Odisha Government to Increase Electric Two-Wheeler Subsidy to ₹30,000

The Odisha government has decided to increase the subsidy for registration of electric two-wheelers, as per the PTI report. The amount will be raised from the existing ₹20,000 to ₹30,000. The support will be calculated at ₹5,000 per kWh of battery capacity, with the maximum limit set at ₹30,000.

Part of Draft EV Policy-2025

The provision is included in the draft Electric Vehicle Policy-2025, which will be in place for five years once feedback from stakeholders is received. The policy is expected to provide a framework for expanding EV adoption across the state.

Incentives for Other Vehicles

As per the news reports, apart from two-wheelers, the draft policy proposes revised incentives for other categories. Subsidies for light motor vehicles and taxis will be raised from ₹1.5 lakh to ₹2 lakh. Electric buses will be eligible for a subsidy of ₹20 lakh. 

Vehicles above 3.5 tonnes and below 7.5 tonnes will receive ₹5 lakh, while those under 12 tonnes, 18.5 tonnes, 35 tonnes and 55 tonnes will get ₹7 lakh, ₹16 lakh, ₹18 lakh and ₹20 lakh respectively.

Corpus for Research and Development

A dedicated fund of  ₹15 crore has been proposed to support research and development in the electric mobility sector. The policy specifies that incentives will be available only to permanent residents of Odisha. Each beneficiary will be able to claim subsidies once in each vehicle category.

Read more: EVs to Retain 5% GST as New Tax Structure Rolls Out on September 22, 2025!

Previous Policy and Targets

The earlier Odisha Electric Vehicle Policy was launched in September 2021. It had targeted EVs to make up 20% of fresh registrations within 4 years. However, only 9% of new vehicles registered during the period were electric. The new policy has been drafted to address this gap. With this new policy state government aims for electric vehicles (EVs) to account for 50% of new registrations by 2030.

Conclusion

The revised policy outlines higher subsidies and expanded benefits across multiple vehicle categories. It is expected to remain in force till 2030 once implemented.

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