Bhubaneswar: The Odisha Commerce and Transport Department has extended the validity of the Odisha Electric Vehicle Policy, 2021 till December 31, 2026.

In a statement, the department said the extension reaffirms the state government’s commitment to promoting electric mobility and accelerating the transition towards sustainable transportation.

Under the policy, the state government provides 100 per cent exemption from road tax and registration fees, along with purchase subsidies for electric vehicles.

The incentives include:

Two-wheelers: Subsidy of 15 per cent of the vehicle cost, capped at ₹5,000, or ₹5,000 per kWh, subject to a maximum subsidy of ₹20,000.

Three-wheelers: Subsidy of 15 per cent of the vehicle cost, capped at ₹10,000, or a flat subsidy of ₹30,000.

Four-wheelers: Subsidy of 15 per cent of the vehicle cost, capped at ₹50,000, or ₹10,000 per kWh, subject to a maximum subsidy of ₹1.5 lakh.

Buses and goods vehicles: Buses are eligible for a subsidy of 10 per cent of the vehicle cost, ranging from ₹4 lakh to ₹20 lakh depending on specifications, while goods carriers are eligible for a ₹30,000 subsidy for the initial units.

The Odisha government had also made electric vehicles mandatory for official departmental use from June 1, 2026. Procurement limits were fixed at up to ₹30 lakh for ministers and senior members of the judiciary, ₹25 lakh for senior secretaries, and ₹20 lakh for district collectors and superintendents of police.

However, the interest-free Electric Vehicle Advance of up to ₹2 lakh previously available to state government employees was discontinued through a Finance Department memorandum issued on April 28, 2026.