EV Policy - Andaman & Nicobar Islands


The primary objective of the A&N Islands EV Policy 2022 is to accelerate adoption of EVs for improvement in the air quality such that they contribute to 30% of the new registrations by 31st December, 2026.

Demand Incentives

Subsidy on Purchase of 4 Wheeler: 

  • A purchase incentive INR 10,000/- per kWh up to a maximum of INR 1,00,000/- per electric four wheeler for the first 720 registered vehicle owners shall be provided to the owner. An early bird incentives INR 12,000/- per kWh up to a maximum of INR 1,20,000/- per vehicle shall be provided to the vehicle owners of the first 70 registered e-Cars/ Hybrid/ Fuel Cell vehicles if the vehicles are purchased before 31st December, 2023. 
  • Registered owner of Electric car (i.e. Electric car eligible for the Purchase Incentive) shall also be eligible for a Scrapping Incentive for scrapping and de-registering old ICE car  registered in the UT. Upto INR 25,000 of incentive shall be reimbursed by the Transport Department to the registered owner of the Electric car, subject to evidence of matching contribution from the dealer or OEM, and confirmation of scrapping and de-registration of  the vehicle by the RTO. 
  • The permit linked to the de registered ICE commercial light vehicle can be surrendered and exchanged for an e- car permit at no additional cost.

Battery recycling subsidy

EV batteries typically need to be replaced once they are degraded to operating at 70 – 80 % of their capacities. EVs are therefore going to outlive the batteries powering them, with a vehicle requiring about two batteries in a 10 year life span. Batteries that have reached their end of life will need to be either re-used or recycled. Not only do EV batteries carry a risk of giving off toxic gases if damaged during disposal, but core materials such as Lithium and Cobalt are finite and very expensive to extract. 

The policy shall encourage the reuse of EV batteries that have reached the end of their life and setting up of recycling businesses in collaboration with battery and EV manufacturers that focus on ‘urban mining’ of rare materials within the battery for re-use by battery manufacturers. 

Every manufacturer, importers re-conditioner, assembler, dealer, recycler, auctioneer, consumer and bulk consumer should strictly comply the provisions made under the Batteries (Management and Handling) Rules 2001 as amended by the Notification S.O. 1002 (E) dated 04th May 2010 for proper handling and disposal of batteries used in the electric vehicle. (ANNEXURE III). 

The Recycling units involved in recycling of EV batteries shall take the necessary consent and clearance from the concerned Department of A & N Administration (ANPCC). Improper disposal of the EV Batteries shall attract fine to the tune of Rs.1,00,000/- per instance and legal proceedings as per the applicable rules for such violations.