Electric Vehicle Subsidy Policy in Himachal Pradesh

As a step towards clean and green mobility, the Himachal Pradesh government has announced a first-of-its-kind electric vehicle subsidy scheme. The initiative aims to encourage private fleet operators to switch to electric vehicles. With the various incentives and tax benefits offered by the state government, HP will become the first state in the country to offer such lucrative subsidies for the adoption of electric vehicles.

The electric vehicle subsidy scheme will be valid for five years. The policy is expected to create a significant shift towards sustainable and eco-friendly transportation in the state, thereby reducing carbon emissions and boosting the local economy. Also, the state government has set a target to transform Himachal Pradesh into a ‘Green Energy State’ by 2026.

Continue reading to learn more about the EV subsidy policy in Himachal Pradesh.

Incentives on Purchasing EVs

As per the EV subsidy policies drafted in 2021, the scheme offers-

• A subsidy of up to Rs. 9000 will be offered on the purchase of electric two-wheelers. The scrappage incentive will be Rs. 3500.
• H.P. government offers a subsidy of up to Rs. 25,000 on the purchase of electric three-wheelers (such as e-carts, e-rickshaws, etc.) in the state. The scrappage incentive offered by the state will be Rs. 7500.
• The subsidy benefit of Rs. 1,00,000 (with a scrappage incentive of Rs. 10,000) will be provided on the purchase of electric four-wheelers, excluding commercial vehicles.
• The maximum subsidy incentive of Rs. 1,20,000 (with a scrappage incentive of Rs. 10,000) will be permissible on the purchase of electric commercial four-wheelers (Cargo).

New EV Subsidy Policy- 2023

Introduced by the present chief minister of Himachal Pradesh, Mr. Sukhvinder Singh Sukhu, the updated electric vehicle subsidy policy offers:

• The state government will provide a 15% subsidy up to Rs. 50 lakh to buy an electric bus.
• The subsidy of Rs. 10 lakh will be permissible on the purchase of electrical taxis.
• The subsidy of Rs. 50 lakh is sanctioned on the purchase of electric trucks instead of the ones that run on diesel.
• The scheme will benefit 20,000 girls studying at government schools in the state with a maximum subsidy incentive of Rs. 25,000 on the purchase of electric two-wheelers (e-scooters).  
• Registration fees for electric vehicles are free in the state.

Tax/fee Waivers on Purchasing and Operating EVs

• Following Himachal Pradesh Transport Department notification, the EVs are exempted from paying road tax for the duration of the subsidy policy.
• Electric Vehicles purchased and registered in Himachal Pradesh will be exempted from paying toll taxes on state highways during the scheme’s validity. 
• Also, Green Tax and Registration fees for EVs in the state will be exempted, whereas the annual Permit fee for Electric Commercial Vehicles registered in H.P. will be waived.

How to apply for an EV Subsidy in Himachal Pradesh?

Currently, the Himachal Pradesh government is working on implementing the EV subsidy policy in the state. The online portal to apply for EV subsidy in Himachal Pradesh will be available soon on the official transportation website.

Check Electric Vehicle Subsidy for other states