The burgeoning population of over four million vehicles crowding the roads of Assam presents a daunting challenge to mobility. This influx is compounded by a substantial number of vehicles streaming in from neighboring states and other parts of the country, exacerbating road accidents and air pollution. To address these issues, the Assam government has launched numerous initiatives aimed at enhancing road conditions. These efforts encompass upgrading and widening the National Highway to facilitate smoother mobility, diminish air pollution, and combat climate change.
In this endeavor, the promotion of Electric Vehicles (EVs) or e-mobility emerges as a progressive stride. The adoption of EVs for road transport aligns with a spectrum of objectives, including the amelioration of air quality, reduction of noise pollution, bolstering energy security, and, when coupled with a low carbon power generation mix, curbing greenhouse gas emissions.
The Government of India has propelled this movement forward with its Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) schemes. These schemes incentivize and, in certain sectors, mandate the integration of electric vehicles, with an ambitious target of achieving 30% EV penetration by 2030.
Despite these efforts, the penetration of electric vehicles in Assam remains modest at the conclusion of FAME Phase-I. A tailored strategy is imperative to address the pricing of EVs, enhance public charging infrastructure, and stimulate investments in both EV manufacturing and charging infrastructure. To encourage widespread adoption of EVs in the state, the Government of Assam aims to establish a robust infrastructure for electric vehicles, encompassing reliable power availability, a widespread network of charging points, and favorable power tariffs.
VISION:
The objective is to foster and expedite the uptake of electric mobility as a means of advancing clean transportation, thereby ensuring environmental sustainability and cultivating an ecosystem for manufacturing EV components within Assam. This policy is designed to catalyze the swift adoption of Battery Electric Vehicles (BEVs) and facilitate enhancements in air quality throughout Assam, with a particular focus on major urban centers.
OBJECTIVES:
The primary goal is to significantly enhance Assam’s air quality by reducing emissions from the transportation sector. This policy aims to achieve this objective by promoting the rapid adoption of Battery Electric Vehicles (BEVs), targeting for them to represent 25% of all new vehicle registrations by 2026.
Key initiatives include:
- Establishing a robust infrastructure for electric vehicles, ensuring sufficient power supply and a widespread network of charging points, accompanied by favorable power tariffs.
- Developing a skilled workforce for the EV industry by leveraging technical institutions within the state, thereby generating new employment opportunities in the EV sector.
- Creating an enabling environment for both industry and research institutions to concentrate on pioneering research in EV technologies, positioning Assam as the preferred destination for electric vehicle and component manufacturing.
STRATEGY:
- Encouraging the adoption of EV technology: Enhancing the feasibility of EVs through the provision of fiscal and non-fiscal incentives.
- Facilitating the creation of dedicated charging infrastructure for EVs: Subsidizing investments to support the establishment of charging stations.
- Fostering research and development (R&D) and innovation: Encouraging the setup of Research & Development Centers and Centers of Excellence throughout the state to drive advancements in EV technology.
POLICY TITLE:
- The Policy will be called “Electric Vehicle Policy of Assam, 2021”
COMMENCEMENT AND DURATION:
The policy will be effective from the date of Notification and will remain applicable for a duration of 5 years or until the declaration of a new or revised policy, whichever occurs earlier.
TARGETS AND ROADMAP:
The State aims to facilitate and endorse the deployment of the first two lakh electric vehicles, whether for individual or commercial use, within the policy’s 5-year timeframe. The targeted distribution across segments is detailed as follows:
- 2 Wheelers: 100,000 Units
- 3 Wheelers: 75,000 Units
- 4 Wheelers: 25,000 Units
The objective is to transition 100% of the public transport bus fleet to electric buses (Battery Electric Vehicles) by 2030.
All government vehicles are slated to be converted to electric vehicles by 2030. Starting from 2025, the purchase of only electric vehicles will be permitted.
The plan entails phasing out all fossil fuel-based commercial fleets and logistics vehicles in all cities by 2030.
DEFINITIONS:
Electric Vehicle (EV): An electric vehicle, or EV, utilizes energy stored in rechargeable batteries, which are replenished through standard household electricity. EVs encompass electric scooters/motorcycles, electric three-wheelers, electric cars, vans, buses, and other electric passenger vehicles.
EV Components: Key components of EVs comprise the motor controller, electric engine (motor), regenerative braking system, drive system, and associated parts/assemblies.
EV Battery: An electric vehicle battery (EVB) or traction battery powers the propulsion of battery electric vehicles (BEVs). These batteries are typically rechargeable secondary batteries. EV batteries do not include lead-acid batteries.
EV Battery Components: The battery pack comprises numerous discrete cells connected in series and parallel to meet the total voltage and current requirements of the pack. A battery is composed of smaller stacks called modules, which are integrated into a single pack. Modules also incorporate cooling mechanisms, temperature monitors, other devices, and a Battery Management System (BMS).
EV Charging Station & Equipment: An electric vehicle charging station is an infrastructure that provides electric energy for recharging electric vehicles. Charging station equipment includes charging posts, charging cabinets, and other relevant components.
INCENTIVES FOR EARLY ADOPTION OF ELECTRIC VEHICLES
The Demand Incentive provided by the State will supplement any subsidies offered by the Central Government through its promotional schemes and policies.
Incentives for all categories of electric vehicles will be determined based on the electric vehicle battery capacity, measured in kilowatt-hours (KWh), as outlined below:
The recipient may only avail of a subsidy from one State Government scheme. However, there are no restrictions on receiving subsidies or incentives from any Government of India scheme.
The maximum subsidy amount will not exceed 40% of the ex-factory price of the vehicle.
Electric vehicles in the 2, 3, and 4-wheeler categories will be exempt from registration charges and road tax for a duration of 5 years.
Parking charges for Electric Vehicles will be completely waived for a period of 5 years.
A retrofitment incentive of 15%, up to Rs. 15,000, will be provided for 3-seater auto-rickshaws.
INCENTIVES FOR CHARGING INFRASTRUCTURE:
The State Government will encourage the development of charging infrastructure with various capacities and technologies, promoting diverse business models such as privately-owned, DISCOM-owned, and investor-owned charging and battery swapping stations.
Commercial public EV charging stations for 2-wheelers, 3-wheelers, and 4-wheelers will be eligible for a 25% capital subsidy on equipment/machinery, up to a maximum limit of Rs. 10 lakhs per station. This incentive will be applicable to the first 500 commercial public EV charging stations.
Subsidies for charging stations will only be granted to developers, individuals, or entities that have not received similar subsidies under any State Government policy or scheme, unless explicitly stated otherwise in this policy.
All EV charging stations must comply with the charging guidelines and standards set by the Ministry of Power, Government of India, and the Power (E) Department, Government of Assam.
Petrol pumps will have the opportunity to establish charging stations provided they meet the prescribed fire and safety standards issued by competent authorities.
The State Government will waive 90% of the electricity duty for EV charging stations, with entrepreneurs being responsible for paying the remaining 10% during the policy period.
The tariff for new third-party-owned EV charging infrastructure will adhere to the tariff order set by the Assam Electricity Regulatory Commission (AERC) for utilities.
INCENTIVES FOR MANUFACTURING OF EV AND THEIR COMPONENTS:
All regulations outlined in the Industrial & Investment Policy of Assam, 2019, or any subsequent Industrial Policies introduced by the State Government, will be applicable to enterprises seeking to establish manufacturing facilities in the EV sector.
Enterprises intending to establish manufacturing facilities in the EV sector will also be subject to all provisions of the North East Industrial Development Scheme (NEIDS), 2017, or any subsequent industrial policies for the North Eastern Region announced by the Central Government.
In addition to the 30% Capital Investment Subsidy available under NEIDS, 2017, or any subsequent policy from the Government of India/State Government, units engaged in the manufacturing of EVs or their components will qualify for the following additional incentives:
- 20% of the cost of Plant & Machinery, up to Rs. 15 lakh for Micro Units
- 20% of the cost of Plant & Machinery, up to Rs. 50 lakh for Small Units
- 20% of the cost of Plant & Machinery, up to Rs. 1 crore for Medium Units
- 10% of the cost of Plant & Machinery, up to Rs. 10 crore for Large Units
Additionally, units involved in the manufacturing of EVs or their components will be eligible for an additional Interest Subsidy of 2% on Working Capital Loans, in addition to the existing 3% Interest Subsidy on Working Capital Loans available under NEIDS, 2017, or any subsequent policy from the Government of India/State Government.
RECYCLING ECOSYSTEM – BATTERY AND EVs:
EV batteries typically require replacement once their capacity degrades to 70-80%. Thus, EVs are anticipated to outlast the batteries powering them, necessitating battery changes twice within a 10-year lifespan.
End-of-life batteries must undergo either reuse or recycling, as insufficient reuse or recycling poses significant environmental risks. Damaged EV batteries carry the risk of emitting toxic gases during disposal, while materials like lithium and cobalt are finite and costly to extract.
Encouraging the reuse of EV batteries at the end of their lifespan and promoting the establishment of recycling enterprises in collaboration with battery and EV manufacturers will focus on ‘Urban Mining’ of rare materials within batteries for reuse by battery manufacturers.
EV owners can return end-of-life vehicle batteries to any charging point or swapping station and receive a remunerative price for the battery. Disposal of EV batteries in any other manner, such as as scrap, will not be permitted.
A designated agency will be appointed to aggregate the purchase of EV batteries with at least 70% of their rated capacity. These batteries will be acquired from charging points and battery swapping stations and repurposed as ‘power banks’ to store renewable energy. Batteries procured in this manner will be auctioned to renewable energy generators within and outside Assam. The nodal agency will publish the purchase price of end-of-life batteries monthly, based on auction prices achieved and a margin for itself and the charging points and battery swapping stations.
RESEARCH & DEVELOPMENT:
The State Government will collaborate with leading Technical Institutes to establish Centers of Excellence dedicated to conducting market-oriented research on Battery Technologies, Battery Management, Motors, and Controllers.
Additionally, the Government will provide financial assistance to startups engaged in research and innovation within the EV and Battery Technologies domain.
COMMITTEE FOR APPROVAL
A State Level Committee (SLC) will be established comprising the following members to oversee the implementation of the Policy and formulate necessary procedures and modalities as needed:
Terms of Reference of the State Level Committee:
i. Oversee the implementation of policy provisions within specified timeframes.
ii. Ensure timely issuance of relevant Orders/Government Notifications and necessary amendments.
iii. Facilitate inter-departmental coordination on matters pertaining to this Policy.
iv. Approve Fiscal Incentives outlined in the Policy.
v. Evaluate and analyze best practices adopted by different states/countries.
vi. The Committee may enlist experts in the field as members.
INTERPRETATION:
The State Government’s decision regarding the interpretation of any clause of the policy shall be conclusive and binding.
RIGHTS OF THE STATE GOVERNMENT:
The State Government retains the authority to revise any provision(s), including amendments or withdrawal of incentives/subsidies, as deemed necessary to promote the EV ecosystem and in the interest of the general populace of the State, under the provisions of this Policy.
Furthermore, the State Government holds the prerogative to review matters concerning the sanctioning/dispensation of subsidies/incentives, with its decision being ultimate and obligatory.
The State Government also maintains the right to formulate/amend requisite rules for the implementation of this policy as deemed necessary.