Bhubaneswar, Aug 28 (IANS): In order to promote electric vehicles in the state, the Odisha Cabinet on Friday approved the Electric Vehicle Policy, 2021.

With an objective to achieve adoption of 20 per cent battery-operated electric vehicles in all vehicle registrations by 2025, the Cabinet headed by Chief Minister Naveen Patnaik approved the EV policy, Chief Secretary S.C. Mahapatra said.

The policy will promote the manufacturing of electric vehicles and their components and facilitate research and development (R&D) in the areas relating to EVs and battery, he said.

The state government has decided to extend financial incentives for the manufacturing industries, buyers, along with interest subvention in loans, and waiving of road tax and registration fees during the policy period (five years). It has also decided to give incentives under the Startup Policy.

Under the policy, the government has given 100 per cent exemption in road tax and registration fees on EVs purchased within Odisha. The state will provide 15 per cent subsidy -- a maximum of Rs 5,000 for two-wheelers, Rs 12,000 for three-wheelers, and Rs one lakh for four-wheelers -- on the base price, officials said.

State government employees can avail 100 per cent interest-free loan for purchasing EVs in the state. A subsidy of 10 per cent (maximum limit of Rs 20 lakh per vehicle) will be provided to the buyers for passenger buses registered in the state.

All small and micro EV battery manufacturing units will get capital investment subject to an upper limit of Rs 1 crore. For units run by a SC, ST, PwD, women, technical degree/diploma holder, the upper limit is Rs 1.25 crore.

Additional capital investment subsidy of 5 per cent will be provided if the unit is set up in the industrially backward districts, including the KBK region.

The Cabinet also approved the Odisha Sand Policy, 2021 in order to ensure sustainable mining of sand in the state.