Ladakh introduces electric vehicle policy focused on carbon neutrality

One of the most scenic and naturally beautiful places in the country, the Union Territory (UT) of Ladakh, has unveiled a specific policy for electric vehicles. Ladakh’s “Electric Vehicles and Allied Infrastructure Policy 2022”, which was announced on August 17, 2022, will remain in effect for the next five years, i.e. until August 16, 2027.

UT administration will implement the EV policy through program administration and other means such as demand-side incentives for end users and building a network of EV charging stations.

The objective of Ladakh’s EV policy, as the opening statement says, “to promote sustainable mobility in Ladakh by reviving the sale and use of EVs” is to promote innovation, research and development of skills in EV technology. In addition, it also aims to enable the rapid adoption of electric vehicles in all the latest commercial and domestic vehicle registrations, as well as the promotion of electric mobility in community transport systems and government vehicle fleets.

In addition, the policy exempts all electric vehicles from paying road tax. Ladakh, located at the western end of the Himalayas, has been attracting many tourists for the past few years. The influx of tourists has more than doubled and a significant amount of travel in the region is done in fossil fuel vehicles. According to estimates, the tourism sector contributes about half of Ladakh’s Gross Domestic Product (GDP).

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The UT administration officially announced the specific policy for electric vehicles within two years of unveiling its Vision-2050 statement, with a strong focus on carbon neutrality. Key objectives of the electric vehicle policy include: minimal carbon emissions, promoting clean energy, developing green and feasible community transport systems, and all-weather roads and connectivity.

The population of Ladakh is expected to double by 2050. While the cities of Leh and Kargil are expected to experience continued urbanization and develop into major economic centers in the future, the focus remains on promoting green tourism and sustainable through electric mobility.

Providing incentives to promote the use of electric vehicles will reduce current levels of heavy reliance on fossil fuel powered vehicles, which are used for transportation in the high altitude region.

On the purchase of electric two, three and four wheelers, the Ladakh EV policy provides a capital subsidy of 10%, while the capital subsidy on commercial vehicles is 25%. In an effort to promote wider adoption of electric vehicles in the region, the policy provides demand incentives for buyers in the form of a reduced initial purchase price to be reimbursed to the electric vehicle dealer by UT . As per the policy, in case an EV is purchased from a car dealership, based in another state or UT at 100% ex-showroom price, but is registered and used in Ladakh, the administration will reimburse the individual beneficiary and not the concessionaire. .

UT’s EV policy also provides incentives for the installation of charging facilities. The price of electricity consumed to charge electric vehicles will be set at domestic rates and will also allow for the establishment of common public charging facilities in the parking areas of commercial, institutional and residential buildings. Likewise, it also allows for the placement of public EV charging stations at gas pumps, subject to charging station area and infrastructure qualifying fire and safety rating standards.

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In accordance with the policy, for the first 15 EV charging stations, a capital subsidy of 25% will be granted to eligible public commercial EV charging stations for two-wheelers, cars and buses on equipment/machinery or 500 INR 000 (whichever is lower). ) by post.

In the future, Ladakh may offer incentives for the use of electric vehicles for commercial operations from the requirement of license fees for the operation of a transport vehicle, in addition to the exemption or the net Goods and Services Tax reduction for UT for the rental and ownership of a fleet of electric vehicles. In addition, once the electric vehicle policy is fully operational, UT may also expand incentives for battery exchange center operations.

Ladakh, like other states that have rolled out EV policies to drive demand for e-mobility, will strive to mandate the provision of charging infrastructure in all new builds, whether it is whether guesthouses, hotels, housing companies, shopping malls, markets, offices, shops. complex and others. In addition, it is also planned that 10% of the declared parking spaces will be reserved for electric vehicles and less parking fees for green vehicles.

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