Karnataka tweaks EV policy, to offer 15 per cent capital subsidy to investors

The Karnataka Cabinet on Thursday decided to give 15% capital subsidy to investors in the electric vehicle sector after the state came under immense pressure from a few states which offered apparently better sops.

The Cabinet decided to amend its Karnataka Electric Vehicle & Storage Policy, 2017, to improve upon its existing policy. The government will give a 15% capital subsidy on the value of fixed assets over five equal annual payments, Law minister Basavaraj Bommai said, briefing the media after the Cabinet meet.

The sops will apply to plots of up to 50 acres. The government will also give a production linked incentive of 1% of turnover for a period of five years from the first year of commercial operations.

“With these incentives, we hope to attract more investments in the EV sector and strengthen Karnataka’s position as the leading destination for the sector,” Commissioner for Industrial Development Gunjan Krishna told ET.

The trigger for tweaks arose after EV policies of a few other states such as Andhra Pradesh, Telangana, Tamil Nadu, Haryana and Gujarat offered seemingly better deals as their policies are of recent vintage.