Latest Chandigarh Electric Vehicle Policy

Overview of Chandigarh EV Policy 2023

The policy aims to achieve specific targets for different categories of EVs, such as e-2Ws, e-3Ws (passenger autos and goods), e-4W goods, e-cars (personal and commercial), and e-buses, with a varying share of EVs in new vehicle registrations by the end of the policy period. For example, the target for e-2Ws is to achieve a share of 35% in the first year, 70% in the second year, and 100% by the end of the policy period.

To support the transition to EVs, the policy also aims to set up a wide network of charging stations across the UT, with at least one charging station in every parking. The charging infrastructure will be powered by renewable energy sources, which will positively impact the indirect emissions.

In addition, the policy focuses on nurturing skill development, R&D, and startups for the electric mobility space in the UT, which will create new opportunities and support the growth of the EV industry in the region.

Overall, the policy has a comprehensive and ambitious approach to promoting EV adoption in Chandigarh and can serve as a model for other cities in India and around the world.

Electric Vehicle Adoption

In order to promote the use of electric vehicles, the city of Chandigarh has enacted the Electric Vehicle Policy. There are rebates available for the conversion kit, scrappage benefits, and lower initial car costs. Maximum subsidies start at Rs. 3,000 for e-bicycles and go up to Rs. 2,00,000 for commercial electric autos. The policy’s stated goal is to encourage a certain number of electric vehicle purchases across all categories within the policy’s stated duration. The high initial cost, range anxiety, a lack of charging infrastructure, and a lack of understanding about the lower total cost of ownership are all things that this is supposed to help with in Chandigarh.

Electric Vehicle Adoption Early Bird Incentives

The policy provides Early Bird incentives to encourage the adoption of electric vehicles and reduce vehicle pollution. The incentives range from Rs. 2,000 for e-Bicycles to Rs. 50,000 for e-4W (personal & commercial) vehicles, and are based on the vehicle’s kWh capacity. These incentives are only applicable to electric vehicles registered on or before March 31, 2023. Additionally, a scrapping incentive is available for registered electric vehicle owners if they scrap a vehicle of the same category as their electric vehicle, registered in Chandigarh.

Electric Vehicle Innovation & Technology

The policy aims to promote research and innovation in electric mobility in Chandigarh and to encourage entrepreneurship in this sector. The policy proposes several measures to support these objectives, including incentives for startups and the creation of an E-Mobility Centre of Excellence (CoE) in partnership with academic institutions, angel networks, and industry partners. The startup incentives include a grant of Rs 3000 per seat on a monthly basis, and reimbursement of up to 50% of the cost incurred by the start-up in fees and all other costs associated with the registration of national and international patents. Only startups registered with Startup India with a valid certificate of startup from GOI and with a registered office in Chandigarh are eligible for these incentives. Furthermore, only those startups that have their product/services/USP in the EV sector/ecosystem are eligible for the above incentives. The policy also encourages the reuse of EV batteries that have reached the end of their life and the setting up of recycling businesses in collaboration with battery OEMs, which will channelize battery collection for reuse. Disposal of Electric Vehicle Batteries in trash/landfills will be strictly prohibited. The guidelines for reuse and recycling of EV batteries will be notified separately, and businesses to invite battery recycling, reuse, storage, etc. will be finalized only after the amendment of the Industrial Policy 2015 and subject to the clearance of CPCC only.

Electric Vehicle Cell

The UT Electric Vehicle Implementation Committee will be supported operationally by a specialised Electric Vehicle Cell led by the CEO of CREST. A Charged Officer for Electric Vehicles will be appointed to play a crucial role in the day-to-day monitoring and implementation of programmes aimed at attaining the goals of the Electric Vehicle Policy. In addition, the Electric Vehicle Cell will be responsible for handling any complaints regarding the Chandigarh Electric Vehicle Policy.

Electric Vehicle Union Territory Fund

The Chandigarh Administration aims to create a ‘UT EV Fund’. The Fund shall be used to promote EV adoption, including providing incentives for EVs and EV infrastructure. The UT EV Fund will aggregate the funds by following ways :-

1. Through annual Budgetary Provision by UT administration.
2. Allocated funds from combination of “Clean Air Fee/Cess” on:
   a. Road tax applicable to all ICE vehicles only,
   b. Conventional Fuel,
   c. Electricity
   d. Liquor

‘Clean Air Fee/Cess’ rates in line with this provision shall be notified separately by CREST, U.T., Chandigarh.