The state government has earmarked an outlay of INR 250 crore to subsidise 25,000 electric four-wheelers/ cars under the scheme. UP has additionally set aside INR 100 crore to extend incentives of INR 5000 per electric two-wheeler for 200,000 units. The subsidy scheme will be valid till 2027, or till the allocated funds are exhausted, whichever is earlier.
While the state government has specified benefits for electric two-wheelers, three-wheelers, four-wheelers and buses under this scheme, there is no mention of hybrids. A copy of the notification dated July 15, 2024 has been reviewed by ET.
As per the notification 30,000 electric three-wheelers will be eligible for incentives amounting to 15% of the ex-factory price or INR 12,000 per vehicle, whichever amount is lesser. The state has budgeted INR 36 crore to incentivise purchase of electric three-wheelers.
The government is targeting subsiding purchase of 400 electric buses under scheme by extending incentives amounting to INR 20 lakh per bus and 1000 electric goods carrier. The incentive per electric goods carrier has been capped at INR 100,000 or 10% of the ex-factory price, whichever is lower.
While an individual buyers will be incentivised for the purchase of one electric two-wheelers/three-wheeler/ four-wheeler/ bus/ goods carrier, fleet operators can avail of subsidies on purchase of maximum 10 electric two-wheelers/ three-wheelers / four-wheelers, or 5 electric buses / goods carriers.
A buyer can only avail benefits once under this scheme. In the event, the buyer purchases an electric vehicle without batteries under this scheme, he will be able to avail half of the subsidy earmarked for the category.
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