EV Incentives offered by states

The expansion of EVs in India is being fueled by a mix of national and state-level efforts. The central government has launched the Manufacturing and Adoption of State governments have also adopted the Hybrid and Electric Vehicles (FAME-II) policy, and variety of EV-specific rules. Considering the incentives provided for promoting EVs, policy initiatives can be divided into two categories: both the supply and demand sides.

The several EV incentives offered by various states are: 

Andhra Pradesh

  • 100 per cent reimbursement on stamp duty on the purchase of land for EV production

  • Reimbursement of SGST for companies operating in the EV ecosystem
  • Reimbursement of electricity duty for first 5 years, and provision of dedicated line with special discount for night/nonpeak time usage for testing of EVs

  • Financial assistance - 50 per cent of fixed capital investment in building and common infrastructure (up to INR200 million) for manufacturing centres specific to EVs

Delhi
  • Purchase incentives of 5-10k per Kwh for 2/4W, Interest subvention of 5 per cent on loans, scrappage incentives up to INR7,500 per ICE vehicle
  • 100 per cent grant for charging equipment up to INR6000/unit for first 30,000 units, development of public charging infrastructure at least every 3kms and special electricity tariff for EV charging
  • Waiver of road tax and registration fees for EVs

Bihar
  • Creation of fast charging stations at intervals of 50km on state/national highways, attract on-ground investments of INR25 billion and create direct empowerment opportunities for 10,000 people in the state

  • Special incentive of INR10,000 (USD140) on Lithium-ion battery e-rickshaws, in addition to the end-user subsidy of INR12,000 (USD170). The state has listed a 15 per cent end-user subsidy for all vehicle categories.
  • Incentives for manufacturers - Reimbursement of stamp duty, registration duty, and SGST, as well as other tax benefits


Karnataka
  • Attract investments of INR310 billion and create employment opportunities for 55,000 people on both supply and demand sides
  • State will reimburse 100 per cent of land conversion fees for converting land from agricultural to industrial use for setting up EV/component manufacturing units
  • Tax exemptions on electricity tariffs and the state will provide an investment subsidy for setting up the first 100 charging stations.
  • Interest-free loans on the net SGST for EV manufacturing enterprises

Tamil Nadu
  • Create pool of skilled workers for EV industry through technical institutions available in the state, create new jobs (~150,000) in the EV industry
  • 100 per cent electricity tax exemption for manufacturing industries, 100 per cent stamp duty exemption for transactions related to EV manufacturing
  • 50 per cent land subsidy if the investment is in the southern districts (15 per cent for other regions)

Telengana
  • Policy also has a provision for retro fitment of existing ICE vehicles such as passenger cars, 2Ws and auto rickshaws.
  • Attract investments worth INR212.4 billion (USD3 billion) and create employment for 50,000 people by 2022 through EVs
  • Will also allow private companies to utilize corporate social responsibility (CSR) funds for company buses for employee commute
  • Two years moratorium period for setting up charging/battery swapping stations
Punjab
  • 100 per cent waiver on Motor Vehicle Tax. Additionally, for vehicles manufactured in Punjab, this waiver shall be applicable for a period of 10 years
  • Fleet and delivery companies will be encouraged to achieve 100 per cent transition towards electric in “target cities” in a phased manner. 

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