Odisha Prolongs EV Subsidies and Tax Waivers to December 31, 2026

05 Oct 2026, 07:31 by Vinay Kakkad · KalingaTV

Bhubaneswar: Buyers and manufacturers of electric vehicles in Odisha will continue to receive financial incentives, tax exemptions, and subsidies through December 31, 2026, following a formal extension of the state’s flagship clean mobility framework.

The state’s Commerce and Transport Department released an official order over the weekend prolonging the Odisha Electric Vehicle Policy, 2021, invoking the administrative powers granted under paragraph 11.5 of the original document.

The move keeps in place a full waiver on road tax and vehicle registration fees, alongside a wide bracket of purchase support designed to curtail tailpipe emissions and accelerate the shift toward sustainable transportation.

Originally rolled out in 2021, the initiative targets both consumer adoption and industrial expansion. Beyond end-user purchase subsidies, the framework provides financial backing for local manufacturing of electric vehicles and their components, vehicle scrapping incentives, and interest subventions on commercial loans.

Under the prevailing subsidy structure, retail incentives vary widely by vehicle category:

Two-wheelers: Buyers receive 15 percent of the total vehicle cost, subject to a limit of Rs 5,000, or Rs 5,000 per kilowatt-hour (kWh), with an overall subsidy ceiling capped at Rs 20,000.

Three-wheelers: Financial assistance is set at 15 percent of vehicle value capped at Rs 10,000, or a flat payout of Rs 30,000.

Four-wheelers: Individual car buyers qualify for 15 percent of the vehicle price up to Rs 50,000, or Rs 10,000 per kWh, capped at a maximum of Rs 1.5 lakh.

Commercial and mass transit: Passenger buses are eligible for a 10 percent purchase incentive, ranging between Rs 4 lakh and Rs 20 lakh depending on technical specifications, while initial commercial goods carriers receive a flat subsidy of Rs 30,000.

The state administration emphasized that the decision to keep the policy active aligns directly with its broader environmental commitments to lower carbon emissions and build out a regional manufacturing ecosystem.