CHENNAI: In tune with the Centre’s renewed push to promote use of green vehicles, the AIADMK government on Monday unveiled an electric vehicle policy with a slew of incentives, including 100% road tax exemption to e-vehicles till December 30, 2022.
The policy note released by chief minister Edappadi K Palaniswami, which declared the state as a unique destination for developing electric mobility ecosystem with its vibrant automotive sector and steady source of power, said the “state will invest in setting up charging stations with the active participation of public sector units including Tangedco and private players.”
“Provision for charging stations will be made in commercial buildings such as hotels, shopping malls and cinema halls,” the note said, adding that domestic power tariff will be applicable for private charging stations set up at homes.
Targeting Rs 50,000 crore in investment and 1.5 lakh new jobs in the sector, the state offers special incentives to manufactures of electric vehicles and allied industries such as manufacturers of components and charging equipment with an investment of Rs 50 crore and employment potential of at least 50 direct jobs.
Reimbursement of 100% of the SGST, capital subsidy, exemption of electricity tax, stamp duty, subsidy on cost of land, employment incentive, and special incentive for MSME sector will also be part of the scheme.
The state will also amend the building and construction laws to ensure that charging infrastructure integrated at the planning stage for all new constructions.
Industries department special secretary V Arun Roy said the policy was not to completely exclude internal combustion engine (ICE) vehicle and move towards e-vehicles. “We want harmonious coexistence of both platforms for a period so that transition to e-vehicle is smooth and without affecting the employment scenario and the investments made in the ICE. We are convinced that after 10 to 15 years, the trend will change from ICE to e-vehicles. We have to be ready,” he said.
The government assures exclusive electric vehicle parks in major auto manufacturing hubs and in areas which have potential to attract the investments. It guarantees the manufacturing units 15% subsidy on the cost of lands if they get lands from SIPCOT, SIDCO or other government agencies, and 50% subsidy if the investment is made in southern districts. Exemption of 100 on electricity tax will be extended till 2025.
Transport secretary J Radhakrishnan said the state transport undertakings that operates 21,000 buses, would strive to replace around 5% as electric vehicles every year. “The policy will enable us to take advantage of various schemes such as Faster Adoption and Manufacturing of Hybrid and Electric Vehicles or FAME II (that comes with an outlay of Rs 10,000 crore to boost electric mobility), and the upcoming German’s KfW funding that would bring in 500 EV buses and 2,283 BS-6 buses in phase I at 203 million euros,” Radhakrishnan said.
The policy note released by chief minister Edappadi K Palaniswami, which declared the state as a unique destination for developing electric mobility ecosystem with its vibrant automotive sector and steady source of power, said the “state will invest in setting up charging stations with the active participation of public sector units including Tangedco and private players.”
“Provision for charging stations will be made in commercial buildings such as hotels, shopping malls and cinema halls,” the note said, adding that domestic power tariff will be applicable for private charging stations set up at homes.
Targeting Rs 50,000 crore in investment and 1.5 lakh new jobs in the sector, the state offers special incentives to manufactures of electric vehicles and allied industries such as manufacturers of components and charging equipment with an investment of Rs 50 crore and employment potential of at least 50 direct jobs.
Reimbursement of 100% of the SGST, capital subsidy, exemption of electricity tax, stamp duty, subsidy on cost of land, employment incentive, and special incentive for MSME sector will also be part of the scheme.
The state will also amend the building and construction laws to ensure that charging infrastructure integrated at the planning stage for all new constructions.
Industries department special secretary V Arun Roy said the policy was not to completely exclude internal combustion engine (ICE) vehicle and move towards e-vehicles. “We want harmonious coexistence of both platforms for a period so that transition to e-vehicle is smooth and without affecting the employment scenario and the investments made in the ICE. We are convinced that after 10 to 15 years, the trend will change from ICE to e-vehicles. We have to be ready,” he said.
The government assures exclusive electric vehicle parks in major auto manufacturing hubs and in areas which have potential to attract the investments. It guarantees the manufacturing units 15% subsidy on the cost of lands if they get lands from SIPCOT, SIDCO or other government agencies, and 50% subsidy if the investment is made in southern districts. Exemption of 100 on electricity tax will be extended till 2025.
Transport secretary J Radhakrishnan said the state transport undertakings that operates 21,000 buses, would strive to replace around 5% as electric vehicles every year. “The policy will enable us to take advantage of various schemes such as Faster Adoption and Manufacturing of Hybrid and Electric Vehicles or FAME II (that comes with an outlay of Rs 10,000 crore to boost electric mobility), and the upcoming German’s KfW funding that would bring in 500 EV buses and 2,283 BS-6 buses in phase I at 203 million euros,” Radhakrishnan said.
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