State PCS - Uttar Pradesh (UP PCS)

• 07 Jul 2025

New EV Park in Uttar Pradesh

Why in News? 

The Uttar Pradesh government is going to establish a Rs 700 crore Electric Vehicle (EV) park in Kanpur as part of its Kanpur Metropolitan Development Vision 2030.  

• Spread across 500 acres, the ambitious project will be implemented by the Uttar Pradesh State Industrial Development Authority (UPSIDA).

Note: UPSIDA is the primary government agency responsible for industrial and infrastructure development in Uttar Pradesh.

Key Points

• About the Project: 
  • Aim: The proposed EV park will boost the local supply chain, promote indigenous manufacturing under the ‘Make in UP’ and ‘Made in UP’ initiatives, and position Kanpur as a hub of industrial innovation in the global EV landscape. 
  • Strategic Location: The EV park will be set up near Bhimsen in Kanpur, strategically positioned along the Dedicated Freight Corridor (DFC).  
    • This location offers a logistical edge due to its connectivity to key rail and road networks, ensuring seamless transport of raw materials and finished goods. 
  • Integration with UP’s Defence and Industrial Corridors: Kanpur, already a significant node in the UP Defence Industrial Corridor, will benefit from this initiative by strengthening its industrial base.  
    • The park’s manufacturing capabilities will complement the state’s larger economic objectives, which include boosting defense manufacturing, innovation, and regional development. 
    • Kanpur constitutes among the six nodes of the UP Defence Industrial Corridor (UPDIC). The other five nodes are Lucknow, Agra, Aligarh, Chitrakoot and Jhansi. 
  • Public-Private Partnership (PPP) Model: The EV park will be developed under a PPP model, aligning private sector efficiency with public infrastructure support.  
  • Advanced Manufacturing Infrastructure: The park will house state-of-the-art manufacturing units for essential EV components, including: 
    • Electric motors, Lithium-ion cells, and core electronic systems used in electric vehicles. 
  • Dedicated R&D Centre: A core feature of the park will be a dedicated Research and Development (R&D) centre focused on innovation in EV technologies.  
    • This will drive technological advancement at the regional level while contributing to global progress in electric mobility. 
  • Integrated EV Components Cluster: An integrated cluster will be developed within the park to support the manufacturing of EV components.  
    • This ecosystem will empower Small and Medium Enterprises (SMEs), Startups, and local entrepreneurs. 
    • The initiative aims to deepen local participation in the EV value chain and stimulate enterprise-driven innovation. 
  • Employment Generation: The project is expected to generate both direct and indirect employment, driving economic development in the region.  
• About Electric Vehicles: 
  • About:  
    • EVs are vehicles that use one or more electric motors for propulsion, instead of traditional internal combustion engines (ICEs) that burn gasoline or diesel. 
    • Though the concept of electric vehicles has been around for a long time, it has drawn a considerable amount of interest in the past decade amid a rising carbon footprint and other environmental impacts of fuel-based vehicles. 
  • Types of Electric Vehicles: 
    • Battery Electric Vehicles (BEVs): Solely rely on battery power for propulsion and produce zero tailpipe emissions. 
    • Plug-in Hybrid Electric Vehicles (PHEVs): Combine an electric motor with a gasoline engine. They can be charged externally and run on battery power for a limited range, then switch to the gasoline engine for longer journeys. 
    • Hybrid Electric Vehicles (HEVs): Use both an electric motor and a gasoline engine, but the battery cannot be charged directly by plugging in. 
      • The battery is charged by the gasoline engine or through regenerative braking. 

EV Policies in India 

• 2010: India incentivizes EVs through a Rs 95-crore scheme by the Ministry of New and Renewable Energy (MNRE), offering up to 20% incentives on ex-factory prices. Withdrawn in March 2012. 
• 2013: Launch of 'National Electric Mobility Mission Plan (NEMMP) 2020' to boost EV adoption, address energy security, and reduce vehicular pollution. Largely remained unimplemented. 
• 2015: Union Budget announces FAME scheme with a Rs 75 crore outlay to incentivize clean-fuel technology cars, targeting 7 million EVs by 2020. 
• 2017: The Indian Transport Ministry aims for 100% electric cars by 2030. The plan was scaled down to 30% after industry concerns. 
• 2019: Union Cabinet approves Rs 10,000-crore FAME-II scheme to accelerate EV adoption with upfront purchase incentives and charging infrastructure. 
• 2023: The 36th GST Council Meeting decided to reduce the GST rate on electric vehicles from 12% to 5% and chargers or charge stations from 18% to 5% to boost the electric vehicle market. 
• 2025: The Center has issued detailed guidelines for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) to boost domestic EV production.