Madhya Pradesh's Draft EV Policy Proposes Subsidy for Four-Wheelers
ECONOMY & POLICY

Madhya Pradesh's Draft EV Policy Proposes Subsidy for Four-Wheelers

Madhya Pradesh has unveiled its draft Electric Vehicle (EV) Policy for 2025, offering a maximum subsidy of Rs 50,000 per four-wheeler electric vehicle as part of a broader push for EV adoption across the state. The policy, valid for five years, will cover both battery-powered and fuel-cell electric vehicles.

Key targets include making Bhopal, Indore, Jabalpur, Gwalior, and Ujjain model EV cities. The policy aims for 40% of new two-wheeler registrations to be electric, 100% of commercial fleets, 70% of e-three-wheeler registrations, 15% of e-four-wheeler registrations, and 40% of new electric buses. It also mandates converting all state government vehicles to electric.

Key features:

  • Regulatory exemptions: Electric commercial public transport vehicles and electric three-wheelers will have specific operating zone restrictions. Corporates can own and operate EVs for feeder transport, and retrofitting vehicles with electric powertrains will be allowed.
  • Subsidies: Various categories of electric vehicles, including cycles, two-wheelers, three-wheelers, four-wheelers, and light commercial vehicles, will be eligible for subsidies based on their ex-factory prices and battery capacities:
  • Electric cycles: Subsidy of up to Rs 5,000 for vehicles with an ex-factory price under Rs 40,000.
  • Electric two-wheelers: Subsidy of up to Rs 10,000 or Rs 5,000/kWh, whichever is lower, for vehicles under Rs 150,000.
  • Electric three-wheelers: Subsidy of up to Rs 20,000 or Rs 5,000/kWh, whichever is lower, for vehicles under Rs 500,000.
  • Electric four-wheelers: Subsidy of up to Rs 50,000 or Rs 2,500/kWh, whichever is lower, for vehicles under Rs 2.5 million.
  • Light commercial vehicles: Subsidy of up to Rs 50,000 or Rs 5,000/kWh, whichever is lower, for up to 5,000 vehicles.
  • E-Buses: Incentive of up to 10% of ex-factory price or Rs 1 million, whichever is lower, for up to 100 e-buses.
  • Charging infrastructure: Incentives will support the development of charging points, including rebates for residential buildings and commercial complexes. Agricultural land used for setting up charging stations under women’s ownership will also receive land conversion charge exemptions.
  • Incentives for manufacturing: The government will offer fixed capital investment subsidies for manufacturing units, as well as interest rebates on loans for EV-related industries.
  • Fixed capital investment: Up to 25% of FCI, with a cap of Rs 1.5 million for micro industries and Rs 200 million for mega industries.
  • Pilot projects: Pilot programs for EV trucks and tractors will provide subsidies to participants, encouraging innovation and testing in these segments. Subsidies will be up to Rs 10,000 or Rs 250,000, depending on the vehicle.
  • The policy also includes measures for parking incentives, toll tax exemptions, and funding sourced from pollution cess and levies on luxury vehicles. These initiatives aim to foster a sustainable EV ecosystem while significantly boosting local manufacturing and job creation.
  • (Mercom)

    Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

    Madhya Pradesh has unveiled its draft Electric Vehicle (EV) Policy for 2025, offering a maximum subsidy of Rs 50,000 per four-wheeler electric vehicle as part of a broader push for EV adoption across the state. The policy, valid for five years, will cover both battery-powered and fuel-cell electric vehicles. Key targets include making Bhopal, Indore, Jabalpur, Gwalior, and Ujjain model EV cities. The policy aims for 40% of new two-wheeler registrations to be electric, 100% of commercial fleets, 70% of e-three-wheeler registrations, 15% of e-four-wheeler registrations, and 40% of new electric buses. It also mandates converting all state government vehicles to electric. Key features: Regulatory exemptions: Electric commercial public transport vehicles and electric three-wheelers will have specific operating zone restrictions. Corporates can own and operate EVs for feeder transport, and retrofitting vehicles with electric powertrains will be allowed. Subsidies: Various categories of electric vehicles, including cycles, two-wheelers, three-wheelers, four-wheelers, and light commercial vehicles, will be eligible for subsidies based on their ex-factory prices and battery capacities: Electric cycles: Subsidy of up to Rs 5,000 for vehicles with an ex-factory price under Rs 40,000. Electric two-wheelers: Subsidy of up to Rs 10,000 or Rs 5,000/kWh, whichever is lower, for vehicles under Rs 150,000. Electric three-wheelers: Subsidy of up to Rs 20,000 or Rs 5,000/kWh, whichever is lower, for vehicles under Rs 500,000. Electric four-wheelers: Subsidy of up to Rs 50,000 or Rs 2,500/kWh, whichever is lower, for vehicles under Rs 2.5 million. Light commercial vehicles: Subsidy of up to Rs 50,000 or Rs 5,000/kWh, whichever is lower, for up to 5,000 vehicles. E-Buses: Incentive of up to 10% of ex-factory price or Rs 1 million, whichever is lower, for up to 100 e-buses. Charging infrastructure: Incentives will support the development of charging points, including rebates for residential buildings and commercial complexes. Agricultural land used for setting up charging stations under women’s ownership will also receive land conversion charge exemptions. Incentives for manufacturing: The government will offer fixed capital investment subsidies for manufacturing units, as well as interest rebates on loans for EV-related industries. Fixed capital investment: Up to 25% of FCI, with a cap of Rs 1.5 million for micro industries and Rs 200 million for mega industries. Pilot projects: Pilot programs for EV trucks and tractors will provide subsidies to participants, encouraging innovation and testing in these segments. Subsidies will be up to Rs 10,000 or Rs 250,000, depending on the vehicle. The policy also includes measures for parking incentives, toll tax exemptions, and funding sourced from pollution cess and levies on luxury vehicles. These initiatives aim to foster a sustainable EV ecosystem while significantly boosting local manufacturing and job creation. (Mercom)

    Next Story
    Real Estate

    Vitizen Hotels Signs Deal at Manyata Tech Park

    Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

    Next Story
    Infrastructure Transport

    CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

    Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

    Next Story
    Infrastructure Transport

    Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

    Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..

    Advertisement

    Subscribe to Our Newsletter

    Get daily newsletters around different themes from Construction world.

    STAY CONNECTED

    Advertisement

    Advertisement

    Advertisement

    Talk to us?