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Andhra Pradesh has introduced the Sustainable Electric Mobility Policy (2024-29), designed to establish the state as a leading hub for electric vehicle (EV) manufacturing. The five-year policy seeks to attract private investments to build advanced infrastructure, enhance urban mobility, and reduce emissions from the transportation sector.
Andhra Pradesh, through this policy, aims to capitalise on the expanding EV market, driving industrial growth, improving urban mobility, and contributing to India’s sustainability goals. The comprehensive measures outlined in the policy are expected to foster significant progress in EV manufacturing and infrastructure development in the state.
The policy provides a comprehensive framework for fostering EV-related industries. It encourages the establishment of manufacturing units for electric vehicles, EV components, and Electric Vehicle Supply Equipment (EVSE). It also supports the development of public and private charging or battery-swapping infrastructure.
The policy benefits extend to diverse stakeholders, including customers registering EVs in Andhra Pradesh, operators of public transport systems, vehicle scrapping facilities, e-waste recycling centres, automated testing centres, private park developers, and R&D institutions.
To support manufacturers, the policy includes a range of financial incentives. It offers investment subsidies of up to 35% of eligible fixed capital investments, capped at ₹7 crore. Manufacturers are also eligible for a reimbursement of 5% of their annual turnover for three years after commencing production, with a maximum limit of ₹10 crore.
Additionally, the policy reimburses power costs at ₹1 per unit, up to ₹15 lakh annually for six years. For battery manufacturers specifically producing for EVs, 50% of electricity duty costs will be reimbursed over six years.
Further support includes a subsidy for meeting regulatory quality standards, with up to 50% of testing and certification costs reimbursed, limited to ₹2 lakh. Similarly, costs incurred for patent filings or intellectual property protection are eligible for reimbursement, also capped at ₹2 lakh.
Land-related incentives include full reimbursement of stamp duty and registration charges for industrial land purchases, as well as 100% reimbursement of land conversion fees.
Additionally, manufacturers will receive a training subsidy covering 100% of employer contributions to the Employees’ Provident Fund (EPF), capped at ₹1 lakh annually per enterprise for three years from the commencement of production.
The policy sets ambitious targets to measure its impact by 2029. It aims to facilitate the registration of at least 2 lakh new two-wheelers, 10,000 three-wheelers, and 20,000 four-wheeler battery electric vehicles (BEVs). In the public transport domain, it seeks to achieve the complete electrification of the Andhra Pradesh State Road Transport Corporation (APSRTC) fleet.
To enhance charging infrastructure, the policy envisions one charging station every 30 kilometres along designated green corridors and one per 3×3 kilometre grid in designated e-mobility cities. It also plans to allocate a corpus fund of ₹500 crore to develop these e-mobility cities and establish 100 incubation centres dedicated to e-mobility startups.
The announcement comes amid significant growth in India’s EV market. In 2023, EVs accounted for 6.5% of total vehicle sales, with the market witnessing a 116% growth rate, particularly in the electric three-wheeler cargo and passenger segments.
States like Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu, and Rajasthan currently lead in EV adoption. Market projections suggest that EV penetration in India could surpass 40% by 2030, with the sector’s value expected to rise from $3.21 billion in 2022 to $113.99 billion by 2029.
Andhra Pradesh, through this policy, aims to capitalise on the expanding EV market, driving industrial growth, improving urban mobility, and contributing to India’s sustainability goals. The comprehensive measures outlined in the policy are expected to foster significant progress in EV manufacturing and infrastructure development in the state.
The policy provides a comprehensive framework for fostering EV-related industries. It encourages the establishment of manufacturing units for electric vehicles, EV components, and Electric Vehicle Supply Equipment (EVSE). It also supports the development of public and private charging or battery-swapping infrastructure.
The policy benefits extend to diverse stakeholders, including customers registering EVs in Andhra Pradesh, operators of public transport systems, vehicle scrapping facilities, e-waste recycling centres, automated testing centres, private park developers, and R&D institutions.
To support manufacturers, the policy includes a range of financial incentives. It offers investment subsidies of up to 35% of eligible fixed capital investments, capped at ₹7 crore. Manufacturers are also eligible for a reimbursement of 5% of their annual turnover for three years after commencing production, with a maximum limit of ₹10 crore.
Additionally, the policy reimburses power costs at ₹1 per unit, up to ₹15 lakh annually for six years. For battery manufacturers specifically producing for EVs, 50% of electricity duty costs will be reimbursed over six years.
Further support includes a subsidy for meeting regulatory quality standards, with up to 50% of testing and certification costs reimbursed, limited to ₹2 lakh. Similarly, costs incurred for patent filings or intellectual property protection are eligible for reimbursement, also capped at ₹2 lakh.
Land-related incentives include full reimbursement of stamp duty and registration charges for industrial land purchases, as well as 100% reimbursement of land conversion fees.
Additionally, manufacturers will receive a training subsidy covering 100% of employer contributions to the Employees’ Provident Fund (EPF), capped at ₹1 lakh annually per enterprise for three years from the commencement of production.
The policy sets ambitious targets to measure its impact by 2029. It aims to facilitate the registration of at least 2 lakh new two-wheelers, 10,000 three-wheelers, and 20,000 four-wheeler battery electric vehicles (BEVs). In the public transport domain, it seeks to achieve the complete electrification of the Andhra Pradesh State Road Transport Corporation (APSRTC) fleet.
To enhance charging infrastructure, the policy envisions one charging station every 30 kilometres along designated green corridors and one per 3×3 kilometre grid in designated e-mobility cities. It also plans to allocate a corpus fund of ₹500 crore to develop these e-mobility cities and establish 100 incubation centres dedicated to e-mobility startups.
The announcement comes amid significant growth in India’s EV market. In 2023, EVs accounted for 6.5% of total vehicle sales, with the market witnessing a 116% growth rate, particularly in the electric three-wheeler cargo and passenger segments.
States like Uttar Pradesh, Maharashtra, Karnataka, Tamil Nadu, and Rajasthan currently lead in EV adoption. Market projections suggest that EV penetration in India could surpass 40% by 2030, with the sector’s value expected to rise from $3.21 billion in 2022 to $113.99 billion by 2029.
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