EV Subsidy in Odisha 2026: Policy Extended, Road Tax & How to Apply

Odisha's EV policy pays a subsidy on almost every vehicle type and waives road tax on all of them, and the state has kept it running through a series of short extensions. The Odisha Electric Vehicle Policy 2021 came into force on 1 September 2021 and was originally due to end on 31 December 2025. Since then, the state has extended it a quarter at a time, and an October 2026 notification moved the end date to 31 December 2026.

The benefits cover almost every vehicle type. Electric two-wheelers get ₹5,000 per kWh of battery capacity, up to ₹20,000. Electric three-wheelers get a flat ₹30,000. Electric cars get ₹10,000 per kWh, up to ₹1.5 lakh, which puts Odisha level with Maharashtra for the largest car subsidy among the states in this series. On top of that, every EV is fully exempt from road tax and registration fees, and EV loans carry a 5 per cent interest subvention.

You claim the subsidy yourself, online, after the vehicle is registered, and the money is paid into your bank account. Two-wheeler buyers also get the central PM E-DRIVE incentive at the dealership. The scheme is meant for permanent residents of Odisha, and the state has tightened address checks after finding buyers from neighbouring states using it. By December 2025, more than 2.19 lakh EVs were on Odisha's roads and over ₹340 crore had been paid out across categories.

A replacement policy has been in draft since September 2025 but is not yet approved. This guide covers what applies now, what you save on popular EVs, who qualifies and how to apply. For a comparison with other states, see our guide to state-wise EV subsidies in India.

Odisha EV Policy 2021 at a glance

EV subsidy amounts in Odisha by vehicle type

The April 2023 amendment linked the two-wheeler and car subsidies to battery capacity, replacing the earlier flat caps.

Since most electric cars on sale have batteries well above 15 kWh, nearly every model reaches the ₹1.5 lakh cap.

Road tax and registration fee exemption in Odisha

Every battery electric vehicle registered in Odisha during the policy period is fully exempt from motor vehicle tax and registration fees. The exemption is applied at registration, so there is nothing to claim.

The saving is substantial because Odisha's standard one-time road tax is relatively high. Private cars and two-wheelers pay 6 per cent up to ₹5 lakh, 8 per cent between ₹5 lakh and ₹10 lakh, and 10 per cent above ₹10 lakh. An EV pays none of it.

Other benefits

• Interest subvention. EV loans for personal vehicles, buses and goods carriers carry a 5 per cent interest subvention. Ask your lender and the RTO how it is applied to your loan.
• Government employees. State government employees can get interest-free loans to buy an EV.

• Scrappage support for goods carriers. Owners who scrap an old petrol or diesel goods carrier and buy an electric one get additional support.

   

Popular EVs and how much you save in Odisha

These are rough estimates for popular variants. Road tax savings use Odisha's rates above, applied to approximate ex-showroom bands; vehicle prices themselves are left out because they change too often to stay accurate.

Electric two-wheelers

Because Odisha pays by battery size, a larger battery earns a larger subsidy, up to the ₹20,000 cap at 4 kWh.

Electric cars

These totals exclude the interest subvention on a loan, which adds to the savings if you finance the car.

Who is eligible for EV subsidy in Odisha

Buyer conditions

• Permanent residents. The subsidy is meant for permanent residents of Odisha. Since August 2025, the state has been verifying permanent addresses, after finding misuse by buyers from neighbouring states.
• Registration in Odisha. The vehicle must be registered with an Odisha RTO.
• Matching names. The name on the bank account must match the name on the registration certificate exactly. Any mismatch leads to automatic rejection.

• Valid bank details. The account type and branch details must be correct, since the account is verified before payment.

   

Vehicle conditions

• Purchase date. The vehicle must be bought on or after 1 September 2021 and registered while the policy is valid, currently up to 31 December 2026.
• Two-wheeler standards. Electric two-wheelers must have a top speed of at least 40 km/h, an acceleration of at least 0.65 m/s², consumption of no more than 7 kWh per 100 km and a warranty of at least three years, including the battery. Low-speed scooters do not qualify.

• Advanced batteries. The vehicle must use an advanced battery, not a lead-acid one, and the model must be registered with the Transport Department.

   

How to apply for EV subsidy in Odisha

Yes, the Odisha subsidy claim can be completed fully online. You apply after the vehicle is registered, and most of the vehicle details are filled in automatically. The purchase and registration still go through the dealer.

1. Complete the PM E-DRIVE e-voucher. For a two-wheeler, finish the Aadhaar face authentication at the dealership. The central ₹5,000 is deducted from the price.
2. Register the vehicle in Odisha. Check that the road tax and registration fee show as zero.
3. Open the transport department's online services. On odishatransport.gov.in, choose the option to apply for the electric vehicle subsidy.
4. Enter your registration number. The vehicle's details are pulled from the national Vahan registration database.
5. Enter your bank details. Use an account in the same name as the RC. The account is verified before payment.
6. Receive the payment. The RTO where the vehicle is registered releases the subsidy, which reaches your account by DBT. You get an SMS when it is paid.

Apply soon after registration. The policy's validity has been extended only a few months at a time, so leaving the claim late adds risk.

Recent changes to the Odisha EV policy

What the draft Odisha EV Policy 2025 proposes

The draft replacement, released in September 2025, would run until 31 December 2030 and target a 50 per cent EV share of new registrations. It proposes ₹10,000 per kWh, up to ₹1.5 lakh, for private cars, a flat ₹2 lakh for cars in commercial use, ₹20,000 for e-rickshaws and ₹30,000 for larger three-wheelers. It would also restrict benefits to permanent residents, bar ownership transfer for five years and allow one claim per vehicle segment. The draft has not been approved, so these terms may change.

EV subsidy in other states

Odisha's two-wheeler subsidy is generous, but Delhi pays more, up to ₹30,000 in the first year of its new policy, as our guide to EV subsidy in Delhi explains. For other states:

• EV subsidy in Maharashtra
• EV subsidy in Gujarat

• EV subsidy in Uttar Pradesh

   

You can also compare EV subsidies across states in one place.