ReutersKarnataka will set up a technical committee to define and certify electric vehicle (EV) components to help investors claim incentives and concessions provided under the amended Electric Vehicle & Storage Policy, 2017.
The committee will define and certify EV components eligible for the sops. The move will help the government identify and promote genuine investments in the EV sector, an official said.
The Cabinet had, on May 27, cleared two incentives in place of old ones to align the sops with investor expectations and accelerate the adoption of EV updates in the state.
The revised policy will give 15% capital subsidy on the value of fixed assets (VFA) over five annual equal payments. The offer will apply to units operating out of plots of up to 50 acres.
The subsidy will apply to EV assembly, manufacturing, component manufacturing, battery pack module manufacturing, EV charging infrastructure equipment manufacturing and a few other EV production related units.
The revised policy also provides for a production linked incentive (PLI) of 1% on the turnover for a period of five years starting from the first year of commercial operations.
The government has set a cap of 50% of the value of fixed assets for EV industries to get the incentive. In the event incentives claimed by a unit were more than half the worth of its fixed assets, then the Finance department will vet such cases. The policy also makes it clear that the total sops for a unit cannot cross 100% of the value of its fixed assets.
With the revised policy, the government hopes to gain an edge over other states and attract more investment in the EV sector.
Karnataka was the first state to come up with an EV policy about four years ago and it came under pressure over the last couple of years to equal or better the sops offered by a few other states.
The state’s 2017 EV policy, hoped to generate investments of Rs 31,000 crore in R&D and manufacturing. Since then, 11 states including Gujarat, Delhi, Maharashtra, Tamil Nadu, Telangana and Andhra Pradesh have brought out their own policies. Bengaluru is also home to promising EV startups in the country such as Ola Electric, Sun Mobility and Ather.
The committee will define and certify EV components eligible for the sops. The move will help the government identify and promote genuine investments in the EV sector, an official said.
The Cabinet had, on May 27, cleared two incentives in place of old ones to align the sops with investor expectations and accelerate the adoption of EV updates in the state.
The revised policy will give 15% capital subsidy on the value of fixed assets (VFA) over five annual equal payments. The offer will apply to units operating out of plots of up to 50 acres.
The subsidy will apply to EV assembly, manufacturing, component manufacturing, battery pack module manufacturing, EV charging infrastructure equipment manufacturing and a few other EV production related units.
The revised policy also provides for a production linked incentive (PLI) of 1% on the turnover for a period of five years starting from the first year of commercial operations.
The government has set a cap of 50% of the value of fixed assets for EV industries to get the incentive. In the event incentives claimed by a unit were more than half the worth of its fixed assets, then the Finance department will vet such cases. The policy also makes it clear that the total sops for a unit cannot cross 100% of the value of its fixed assets.
With the revised policy, the government hopes to gain an edge over other states and attract more investment in the EV sector.
Karnataka was the first state to come up with an EV policy about four years ago and it came under pressure over the last couple of years to equal or better the sops offered by a few other states.
The state’s 2017 EV policy, hoped to generate investments of Rs 31,000 crore in R&D and manufacturing. Since then, 11 states including Gujarat, Delhi, Maharashtra, Tamil Nadu, Telangana and Andhra Pradesh have brought out their own policies. Bengaluru is also home to promising EV startups in the country such as Ola Electric, Sun Mobility and Ather.
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