Historically, mobility and fossil fuels have been closely intertwined, with electric vehicles finding success only in a few niche markets. However, over the past decade, a combination of factors has created an opportunity for electric mobility to enter the mass market. The government of Madhya Pradesh has actively focused on improving public transport through various state and central schemes such as the Dedicated Urban Transport Fund (DUTF), Atal Mission for Rejuvenation and Urban Transformation (AMRUT), and other foreign-aided projects. Continuous efforts are being made to expand the public transport infrastructure across the cities of Madhya Pradesh.
The Urban Development and Housing Department of Madhya Pradesh has prepared the “Madhya Pradesh Electric Vehicle (EV) Policy 2019” to achieve the objectives of the Electric Vehicle Initiative (EVI). This initiative aims to accelerate the deployment of EVs in the state. The government is committed to the EVI, recognizing that adopting electric vehicles for road transport can lead to numerous benefits, including improved air quality, reduced noise pollution, enhanced energy security, and lower greenhouse gas emissions, particularly when combined with low-carbon power generation.
Despite ongoing efforts to expand the EVI network in cities, the current air quality situation in the state underscores the pivotal role that EVI can play in controlling noise and air pollution. However, the penetration of pure electric vehicles in India remains quite low, with about 0.1% for cars, 0.2% for two-wheelers, and virtually none for commercial vehicles. This is largely due to several critical hurdles: low investment in EV manufacturing capacity, high upfront purchase prices, lack of initiative in promoting the program, absence of products comparable to internal combustion engine (ICE) vehicles, and a lack of policies discouraging the use of ICE vehicles, especially two-wheelers.
The main objective of the EVI is to significantly improve air quality by reducing emissions from the transport sector. The policy aims to drive the rapid adoption of electric vehicles so that they account for 25% of all new vehicle registrations by 2026. Currently, local bodies in the state lack the initiative required to improve air quality, but this policy will play a crucial role in addressing this issue. Additionally, there is a pressing need to foster behavioral change among citizens and build capacity among stakeholders to ensure the successful implementation of the EVI. This policy will serve as a guiding document for local bodies, setting the context, priorities, and direction for the effective implementation of the EVI across Madhya Pradesh.
Advance Battery: “Advance Battery” refers to new-generation batteries such as Lithium Polymer, Lithium Iron Phosphate, Lithium Cobalt Oxide, Lithium Titanate, Lithium Nickel Manganese Cobalt, Lithium Manganese Oxide, Metal Hydride, Zinc Air, Sodium Air, Nickel Zinc, Lithium Air, and other similar chemistries that are either in use or under development.
Authority: Any department, agency, or official nominated by the Madhya Pradesh Urban Development and Housing Department (MPUDHD) for enforcing or implementing the provisions of the Madhya Pradesh Electric Vehicle (EV) Policy 2019.
AC Chargers: Batteries require DC power for charging. Public chargers (also known as off-board chargers) are typically DC chargers, allowing direct charging of the batteries/vehicles. For public outlets providing AC supply to EVs, the chargers are on-board, supplied by the vehicle manufacturer.
Battery Electric Vehicle (BEV): BEVs are automobiles equipped solely with an electric motor and advanced batteries with energy density comparable to or greater than Lithium Ion batteries. This policy does not cover hybrid electric vehicles with fossil fuel-based engines.
Charging: This encompasses all functions necessary to condition standard voltage and frequency AC supply current to a regulated voltage/current level, ensuring proper charging of the EV traction battery and/or supplying energy to the EV traction battery bus, thereby enabling controlled operation of on-board electrical equipment.
Charging/Battery Swapping Equipment: This equipment is exclusively used for charging or swapping the battery inside a BEV. It can be installed at existing fuel stations or dedicated charging/battery swapping stations. The policy does not include incentives for manufacturing any supporting equipment, such as transformers or junction boxes, that are not exclusive to BEV charging/swapping equipment.
Charger Classification: Instead of categorizing chargers as “slow chargers” or “fast chargers,” it is more appropriate to classify them based on power rating. The same charger can function as a slow charger for one type of vehicle and a fast charger for another. For example, a 2.5KW charger is a slow charger for a 4-wheeler but a fast charger for a 2-wheeler.
Dedicated Off-Board Charger: An off-board charger designed specifically for a certain type of EV, which may include control charging functions and/or communication capabilities.
Electric Vehicle (EV): EVs are automobiles powered by an electric motor, driven by batteries, ultra-capacitors, or fuel cells.
Electric Mobility Ecosystem: This policy addresses various components and end products of the electric mobility ecosystem. This includes electric vehicles and components such as Lithium-Ion batteries (or other advanced batteries with comparable energy/power densities), supercapacitors, fuel cell systems, EV charging equipment, hydrogen generation, storage and refueling equipment, battery swapping equipment, EV motors & controllers, other EV powertrain components, battery management systems, EV electronics, and electric harnesses integral to the functioning of an EV.
EV Charger: An EV charger, also known as Electric Vehicle Supply Equipment (EVSE), supplies electric energy for recharging electric vehicles. As the proliferation of EVs depends on accessible charging infrastructure, it is essential to adopt common specifications and standards for the infrastructure to ensure seamless scalability across all vehicle categories.
Fuel Cell Electric Vehicle (FCEV): FCEVs are vehicles that use a fuel cell in combination with a battery or supercapacitor to power the on-board electric motor. The fuel cell generates electricity to power the motor using hydrogen as fuel.
MPUDHD: Madhya Pradesh Urban Development and Housing Department.
MPIPP: Madhya Pradesh Industrial Promotion Policy 2010, as applicable with amendments.
On-Board Charger: A charger mounted on the vehicle, designed to operate exclusively on the vehicle.
Off-Board Charger: A charger connected to the premises wiring of the AC supply network (mains) and designed to operate entirely off the vehicle, delivering direct current electrical power to the vehicle.
Private Charger: Home private chargers typically use a 230V/15A single-phase plug, delivering up to about 2.5KW of power. Consequently, vehicles can only be charged at this rate, with billing included in home metering. This will continue until a policy for differentiating home users’ EV usage is established. However, inclusion of Residual Current Devices (RCD) should be ensured, with IEC 60309 Industrial connectors used at both ends. Existing Indian safety guidelines should be followed.
Public Charger: For charging outside home premises, electric power needs to be billed, and payment collected. Charges may vary depending on the grid’s state (power-surplus or power-deficit). Power utilities may also manage the power drawn by these chargers from time to time.
Ultra-Capacitors: Also known as super-capacitors or electrochemical capacitors, ultra-capacitors are devices for storing electrical energy.
BACKGROUND
Madhya Pradesh is the second-largest state in India, covering approximately 9.5% of the country’s area (308,000 sq.km) and home to 6% (72.5 million) of its total population (Census 2011). The state has seen a 25% decadal growth in urban population according to the 2011 Census, compared to data from the 2001 Census. The transportation needs of the state are served by 4,709 km of National Highways, 10,859 km of State Highways, 19,574 km of Major District Roads, and 24,209 km of Rural Roads. The road network in Madhya Pradesh has seen traffic increase at an average rate of 12.91% from 2000 to 2010. The state’s transport policy predicts a 10% annual increase in the number of registered commercial vehicles. The distribution of all transport modes out of a total of 6 million registered vehicles in the state is shown in Figure 1.
Between 2011 and 2014 alone, over 2.3 million new vehicles were registered in Madhya Pradesh, with 90% comprising two-wheelers and four-wheelers for private transit. This translates to nearly 2,000 new two-wheelers and four-wheelers registered daily, contributing significantly to vehicular emissions and worsening air pollution.
Special Purpose Vehicles (SPVs) have been established in 20 cities to implement a cluster-based bus system. These SPVs, comprising authorities from various Urban Local Bodies (ULBs), facilitate, regulate, oversee, and promote intra-city and inter-city public bus transport. The project includes three major components: (i) Bus Procurement & Operation, (ii) Intelligent Transport Management System (ITMS), and (iii) Bus Terminal & Bus Stops Development. Recently, under the AMRUT scheme, 438 buses have been put into operation, connecting small cities and villages to larger cities in Madhya Pradesh. This system aims to provide citizens with access to services such as healthcare, education, and employment available in larger cities.
The Madhya Pradesh Electric Vehicle (EV) Policy 2019, valid for five years from the date of notification, recognizes the need for a new approach to promote EV adoption in the state. The policy aims to address the key hurdles to EV adoption and will be accompanied by a communication plan to raise awareness about the benefits of electric vehicles and the policy’s key elements.
This policy applies exclusively to Battery Electric Vehicles (BEVs), as defined in Annexure -1 of the FAME India scheme. Mild Hybrid, Strong Hybrid, and Plug-in Hybrid Electric Vehicles are not targeted by this policy. FAME India refers to the Scheme for Faster Adoption and Manufacturing of Hybrid & Electric Vehicles in India, notified on March 13, 2015, by the Government of India, including any subsequent amendments.
Internal combustion engines (ICEs) have historically enabled faster and more efficient transportation of people and goods. Advances in ICE efficiency, oil drilling, and manufacturing innovations have significantly contributed to the adoption and growth of automobiles, fueling economic growth.
The Government of Madhya Pradesh understands that the transformation towards electric vehicles must begin in cities over the next decade, as charging infrastructure is developed to support EV adoption. Initial adoption is expected in public transportation, stage carriers, and commercial taxi & scooter fleet providers, where the total cost of ownership between EVs and ICE vehicles is comparable. As cost parity between EVs and ICE vehicles is achieved and charging infrastructure proliferates in cities and on highways, mass adoption of EVs could potentially occur by the end of the next decade.
The Government of India has supported EVs through incentives under the FAME Policy. The Ministry of New and Renewable Energy has also supported R&D and demonstration projects on various aspects of hydrogen energy, including its production, storage, and use as a fuel for generating mechanical, thermal, or electrical energy. Accordingly, the Government of Madhya Pradesh has identified Electric Mobility as a robust growth driver for the future. The state aims to be a frontrunner in building sustainable transportation infrastructure by promoting an Electric Mobility Ecosystem in Madhya Pradesh.
SCOPE OF POLICY
This policy applies exclusively to electric vehicles (EVs) and the components essential to their manufacturing and operation, such as EV charging and Battery Electric Vehicle (BEV) battery swapping infrastructure. Firms benefiting from incentives under this policy will not be eligible for incentives under the industrial policy of the Government of Madhya Pradesh (GoMP). Separate guidelines will be issued for the implementation of this policy.
Private Transport: To achieve the stated goals and objectives, the policy aims to significantly replace the currently registered internal combustion engine (ICE) vehicles with various electric vehicles throughout Madhya Pradesh.
Public Transport: This policy seeks to enhance (or replace) existing intracity bus fleets with electric buses to reduce energy consumption and harmful emissions in the public transport sector, thereby improving local and global air quality. In cities where electric bus operations are not feasible due to low population, e-rickshaws and e-auto rickshaws will be promoted as modes of public transport. The integration of electric buses into the current public transport bus fleets across the state will be encouraged.
Charging Infrastructure: The policy will provide guidelines for developing adequate charging infrastructure for various EVs, catering to both public and private transit needs. It will also promote the use of renewable energy in charging infrastructure.
Online Portal: An online portal will be introduced to provide information regarding EVs, application processes for EV-related incentives, and details about charging infrastructure.
Employment Opportunities: The policy aims to create new employment opportunities by promoting EV manufacturing, developing charging infrastructure, and encouraging the use of EVs in both public and private transport sectors.
OBJECTIVES
The primary objective of the Madhya Pradesh Electric Vehicle (EV) Policy 2019 is to promote sustainable electric mobility and significantly improve air quality by reducing emissions from the transport sector. This policy aims to achieve 25% of all new public transport vehicle registrations being electric vehicles by 2026.
To facilitate the rapid adoption of electric vehicles in Madhya Pradesh, the policy will ensure the development of a safe, reliable, accessible, and affordable charging infrastructure ecosystem while promoting the use of renewable energy in charging infrastructure.
Additionally, this policy will implement measures to support job creation in various sectors related to EVs, including driving, selling, financing, servicing, charging, and manufacturing.
NODAL ORGANISATION
The Madhya Pradesh Urban Development & Housing Department (UDHD), Government of Madhya Pradesh (GoMP), will be the nodal department responsible for implementing the Madhya Pradesh Electric Vehicle (EV) Policy 2019.
The Government of Madhya Pradesh will establish a high-level committee comprising stakeholders from all relevant departments. The government will issue new directives to these departments to include any necessary support for promoting electric vehicles in their operational policies under the ease of doing business initiative.
ELECTRIC VEHICLE TYPE INCENTIVE STRUCTURE
TWO WHEELERS
Regulatory Incentive:
(a) The first 15000 electric two-wheelers or total electric two-wheelers in 5 years whichever is less, will be charged 1% (One Percent) motor vehicle tax.
(b) Vehicle registration fees will be exempted for 22,500 electric two-wheelers or total electric two-wheelers in 5 years, whichever is less.
(ii) Parking Cost: All electric two-wheelers will be provided a 100% waiver on parking charges at any Urban Local Body run parking facility for an initial period of 5 years.
PARAMETERS
Incentives will be available for two-wheelers that meet the FAME India criteria or have specifications approved by ARAI, CIRT, ICAT, VRDI, or any other equivalent government agency, or by the UDHD.
All incentives shall apply only to vehicles whose maximum power output does not exceed 250 watts. Additionally, the incentives will be applicable to vehicles that have an “Advanced Battery” as defined by the FAME framework of the Government of India.
SHARED E-RICKSHAWS (SR)
A Shared E-Rickshaw (SR) is a small, battery-operated three-wheeler vehicle with a seating capacity of four passengers, excluding the driver. Due to their size, speed, and battery capacity, they are generally useful for short journeys and complement existing public transit options.
The number of Shared E-Rickshaws (SR) in Madhya Pradesh has grown rapidly, providing a valuable means of last-mile connectivity. This policy aims to support the use of shared e-rickshaws that are safe and compliant with regulations, as well as to encourage the replacement of e-rickshaws in addition to the FAME demand incentive.
INCENTIVES
Shared E-Rickshaws (SR) will be granted express route permissions on a first-come, first-served basis. These permissions will be provided exclusively by the respective authority, and any e-rickshaw must operate with these permissions, regardless of whether the vehicle was purchased with the incentives outlined in this policy. Purchasers will be given a choice among available routes, defined by the respective authority. These permits will authorize the purchaser to operate on the specified routes, complementing existing public transit (if available). The number of SRs on each route will be regulated to avoid over-saturation and ensure viable earning opportunities for the operators. New routes will be periodically added by the authority to accommodate all Shared E-Rickshaws (SR) and to provide optimal last-mile connectivity for public transit commuters.
Routes will be finalized by the authority, and the necessary notifications will be issued by the transport department. Routes may be changed in the future based on public demand and movement patterns. It may become mandatory to install GPS and monitoring systems in the vehicles for proper regulation and monitoring.
Regulatory Incentive:
The first 5000 Shared E-Rickshaws, or the total number of Shared E-Rickshaws within 5 years (whichever is less), will be charged a motor vehicle tax of 1%
Vehicle registration fees will be exempted for 7500 Shared E-Rickshaws or total vShared E-Rickshaws in 5 years, whichever is less.
If a permit is required for the operation of electric Shared E-Rickshaws (SR), the first 5000 Shared E-Rickshaws, or the total number of Shared E-Rickshaws within 5 years (whichever is less), will be exempt from this requirement by the transport department.
All Shared E-Rickshaws (SR) will receive a 100% waiver on parking charges at any Urban Local Body-run parking facility for an initial period of 5 years.
ELECTRIC AUTO RICKSHAWS
Passenger three-wheelers, also known as ‘Electric Auto-Rickshaws (EARs)’ or ‘Autos,’ are a crucial part of the public transport infrastructure in Madhya Pradesh. They provide last-mile connectivity and access to areas underserved by public transport. The Madhya Pradesh Electric Vehicle (EV) Policy 2019 aims to incentivize the purchase and use of new electric auto-rickshaws (‘e-autos’) instead of their ICE equivalents and promote the conversion of existing CNG autos to e-autos. The following incentives will be provided by the GoMP in addition to the FAME demand incentive:
INCENTIVES
The UDHD will recommend that the transport department phase out the registration of new ICE vehicles entirely.
The first 5000 Electric Auto-Rickshaws, or the total number within 5 years (whichever is less), will be charged a motor vehicle tax of only 1%.
Vehicle registration fees will be waived for 7500 Electric Auto-Rickshaws, or the total number within 5 years (whichever is less). If a permit is required for the operation of Electric Auto-Rickshaws, the first 5000 Electric Auto-Rickshaws, or the total number within 5 years (whichever is less), will be exempt from this requirement by the transport department.
Parking Cost:
All Electric Auto-Rickshaws will receive a 100% rebate on parking costs at any Urban Local Body (ULB) run parking facility for an initial period of 5 years.
ELECTRIC GOODS CARRIERS (3 WHEELER)
Electric three-wheeler goods carriers are useful for low-capacity, short-haul deliveries in congested areas of the city. This policy recognizes their importance and seeks to incentivize the electrification of this fleet. Specific measures aimed at supporting this segment of vehicles are:
The first 2000 Electric Three-Wheeler Goods Carriers, or the total number within 5 years (whichever is less), will be charged a motor vehicle tax of only 1%.
Vehicle registration fees will be waived for 3000 Electric Three-Wheeler Goods Carriers, or the total number within 5 years (whichever is less).
If a permit is required for the operation of Electric Three-Wheeler Goods Carriers, the first 2000 Electric Three-Wheeler Goods Carriers, or the total number within 5 years (whichever is less), will be exempt from this requirement by the transport department.
Parking Cost:
All Electric Three-Wheeler Goods Carriers will receive a 100% waiver on parking charges at any Urban Local Body (ULB) run parking facility for an initial period of 5 years.
ELECTRIC CAR
While the majority of the population in India relies on two-wheelers as their main mode of transportation, the use of cars is steadily increasing year by year. This trend is further fueled by the growing popularity of ride-hailing services in major cities. Through this policy, the state aims to promote electric cars as a feasible alternative for individuals and car-sharing service providers, aiming to reduce the demand for and usage of traditional ICE cars.
(a) The first 6000 electric cars, or the total number within 5 years (whichever is less), will be subject to a motor vehicle tax of only 1%.
(b) Vehicle registration fees will be waived for 9000 electric cars, or the total number within 5 years (whichever is less).
Parking Cost:
All electric cars will receive a 100% waiver on parking charges at any Urban Local Body (ULB) run parking facility for an initial period of 5 years.
BUSES
Electric buses play a significant role in enhancing a city’s overall environment by offering a viable alternative to private vehicles, thus reducing the number of vehicles on the road and subsequent tailpipe emissions. Buses also promote socio-economic equity by providing access to opportunities like jobs, education, healthcare, and recreation for individuals from all walks of life.
(ii) Through this policy, the UDHD will encourage city Public Transport Special Purpose Vehicles (SPVs) to replace 50% of their respective fleets with electric buses by 2026. For cities lacking a functioning public transit system involving buses, all electric buses must be procured by 2030. This acquisition should align with the standards/guidelines set by the Service Level Benchmark for Urban Transport by MOHUA, which stipulates one bus per 1000 citizens.
(iii) The operation of these buses will be conducted under the auspices of city Public Transport SPVs on both existing and new routes within city limits. Routes will be finalized by UDHD, with the transport department issuing necessary notifications.
(iv) Bus operators wishing to decommission their existing diesel-powered buses and replace them with electric buses will receive monetary aid through the Dedicated Urban Transport Fund (DUTF) as determined by UDHD.
(v) All buses (Electric/ICE) governed by SPVs will be granted priority timings (departure and arrival) at bus stands/depots and allocated specific bays/priority spots.
INTER-CITY BUSES
Inter-city transportation in Madhya Pradesh has experienced significant growth in recent decades, propelled by the expanding road network. This growth is expected to continue at unprecedented levels in the coming years. Private operators have seized the opportunity to successfully operate inter-city services, leading to the flourishing of public transport across the state.
(ii) To leverage this growth, electric buses can be deployed on well-established routes connecting major cities such as Indore, Bhopal, Jabalpur, Gwalior, and Ujjain. These cities have extensive transport networks among themselves and facilitate significant citizen exchange. With advancements in battery technology, particularly the use of safer and faster-charging Lithium-ion batteries and battery swapping technology, long-distance travel has become more feasible and efficient.
(iii) Public Transport Special Purpose Vehicles (SPVs) from major cities will be encouraged to operate inter-city e-bus services among themselves through a Public-Private Partnership model, similar to existing arrangements. Furthermore, private operators can be incentivized to transition from ICE buses to e-buses over the next decade.
(iv) All buses (Electric/ICE) operated by SPVs will be granted priority timings for departure and arrival at bus stands/depots, and specific bays/priority spots will be allocated to them.
INCENTIVES
(i) The first 1500 electric buses, or the total number within 5 years (whichever is less), will be subject to a motor vehicle tax of only 1%.
(ii) Vehicle registration fees will be waived for 2250 electric buses, or the total number within 5 years (whichever is less).
(iii) If a permit is required for the operation of Electric Buses, the first 1500 Electric Buses, or the total number within 5 years (whichever is less), will be exempt from this requirement by the transport department.
OTHER VEHICLES
Motor Vehicle tax, registration fees and ULB parking fee will be waived for all other electric vehicles that are eligible for FAME India demand incentives. This waiver will apply for the period of this policy i.e. 2019 – 2023.