Assam Electric Vehicle Policy, 2021: Everything You Need to Know

Posted by Written by Naina Bhardwaj Reading Time: 3 minutes

On September 4, 2021, the state government of Assam notified the Electric Vehicle (EV) Policy of Assam, 2021, which will be in effect over a five-year period until 2026. During this period, the policy aims to achieve 25 percent penetration of EVs in the total number of vehicle registrations. The policy also focuses on developing an enabling charging infrastructure to support the faster adoption of EVs across the state.

What are the policy targets under the Electric Vehicle Policy of Assam?

The state government of Assam will support the deployment of the first 200,000 EVs either under commercial use or individual use over the next five years. The segment wise targets are as follows:

  • Two-wheeler (2W) EVs – 100,000 units
  • Three-wheeler (3W) EVs – 75,000 units
  • Four-wheeler (4W) EVs – 25,000 units

The state government aims at converting 100 percent of the public transport bus fleet to electric buses by 2030. This is to accompany another ambitious target – phasing out all fossil fuel based commercial fleet, government vehicles, and logistics vehicles in all Assam cities by 2030.

What demand incentives are available to buyers?

The Assam government will provide the following demand incentives in addition to the  incentives provided by federal government schemes. These state government incentives will be based on battery capacity. The maximum amount of subsidy must not exceed 40 percent of ex-factory price of the EV.

Demand incentives for buyers under Assam Electric Vehicle Policy, 2021

Vehicle segment

Battery size (kwh)

Subsidy offered (INR)

Total subsidy (INR)

Maximum ex-factory price to avail subsidy (INR)

Two-wheeler EV

2 kwh

10000 per kwh

20,000

150,000

Three-wheeler EV

5 kwh

10000 per kwh

50,000

500,000

Four-wheeler EV

15 kwh

10000 per kwh

1,50,000

1,500,000

The Assam EV policy provides a waiver on road tax and registration charges for EVs for next five years. Additionally, the policy also provides a 100 percent waiver on parking charges for EVs till 2026.

The policy also proposes retro fitment incentive at 15 percent up to INR 15,000 for three-seater auto rickshaws.

What are the incentives for charging infrastructure?

The Assam EV policy provides incentives for creating an effective electric vehicle charging ecosystem in the state. Commercial public EV charging stations for 2W, 3W, and 4W will be eligible for 25 percent capital subsidy on equipment/machinery subject to a maximum limit of INR 1 million per station. This incentive will be available to the first 500 commercial public EV charging stations.

Find Business Support
Learn how we can help companies navigate the environment and cleantech industry in Asia

It is further envisaged that petrol pumps too will be allowed to set up charging stations provided they fulfill the prescribed fire and safety norms as may be issued by the competent authorities.

Furthermore, the EV charging stations can claim up to 90 percent exemption from payment of electricity duty during the policy period. The tariff for new third-party owned EV charging infrastructure shall be as per the Assam Electricity Regulatory Commission (AERC) tariff order for utilities.

What are the incentives for manufacturing of EVs and EV components?

In addition to the 30 percent capital investment subsidy available under the North East Industrial Development Scheme (NEIDS), the Assam EV policy prescribes following incentives for units manufacturing EV or their components:  

  • 20 percent of cost of plant and machinery up to INR 1.5 million for micro, small, and medium (MSME) units
  • 10 percent of cost of plant and machinery up to INR 100 million for large production units

What is the recycling policy for batteries and EV?

Under the Assam EV policy, the EV owners can exchange vehicle batteries that have reached their end of life at any charging point or swapping station in return for a compensation amount. The policy disallows disposal of EV batteries in any other manner, including scrappage.

Furthermore, a nodal agency will be appointed to act as an aggregator to purchase EV batteries from the charging points and battery swapping stations. These batteries will be further reused as power banks to store renewable energy.

About Us

India Briefing is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in Delhi and Mumbai. Readers may write to india@dezshira.com for more support on doing business in in India.

We also maintain offices or have alliance partners assisting foreign investors in Indonesia, Singapore, Vietnam, Philippines, Malaysia, Thailand, Italy, Germany, and the United States, in addition to practices in Bangladesh and Russia.