become a key player in India’s transition to sustainable transportation.