Punjab Aims 25% EV Registrations by 2027, Incentivizes Giga Battery Manufacturing

The Punjab EV policy offers a slew of incentives for electric vehicle purchase


The draft Punjab Electric Vehicle Policy 2022 has targeted 25% of annual vehicle registrations to be electric vehicles (EVs) by 2027.

The draft policy issued by the Punjab Department of Transport seeks to bolster the manufacturing of EV components and batteries.

Besides offering a slew of incentives for the purchase of EVs, Punjab will encourage battery producers to set up at least one Giga battery production unit in the state by providing incentives.

The policy encourages the setting up of EV/battery units in the new industrial park located over 380 acres in Dhanansu village of Ludhiana.

Purchase incentives

Ludhiana, Jalandhar, Patiala, Amritsar, and Bhatinda are the five cities causing the most vehicular emissions in the state. These cities will be the focus of the adoption of electric-two wheelers (E2W) through fiscal incentives.

Punjab will offer a purchase incentive of ₹3,000 (~$37)/kWh of battery capacity per vehicle, with a maximum incentive of ₹10,000 (~$125) per vehicle to the first 100,000 registered owners of E2Ws. The same incentive will apply to e-rickshaws also.

E-cart users will be eligible for a purchase incentive of ₹30,000 (~$376) per vehicle for the first 5,000 owners.

A purchase incentive of ₹3,000 (~$37)/kWh of battery capacity will be provided to the first 5,000 owners of e-LCVs (L5N and N1 category vehicles), with a maximum incentive of ₹30,000 per L5N category vehicle, and maximum incentive of ₹50,000 (~$627) per N1 category vehicle.

The applicable incentive of ₹5,000 (~$62)/kWh of battery capacity not exceeding ₹50,000 (~$626.9) per vehicle will be provided for the first 2,500 waste collection vehicles of L5N and N1 categories.

Commercial fleet and delivery companies will be encouraged to promote the adoption of EVs in last-mile delivery services in the target cities in a phased manner.

The Punjab EV policy notes that the state produces 10 million e-cycles annually.

With the extension of the Performance Linked Incentive (PLI) to e-cycles, the state transport department will incentivize the first 10,000 users of both passenger and cargo e-cycles with a maximum sale price of 25% or ₹5,500 (~$69),  and a maximum sale price of 33% or ₹15,000 (~$188.2) per cargo e-cycle, respectively.

The policy also aims to electrify public, shared, and goods transport vehicles, including buses, taxis, light commercial vehicles, and three-wheelers (E3W).

Subsidies for charging points

The state government will provide a capital subsidy, including for the augmentation of upstream electrical infrastructure and installing battery charging/ swapping stations.

It will provide a subsidy of ₹3,000 (~$37) per charging point for the first 8,000 Level 1 EV AC charging points and ₹10,000 (~$125) per charging point for the first 2,000 DC charging points.

As per the policy, all charging and swapping stations will get special tariffs as decided by the Punjab State Electricity Regulatory Commission (PSERC).

The policy also incentivizes solar charging infrastructure under the New and Renewable Sources of Energy (NRSE) policy. Punjab State Power Corporation Limited (PSPCL) will further provide power banking for setting up captive renewable energy facilities in one year, encouraging the use of clean power.

Exemption of EVs with green number plates

Per the notification dated August 2, 2021,  the policy will exempt EVs from paying fees for the issue or renewal of registration certificates and assignment of the new registration mark.

As notified by the state government, tolls on select Punjab highways will be waived for EVs with green number plates. The target cities will get reserved slots for green vehicles in all major public parking spaces and charging infrastructure. The policy will promote the identification of street-pole charging facilities in target cities.

The policy identifies green zones and green transportation corridors under which special green zones will be declared at strategic locations where only EVs would be permitted entry in target cities. Special transport routes will be demarcated as green corridors encouraging EV plying.

PSPCL will be the nodal agency for the deployment of EV charging/ battery swapping infrastructure in the state.

The policy recognizes four use cases for EV charging in the state. They are charging infrastructure on public land, providing unrestricted access for all EV users: semi-public charging stations that will cater to charging infrastructure on lands public in nature but with restricted access; private and captive charging stations that have restricted access for specific individuals, families, or fleets; and battery swapping stations where users can swap of charge batteries of E2Ws and E3Ws.

The district-level implementation committees (DLIC) have been authorized to identify locations across busy routes or highways, public parking zones, bus depots, and terminals to install charging/ swapping stations within two months of the notification of the policy.

Recently, Rajasthan rolled out its EV policy 2022 with a focus on providing financial and non-financial incentives to support EV adoption and manufacturing.

Chhattisgarh also came up with its EV policy aiming to accelerate EV adoption, especially in the two-wheeler, public/shared transport, and goods carrier segments. It has targeted 15% of all vehicle registrations to be battery electric vehicles by 2027.