Punjab EV Policies

Explore The Punjab State EV Policies in Detail

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Status: Notified; Notification Date: February 21, 2023 (Aprroved by Council of Ministers on February 3, 2023); Valid for a period of 3 years from the date of notification

Objectives of the Policy:

  • To bring about reduction in vehicular emissions by the end of the policy.
  • To promote creation of public and private EV charging infrastructure in the state
  • To establish Punjab as a forward destination manufacturing electric vehicle components and batteries.
  • To establish Punjab as a R&D hub in electric vehicles led by a Centre of Excellence (CoE)
  • To enable job creation and introduce vocational skilling and up-skilling and academic training programmes for catering to human resource needs of EV ecosystem
  • To minimize damage to environment by promoting recycling and reuse of discarded batteries

Ludhiana, Jalandhar, Patiala, Amritsar, Bhatinda along with Mohali to be the ‘Target Cities’ for this EV policy.

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Electric 2-wheelers

  • The policy aims to increase the share of e-2Ws significantly to reach 25% of new sales over the policy period.
  • In addition to incentives under Fame phase II scheme, additional purchase incentives will be given. A purchase incentive of INR3,000 per kWh of battery capacity shall be provided per vehicle, subject to maximum incentive of INR10,000/- per vehicle to the first 50,000 registered owners of e-2Ws. The total incentives sum up to INR50 crore (approx.)

Electric Cycles

  • The purchase incentive shall be applicable on first 20,000 owners of e-cyles.
  • 25% of max sale price or INR4,000 per cycle (whichever is lower) for E-cycles (Passenger) for a maximum of 5,000 such cycles per year. The total incentives sum up to INR2 crore (approx.)
  • 33% of max sale price or INR10,000 per cycle (whichever is lower) for E-cycles (Cargo) for a maximum of 5,000 such cycles per year. The total incentives sum up to INR5 crore (approx.)

Electric Autos (L5M Category)

  • The policy aims to increase the share of e-autos significantly to reach 25% of new sales over the policy duration period in the target cities.
  • e-autos will be given preference for fresh permits in ‘target cities.
  • In addition to the incentives under FAME phase II scheme, additional purchase incentive will be given. A purchase incentive of INR3,000 per kWh of battery capacity shall be provided per vehicle, subject to maximum incentive of INR30,000/- per vehicle to the first 5,000 registered owners of e-autos. The total incentives sum up to INR15 crore (approx.)

e-Rickshaws and e-Carts

  • A purchase incentive of INR3,000 per kWh of battery capacity shall be provided per e-cart, subject to maximum incentive of INR15,000/- per vehicle to the first 10,000 owners of e-rickshaw and to the first 8,000 registered owners of e-cart.
  • The total incentives sum up to INR15 crore (approx.) and INR12 crore (approx.) for e-rickshaws and e-carts respectively.

Electric Light Commercial Vehicles (L5N and N1 category)

  • A purchase incentive of INR3,000 per kWh of battery capacity shall be provided to the first 5,000 registered owners of e-LCV (L5N and N1 category) subject to maximum incentive of INR30,000/- per L5N category vehicle and INR50,000/- per N1 category vehicle. The maximum total incentives will be INR12.5 crore (approx.)
  • For garbage collection vehicles (excluding the above mentioend L5N and N1 categories), purchase incentive of INR5,000 per kWh of battery capacity will be reserved for the first 2,500 garbage collection vehicles. The maximum total incentive will be INR12.5 Crore (approx.).

Electric Buses

  • The policy focuses on progressively replacing 25% of bus fleet operating in Punjab to eliminate old buses in the coming 3 years.
  • High volume inters – city bus routes to be considered for transition to EV on priority
  • PUNBUS / PRTC to operate electric buses

Across all vehicle categories

  • Policy exempts EVs from the payment of fees for the purpose of issue or renewal of registration certificate and assignment of new registration mark.
  • Road tax is also exempted for all Electric Vehicles.
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  • First five anchor EV manufacturing units to receive fixed capital incentive between INR20 crore and INR40 crore.
  • Special incentives for E-tractor manufacturing units.
  • Employment generation subsidy of INR36,000/yr per male employee and INR48,000/yr per female employee for a period of 3 years.
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  • The policy has taken technology agnostic approach to provide facilitative environment for battery swapping
  • Encourages deployment of charging stations for priority vehicle segments
  • Aims to provide accessible public charging stations to people across the state of Punjab
  • At least 1 public / semi – public charging point or battery swapping station for every 10 electric vehicles in the Target cities.
  • Within the 3-year tenure of the policy, there will be at least 1 public/semi – public charging point or battery swapping station for every 15 electric vehicles in the State
  • Within the tenure of the policy, a public / semi – public charging / battery swapping station will be available within 3 km of travel anywhere in the target cities.
  • Within the three years of the notification of the policy there will be a fast-charging stations for every 25 kms of travel on both sides of the national and state highways in the State.
  • Government of Punjab will provide subsidy of INR3,000/ charging point for first 8,000 level 1 light EV AC charging points and INR10,000/ charging point for first 2,000 DC charging points.
  • All charging and swapping stations, irrespective of their nature of use will be provided special tariffs as decided by the PSERC.
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  • Masters’ Programs: State will encourage technical institutions under Dr. B.R.Ambedkar NIT and IIT Ropar to develop and run specialised masters programs dedicated to smart mobility solutions. The state shall establish a scholarship program for the first 2,000 students, for training of new engineers in EV domain.
  • Skilling Centre: In line with the aim of setting up one skill centre for each identified industrial cluster, the Government will set up at least one skill centre under the aegis of the Punjab Skill Development Mission (PSDM)
  • Short-term Courses: To satisfy the immediate needs of the EV industry, re-skill people working in existing auto/auto-ancillaries industries and manpower required for repair/maintenance of EVs, short term courses of 3-6 months will be introduced in partnership with technical institutions and NSDC training providers.
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  • Disposal/dumping of EV batteries in trash and landfills will be prohibited.
  • The Centre of Excellence (CoE) shall support the state in adopting suitable methods of disposing and recycling of batteries and create solutions for challenges facing the industry.
  • The state will facilitate setting up of recycling units for EV batteries with suitable incentives.