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Reading: Odisha Unveils EV Policy 2.0: Sets 50% EV Target by 2036, Boosts Charging Infrastructure and Incentives
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Odisha EV Policy
Home » Blog » Odisha Unveils EV Policy 2.0: Sets 50% EV Target by 2036, Boosts Charging Infrastructure and Incentives
Policy

Odisha Unveils EV Policy 2.0: Sets 50% EV Target by 2036, Boosts Charging Infrastructure and Incentives

Sunita
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Sunita
Last updated: 30 June 2025
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Odisha EV Policy 2.0 Aims for 50% EV Registrations by 2036, Enhances Charging Infrastructure and Offers New Incentives for Adoption

Contents
  • From 1% to 50%: Odisha’s EV Growth Story
  • Key Highlights of Odisha EV Policy 2.0:
  • Vision 2036: Odisha’s Electric Leap

In a major push toward green mobility, the Odisha government has announced its updated EV Policy 2.0, setting an ambitious target: 50% of all new vehicle registrations in the state to be electric by 2036. This long-term vision aligns with Odisha’s Vision 2036 and reflects its growing commitment to sustainable transportation.

From 1% to 50%: Odisha’s EV Growth Story

Odisha has witnessed steady progress in electric vehicle adoption, with EV registrations increasing from 1.16% in 2021 to 8.71% by June 2025, according to state transport data. At a high-level meeting co-chaired by senior officials from the Commerce & Transport and Energy Departments, the state outlined its roadmap to further accelerate this momentum.


Key Highlights of Odisha EV Policy 2.0:

1. Charging Infrastructure Expansion:
Over 550 Public Charging Stations (PCS) are currently operational across the state. To enhance coverage, the State Transport Authority (STA) has floated a Request for Proposal (RFP) to install new charging stations at high-priority urban and semi-urban locations.

2. Incentives for Charge Point Operators (CPOs):
To attract private investment, the policy includes budgetary incentives for empanelled CPOs, distributed on a first-come, first-served basis. This is expected to rapidly boost the availability of charging facilities.

3. Dedicated EV Fund:
The state is planning to establish a Dedicated EV Fund, which could be supported through revenue streams from internal combustion engine (ICE) vehicles. This fund will finance EV-related programs and infrastructure.

4. Combating Range Anxiety:
Odisha aims to tackle range anxiety by rapidly deploying charging stations in underserved areas, making EV use more practical for everyday and intercity travel.

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5. Extended Incentives for Buyers:
Buyers of electric two-wheelers, cars, and commercial EVs will benefit from extended and enhanced purchase incentives, helping reduce upfront costs and making EVs more affordable.

6. Comprehensive Ecosystem Strategy:
The policy takes a holistic approach, aiming to stimulate both the supply side (EV   manufacturing, infrastructure) and the demand side (consumer and fleet adoption).

7. Support from PM e-DRIVE Scheme:
Odisha has submitted its recommendations to the central government to align with the PM e-DRIVE Scheme, ensuring that the state’s EV users and businesses benefit from upcoming national subsidies and incentives.


Vision 2036: Odisha’s Electric Leap

With these measures, Odisha aims to become a leader in India’s electric mobility space by 2036, promoting both economic development and environmental sustainability. The EV Policy 2.0 reflects a proactive, forward-looking approach, ensuring that the state’s urban and rural populations alike benefit from clean transportation options.

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What: India’s finance ministry has directed public sector banks, insurers, and financial institutions to reduce operational spending and accelerate adoption of electric vehicles across official fleets. The move is part of a wider austerity push linked to rising global economic uncertainty and fuel-related risks. The Number: The directive impacts major public institutions including State Bank of India, Bank of Baroda, and Life Insurance Corporation of India, covering millions of employees and thousands of operational vehicles nationwide. The Impact: The policy signals a new phase of institutional fleet electrification in India, where EV adoption is now being tied directly to fiscal discipline, fuel import management, and public-sector operational efficiency. The Core News India’s finance ministry has formally instructed state-run financial institutions to implement strict expenditure controls while simultaneously accelerating EV adoption for official transport operations. The directive from the Department of Financial Services asks organisations to replace petrol and diesel vehicles used at head offices and branch operations with electric vehicles “as far as possible.” The order comes amid growing concern over the economic impact of prolonged geopolitical instability in West Asia, which threatens to increase crude oil prices, widen India’s import bill, and pressure the rupee. Alongside the EV transition mandate, the government has also pushed virtual meetings, reduced foreign travel, and tighter administrative spending controls across public-sector institutions. For India’s EV ecosystem, the directive is strategically important because it expands demand visibility beyond state transport undertakings and government departments into the financial sector itself. PSU banks and insurers operate one of the country’s largest distributed office networks, including regional offices, branch fleets, field operations, and administrative mobility services. Even a phased transition could create a sizeable procurement pipeline for electric passenger vehicles, charging infrastructure providers, and fleet management companies. Breaking Down the Update • The Department of Financial Services issued the austerity and EV adoption directive to PSU banks, insurers, and financial institutions. • The government wants petrol and diesel vehicles used in official operations to be progressively replaced by EVs wherever operationally feasible. • The policy push follows Prime Minister Narendra Modi’s appeal for fuel conservation and controlled discretionary spending amid global energy uncertainty. • The directive also mandates greater use of video conferencing to reduce travel-related operational expenditure. • The move could indirectly support domestic EV OEMs, leasing firms, and charging infrastructure operators through institutional procurement demand. • The banking and insurance sector may emerge as a new enterprise fleet electrification category in India’s EV transition roadmap. How PSU banks EV adoption will help Indian EV Market The expansion of PSU banks EV adoption could create a strong institutional demand layer for India’s electric mobility sector. Public sector banks and insurers operate thousands of branch offices across urban, semi-urban, and rural India. Their transition to EV fleets can generate predictable procurement volumes for domestic automakers, especially in the electric sedan, compact SUV, and commercial mobility segments. Beyond vehicle sales, the policy may also accelerate deployment of workplace charging infrastructure at bank headquarters, zonal offices, and regional branches. This can support charger utilisation economics while helping normalise EV infrastructure in tier-2 and tier-3 cities. Another important impact is signalling. When large state-linked financial institutions adopt EVs as operational assets rather than pilot projects, it improves confidence across the broader enterprise mobility market. Private banks, NBFCs, and insurance firms could eventually follow similar fleet transition models to reduce long-term fuel and maintenance costs. PSU banks EV adoption also aligns with India’s larger energy security strategy. Lower petroleum consumption in institutional fleets directly supports efforts to reduce crude import dependence while stabilising operational expenditure during periods of volatile global oil prices. Conclusion & Next Steps The government’s push toward PSU banks EV adoption reflects a broader shift where EV deployment is increasingly being linked with macroeconomic resilience rather than only sustainability targets. Execution, however, will depend on procurement timelines, charging infrastructure readiness, and operational suitability across
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