Bihar Govt Approves New Electric Vehicle Policy, To Offer Incentives Up To Rs 1.25 Lakh, Subsidies For EV Buyers

Bihar has joined other Indian states embracing electric mobility with its newly approved Electric Vehicle Policy. Chief Minister Nitish Kumar leading the state cabinet has announced the approval of the Bihar Electric Policy 2023. This initiative aims to accelerate the transition to electric vehicles while addressing pollution concerns and promoting the adoption of environmentally friendly vehicles. The state government plans that EVs should comprise at least 15 per cent of total vehicle sales over the course of next five years.

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To entice buyers in the state, the Bihar Electric Vehicle Policy is set to provide a range of incentives. The policy suggests subsidies with up to a 75 per cent reduction in Motor Vehicle Tax for electric vehicles. Additionally, the first 1000 electric cars purchased in the state will be eligible for incentives of up to Rs 1.25 lakh each with similar benefits for the initial 10,000 electric two-wheelers. These incentives include a Rs 10,000 discount on the purchase of electric two-wheelers and 75 per cent waiver on Motor Vehicles Tax.

The Bihar Electric Vehicle Policy has been introduced with plans to draw investments into the state for the development of its electric vehicle ecosystem. Additionally, the policy also focuses on development of electric vehicle charging stations that will be powered by renewable energy. The policy also introduces incentives for those scrapping old electric vehicles and EV components, further emphasising its commitment to sustainable practices and technological advancement. Apart from the new EV policy, the Bihar government has authorised the acquisition of 400 electric buses as part of the PM-e Bus Sewa scheme. These electric buses are slated to operate six districts across Bihar that include Patna, Muzaffarpur, Gaya, Bhagalpur, Darbhanga and Purnea.

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Dr. S Siddharth, Principal Secretary to CM Nitish Kumar said, “The main objective of the scheme is to encourage faster adoption of electric and hybrid vehicles by the people by offering incentives on purchase of electric vehicles and also by establishing a necessary charging infrastructure. The scheme will help in addressing the issue of environmental pollution and fuel security.”