Bihar Government Unveils Comprehensive Electric Vehicle Policy to Drive Sustainable Transport

PATNA – In a landmark move to champion eco-friendly transportation, the Bihar government, in a cabinet meeting led by Chief Minister Nitish Kumar on Tuesday, has given the nod to a comprehensive Electric Vehicle (EV) policy. The policy places a strong emphasis on creating a conducive ecosystem for electric vehicles, with a particular focus on developing a robust network of charging stations across the state.

In a parallel initiative to bolster electric mobility, the state cabinet also greenlit a proposal from the transport department to acquire 400 electric buses under the PM-eBus Sewa. These buses, slated to operate in various districts of Bihar, aim to diminish reliance on conventional petrol and diesel-powered public transport.

The Bihar Electric Vehicle Policy, designed to steer the state towards a sustainable transport paradigm, outlines ambitious goals for the next five years, culminating in 2028. The policy aspires to see 15% of all new vehicles registered in Bihar by 2028 being electric vehicles.

To incentivize the adoption of electric vehicles, the EV policy introduces various measures, including subsidies on Motor Vehicle (MV) Tax of up to 75% and purchase incentives of up to Rs 1.25 lakh for the first 1,000 personal four-wheeler EVs. Additionally, there are similar benefits for the first 10,000 personal two-wheeler EVs, with subsidies on MV Tax up to 75% and purchase incentives up to Rs 10,000.

Chief Minister Nitish Kumar, leading by example, has been utilizing an electric vehicle for his travels in Patna for the past four years, emphasizing the importance of environmental conservation.

Speaking on the broader objectives of the EV policy, Transport Secretary Sanjay Kumar Agarwal said, “The Bihar Electric Motor Vehicle Policy aims to promote an electric vehicle transport system in the state, complemented by accessible EV charging infrastructure. It seeks to enhance environmental quality by mitigating air pollution while fostering startups and investments in the electric mobility sector and its associated support industries.”

In a bid to make electricity more affordable for power charging stations, the policy provides a 30% subsidy on power tariffs for public and semi-public charging stations during the initial three years. “Subsidies are extended to the establishment of electric charging stations in residential apartments, with various government departments setting up public charging stations on government-owned land,” the Transport Secretary said.

The policy also promotes the use of renewable energy for EV charging stations, with approved tariff rates for high tension EV charging stations set at Rs 8/KvA for the fiscal year 2023-24. Further, provisions for incentives for scrapping EVs and their components are outlined in the policy.

It is noteworthy that the draft of the EV policy, crafted in 2022, benefited from contributions by international expert agencies, including WRI India. WRI India CEO Madhav Pai highlighted the Bihar Electric Vehicle Policy during a session themed “Leading E-Bus Transition: Global Experiences and Learnings” at the United Nations Climate Change Conference of the Parties (COP28) in Dubai on Tuesday.