Joining the bandwagon of states’ coming out with an electric vehicle policy, Tamil Nadu government on Monday unveiled its policy that outlined a host of support measures including 100 per cent exemption from vehicle tax, investment subsidy and other incentives.
Launched by the Chief Minister Edappadi K Palaniswami, the Tamil Nadu Electric Policy 2019 is aimed at encouraging the manufacture and sale of electric vehicles (EVs) to curb pollution levels across the state.
Under the new policy, all-electric vehicles include two and three-wheelers, cars, buses and commercial vehicles will get vehicle tax exemption till the end of 2022, according to a statement.
The policy will offer special incentives to the EVs and their components manufacturers. The project should have a minimum investment of over ₹50 crore, creating employment opportunity for 50 people to avail this offer.
There will be 100 per cent refund of SGST (state GST) for EVs made and sold in Tamil Nadu It will be effective until 2030. Subsidy of 15 per cent and 20 per cent will be offered for investments in EV manufacturing and battery production, respectively till 2025.
Also, for an electric vehicle or parts production investments in the state’s industrial parks will attract 20 per cent subsidies on the land cost. For projects started in southern districts, the investors will get 50 per cent subsidies until 2022.
For purchase of land to establish EV and EV part units, there will be a 100 per cent exemption from stamp duty.
The EV or parts production units in Tamil Nadu will also get 100 per cent exemption from electricity tax.
The state government will encourage projects that will set up charging infrastructure. Also, state power utility TANGEDCO will work on establishing charging infrastructure on its own or through public-private partnerships.
The government will also affect changes in the building and construction laws to ensure the incorporation of charging infrastructure in the planning stage itself for all new constructions and residential apartments in the cities.