Madhya Pradesh Electric Vehicle Policy

In a world striving to reduce its carbon footprint and transition to sustainable mobility, Indian states have been racing to frame progressive electric vehicle (EV) policies. Among them, Madhya Pradesh (MP) has emerged as a notable player by launching the Madhya Pradesh Electric Vehicle Policy, aimed at catalysing EV adoption, strengthening local manufacturing, and building eco-friendly infrastructure.

This policy is not just about vehicles — it’s a holistic roadmap that integrates environment-friendly transport, industrial growth, and energy sustainability. Let’s explore how this ambitious initiative is reshaping the green mobility ecosystem in the heart of India.

Background and Vision of MP’s EV Policy

Launched in 2022, the Madhya Pradesh EV Policy reflects the state government’s commitment to reducing dependency on fossil fuels, lowering urban air pollution, and encouraging clean transportation alternatives. With a vision to make MP a hub for EV production and innovation, the policy sets a target of achieving 25% EV adoption by 2026 in new vehicle registrations across selected vehicle segments.

The National Electric Mobility Mission Plan (NEMMP), FAME-II, and India’s pledge to achieve net-zero emissions by 2070 are all in line with this.

Core Objectives of the Policy

The Madhya Pradesh Electric Vehicle Policy establishes an effective strategy:

Promote EV adoption among individuals, fleets, and public transport.
Develop a robust charging infrastructure across the state.
Provide monetary and non-monetary incentives to both producers and consumers.
Encourage EV manufacturing, R&D, and battery production within the state.
Provide employment opportunities in green mobility and clean energy sectors.

Key Incentives for EV Buyers

To make electric vehicles more accessible and affordable, the policy offers a series of incentives to end users, especially in two-wheelers, three-wheelers, and commercial fleets.

1. Purchase Subsidy

EV buyers are eligible for subsidies on the ex-showroom price. For example:

Up to ₹5,000 for electric two-wheelers.
Up to ₹25,000 for electric three-wheelers.
Commercial e-rickshaws and delivery EVs also qualify for additional support.

2. Road Tax & Registration Waiver

Buyers of EVs are exempted from road tax and registration charges, making the total cost of ownership significantly lower than ICE vehicles.

3. Interest Subsidy on Loans

The policy facilitates interest subsidies on loans taken for the purchase of EVs, especially for commercial and rural users.

Charging Infrastructure Development

The lack of sufficient charging infrastructure is one of the major challenges in the adoption of EVs.

EV charging stations should be provided every 3 km in urban areas and every 25 km on highways.
Public charging stations can receive a 25% capital subsidy, or ₹10 lakh.
Fast-track clearances and low electricity tariffs for EV chargers.
Development of battery swapping stations, especially for fleet and e-rickshaw operators.

Manufacturing and Industrial Support

Madhya Pradesh wants to become a hub for the production of EVs and their components by providing incentives to MSMEs and OEMs.

Capital subsidy of up to 25% on fixed capital investments in EV manufacturing units.
Plant establishment is eligible for a stamp duty exemption and refund on land registration.
Subsidies on R&D units, battery assembly, and component manufacturing.
For a period of 5 years, power tariff subsidies and electricity duty exemptions are provided.

This makes MP an attractive location for manufacturers of electric two-wheelers, lithium-ion batteries, controllers, motors, and charging equipment.

Focus on Public and Commercial Transport

To reduce emissions from public transport and delivery services, the policy encourages the electrification of:

City buses and public transit systems (e-buses).
Logistics and delivery fleets, especially in urban areas.
E-rickshaws and shared mobility platforms, with special incentives for drivers.

Additionally, the state will make it easier for current diesel buses to be retrofitted with electric drivetrains in order to promote the switch without replacing them entirely.

Employment and Skill Development

It is anticipated that EV adoption would create thousands of jobs in:

Vehicle manufacturing
Battery recycling and servicing
EV charging station operation
Technical R&D and after-sales services

The policy promotes skilling programs through ITI partnerships and technical training institutes, ensuring a ready workforce for the green energy sector.

Urban Local Body (ULB) Participation

To ensure that the policy is effectively implemented, Urban Local Bodies are empowered to:

Reserve dedicated parking spaces for EVs.
Provide property tax rebates for buildings with EV chargers.
Promote EV fleets for municipal services, like waste collection and civic transportation.

Alignment with National Initiatives

The policy seamlessly integrates with broader national missions:

FAME-II scheme for demand incentives.
PLI schemes for battery manufacturing and auto components.
Startup India and Make in India promote innovation and domestic production.

This multi-layered strategy ensures that MP leverages both state and central benefits for EV growth.

Monitoring and Evaluation

To ensure accountability and real-time progress tracking, the government has set up:

A State EV Cell under the Department of Industrial Policy & Investment Promotion.
Regular policy reviews and stakeholder consultations.
Data-based evaluation of charging infrastructure, vehicle adoption, and job creation.

The Final Thought

The Madhya Pradesh Electric Vehicle Policy is a bold and forward-thinking initiative that not only facilitates the adoption of green mobility but also boosts industrial growth, job creation, and environmental sustainability. By reducing ownership costs, building infrastructure, and supporting local manufacturing, MP is clearly paving the road to an electric future.

At Cretum Advisory, we help startups, manufacturers, and fleet operators navigate EV policies, subsidies, and regulatory procedures. Our services include EV Startup consulting services, policy compliance, scheme application support, and financial and legal advisory. Ready to leverage Madhya Pradesh’s EV incentives?

Frequently Asked Questions (FAQs)

1. What is the Madhya Pradesh Electric Vehicle Policy?

The Madhya Pradesh EV Policy is a state initiative launched in 2022 to promote the adoption, manufacturing, and infrastructure development of electric vehicles. It aims to make EVs more accessible, create jobs, and reduce environmental impact.

2. What types of electric vehicles are eligible for subsidies in MP?

The policy covers electric two-wheelers, three-wheelers, and commercial vehicles like e-rickshaws and e-buses. Subsidies are provided on purchase, registration, and interest on loans.

3. Are there any tax benefits for buying an EV in Madhya Pradesh?

Yes, the policy offers a 100% exemption on road tax and registration fees for eligible EVs. This significantly reduces the overall cost of ownership.

4. What support is available for setting up EV charging stations in MP?

The policy offers up to 25% capital subsidy or ₹10 lakh for setting up public charging stations. Fast-track approvals and reduced power tariffs are also part of the benefits.

5. How does the policy help EV manufacturers and component suppliers?

EV and battery manufacturers are offered capital subsidies, stamp duty exemptions, and electricity duty waivers. This supports local production and supply chain development.

6. Are public transport and shared mobility operators included?

Yes, the policy incentivizes electric buses, e-rickshaws, and fleet operators to transition to clean transport. Retrofits and fleet-level benefits are also included.