The government will create an EV Venture Capital Fund, for financial support to start-ups in the segment. The overall aim is to make Tamil Nadu the preferred destination for EVs and component makers.
The government of Tamil Nadu announced a policy on electric vehicles (EVs) which aims to attract Rs 50,000 crore of investment in the segment, making the state a hub in this regard.
Additionally, it targets the creation of 150,000 jobs.
Motor vehicle registration in TN has risen to a little over 27.7 million, from 321,000 in 1981.
Penetration of EVs remains low.
A dedicated strategy to address the price of EVs, create a public charging infrastructure and to promote investment in EV manufacturing is required, states the policy, issued by Chief Minister K Palaniswami.
A high-level committee is to monitor implementation.
The government will create an EV Venture Capital Fund, for financial support to start-ups in the segment.
The overall aim is to make Tamil Nadu the preferred destination for EVs and component makers.
In an EV Special Manufacturing Package, the government says it will fully reimburse State Goods and Services Tax (SGST) on sale of EVs made, sold and registered within the state, till December 2030.
A capital subsidy of 15 per cent for eligible investments over 10 years will be provided for intermediate products and charging infrastructure, where SGST reimbursement is not applicable, till December 2025.
EV and charging infrastructure manufacturing industries in the state will be provided full exemption on electricity tax till December 2025.
Subsidies were announced for land sale and lease for manufacturing and charging infrastructure, apart from an employment incentive.
The government will develop exclusive EV parks in major automobile manufacturing hubs to create a vendor eco-system.
Sohinder Gill, DG, Society of Manufacturers of Electric Vehicles, said they welcomed the government’s move.
More incentives will be provided for medium, small and micro units.
All auto rickshaws, taxis and app-based transport operators and aggregators in six cities - Chennai, Coimbatore, Trichy, Madurai, Salem and Tirunelveli – will be encouraged to convert to EVs within 10 years.
Electric two-wheelers will get complete road tax exemption till December 2022 and a waiver on registration charge.
Private cars will also get a waiver on registration charge and 50-100 per cent road tax exemption till then.
Waiver of registration tax and other incentives were also announced for other segments.
Around 21,000 buses are operated by state transport undertakings (STUs) in Tamil Nadu.
The STUs are to try to replace five per cent of the buses as EVs every year.
The state will invest in charging stations, with participation of public sector units, the state power distribution entity and private players.
The government will develop schemes with capital subsidy for enabling private operators to set up public charging stations (PCS).
It will also make try to set up grid charging stations in the six cities mentioned earlier.
Charging stations will be set up at 25 km intervals on both sides of national and state highways.
Charging points will be provided in government office parking lots in the six cities.
Public-private partnership models will also be explored.
Rates for supply of electricity to PCS will be determined by the state electricity regulatory commission and not exceed 15 per cent above the average cost of supply.
Supply of renewable energy will be ensured on a preferential basis at EV charging stations.
Recycle and reuse of used batteries and disposal of rejected batteries are also items in the policy.