From 15% to 30%: Odisha EV Policy Expands Subsidies for Charging, and Battery Swaps

Odisha, after being unable to achieve the target set under the Odisha Electric Policy, 2021 (published in September 2021), has now seen the Odisha Commerce and Transport Department issue the Odisha Electric Vehicle Policy, 2025.

The Odisha government introduced the latest policy despite the state receiving the government's alluring incentives and witnessing only a 9% increase in EV adoption during this period. Aligned with national efforts, the Odisha Electric Vehicle Policy, 2021, aimed to accelerate EV adoption through targeted incentives and infrastructure development, yet the adoption rate reached only 8.8% up to June 2025. Thereby, leaving room for the state to meet its strategic targets.

To address these gaps, the Odisha Electric Vehicle Policy, 2025, introduces a revised and expanded framework that not only strengthens current adoption mechanisms but also incorporates high-emission vehicle segments and aligns with the central government's decarbonization roadmap.

The policy has now sought suggestions for inclusion or omission in the draft policy by the undersigned within thirty days from the date of publication in the Odisha Gazette, either in person, by post, or via e-mail at [email protected]

Goal & Vision

The Odisha Government, through its Odisha Vision 2036 & 2047, targets achieving 70% electric and alternative fuel vehicle sales by 2036 and 80% by 2047. By prioritizing electric vehicles, Odisha aims to reduce air pollution, create green jobs, and boost its economy through innovative technologies and sustainable practices.

With a vision for a cleaner and more efficient transportation network, the policy is set to remain valid until 31st December 2030, providing a structured approach for achieving the state’s long-term goals.

The Odisha government also incentivizes commercial vehicles, which can retrofit their existing ICE vehicles and convert them into EVs. Retrofitted vehicles that comply with Automotive Research Association of India (ARAI) standards shall be eligible for the following incentives up to 31st December 2030. 

Research & Technology Fund: The revised policy added a dedicated corpus of Research & Technology Fund, of 15 cr., to be created under the "CM EV R&D Grant" initiative to fund the R&D activities, which shall be open to proposals for EV
R&D. 

Subsidy Support

Odisha's latest policy also expanded subsidies and incentives to accelerate EV adoption. While the 2021 policy offered a 15% subsidy on EV purchases, the new framework raises support for key segments, including two-wheelers, three-wheelers, and battery swapping infrastructure, with subsidies now reaching up to 30% in certain cases.

Under the revised Odisha Electric Vehicle Policy 2025, the subsidy for two-wheelers is 15% of the cost, up to a maximum of Rs 5,000.

Similarly, the cap on 15% subsidy for three-wheelers is Rs 10,000, and for four-wheelers, it is kept at Rs 50,000. By broadening coverage to commercial vehicles, retrofits, and charging infrastructure, the policy aligns with Odisha’s Vision 2036 and 2047 targets, aiming for 70–80% EV adoption, while promoting research, green jobs, and sustainable mobility.