EV Push: This State Will Charge 0% Tax For Electric Cars, Zero Registration Fees!

It will also offer 100% interest-free loans to its own employees to buy EVs.

Odisha state government will waive off motor vehicles tax and registration fees for those who have purchased battery-operated or electric vehicles (EVs).

In order to avail the benefits, the purchase will have to be made within December 31, 2025.

The exemptions come under the provisions of the Odisha Electric Vehicle Policy, 2021.



The policy is intended to incentivise quicker adoption of EVs.

It aims to achieve a minimum of 20% registrations of battery-operated vehicles by 2025.

The incentives will also go a long way towards bringing down the costs of the EVs and making them more affordable.

It also wants the production of such vehicles and their components to be done locally.

More Incentives

The state govt is planning to reward further incentives to not only the buyer but also the manufacturers of EVs, their batteries and charging stations.

Among those will be financial incentives starting from Rs 5,000 to Rs 4 lakh to EV buyers for different categories of vehicles until 2025.

It will also offer 100% interest-free loans to its own employees to buy EVs.

Apart from that, the government departments and agencies will promote EVs for official use.


The Odisha EV policy further includes a 15% extension on subsidy on two-wheelers, three-wheelers and four-wheelers with maximum amount of Rs 5,000; Rs 12,000 and Rs 100,000 respectively.

The total subsidy to the EV buyers is expected to cost Rs 190 crore in the next four years given the current pace of registration.

The finance department has been asked to make a budgetary provision of approximately Rs 47.5 crore per annum to provide the subsidy to EV buyers.

Charging Stations

In an effort to build robust infrastructure for EVs, seven charging stations will be installed in Bhubaneswar soon.

These will be located in mall areas, parking lots, hotels, residential complexes, workplaces and highways.

EV parking fees in the municipal areas have also been proposed to be subsidised.

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