EV Policy of Southern States of India | Karnataka | Kerala | Tamil Nadu

Analysis of ​Karnataka ​State EV policy

Bengaluru is the major IT hub of India and home to many start-ups. Karnataka state wishes to be an electric vehicle (EV) capital of India. Hence, it has come up with a very descriptive EV adoption policy.

Karnataka’s EV policy focusses on creating an infrastructure for R&D, production and services through numerous initiatives.

Karnataka wants to be the preferred destination for attracting investment in the manufacturing of EVs. It has set the target of $4.4 billion in investment and the opportunity of employment for 55,000 people.

The policy outlines the roadmap to create a favourable environment for the transition from ICE vehicles to EVs developing R&D in e-mobility. The state also plans to create a venture capital fund to stimulate e-mobility start-ups.

For localization of EV manufacturing, Karnataka is planning to provide a special monetary package of incentives and concessions for companies involved in EV manufacturing, EV charging and swapping equipment manufacturing and battery manufacturing.

Currently, the government has started giving interest-free loans on SGST as incentives for EV manufacturing units. One of the concessions given by the government is 100% reimbursement of land conversion fees for converting land from agricultural to the industrial unit for manufacturing units of EV related equipment.

To promote in-plant training, the state will beat the 50%of training costs up to Rs.10,000 per month per trainee. The capital subsidy will be made available to inspire the manufacturers to set up effluent treatment plants.

To develop the charging infrastructure, Karnataka’s EV policy displays the state’s interest in creating a secondary market for batteries through battery storage.

The state will be partnering with industry experts and academia to devise standards for battery manufacturing. Charging infrastructure should be economically viable and needs to attract private investment. Hence, there tax exemption on electricity tariffs and an investment subsidy will be provided for setting up the first 100 charging stations.

Also read: Adoption of Electric Vehicles in Shared CAB Industry

Analysis of ​Kerala ​State EV policy

Kerala is the tourism capital of India and its EV policy revolves around it. The objective of Kerala’s EV policy is to encourage shared mobility and make the transport system energy-efficient to reduce pollution. Kerala is focusing on manufacturing EV components

which can help in developing new SME industries. The state has set the target of a fleet of 100+ ferry boats, 1000 goods carriers, 3,000 buses, 50,000 3-wheelers and 2,00,000 2-wheelers.

Kerala looks forward to encouraging eco-friendly tourism. E-mobility is a major step towards that goal. Local manufacturers involved in the manufacturing of power electronics, energy systems and storage, electric powertrain and the complete vehicle will be able to avail themselves financial and regulatory benefits provided in the state’s industrial and IT policies.

A special fund will be created to support local manufacturing and land allotment for such projects will be prioritized. Funds are allocated to promote local R&D and establish a local centre of excellence for EVs with a focus on software development, drivetrain technology and battery technology. Some incentives like state tax breaks, road-tax exemption, toll charges exemption, free permits for fleet drivers, and free parking are in place for EV buyers.

To create awareness, the government will create e-mobility demonstration hubs at places like technology hubs and business hubs. A favourable infrastructure with a network of charging stations with reasonable power tariffs. This is done to increase the savings of the transport sector and transport utility. Kerala has set the target for 1 million EVs on road by the year 2022.

Also read: CORONA Virus Pandemic Effect on EV Industry

Analysis of ​Tamil Nadu ​State EV policy

State of Tamil Nadu is a major Auto manufacturing hub with companies like Mahindra and Mahindra, Fiat Chrysler, Ford, Hyundai and so on. Tamil Nadu has set the target of attracting Rs. 50,000 Cr investment for EVs and component manufacturing units and developing charging infrastructure.

The policy is framed with the objective to make a favourable atmosphere for industry and R&D institutions to work on research in EV technologies. And the other objective is to create an infrastructure of power supply to a network of charging stations with reasonable tariff rates. Tamil Nadu is hopeful of creating 150,000 new jobs in the EV industry.

Tamil Nadu has developed an ‘EV special manufacturing package’ to strengthen the supply side of the EV sector. New venture capital and business incubation services are being set-up to encourage start-ups in this sector. The state government has selected three departments to carry out three major activities to fulfil the policy’s objectives.

The transport department will work on issuing guidelines, Industry department will administer manufacturing-related incentives under EV policy and the energy department will ensure that the charging infrastructure has all the necessary facilities.

The state will encourage existing apartments to install charging stations and mandate all forthcoming constructions to be EV ready. Charging service providers will be able to make their own renewable energy generation units on their premises. Recycle, Reuse and urban

mining of rare metals in the used battery will be carried out to promote eco-friendly manufacturing.

Also read: Delhi & Bihar Electric Vehicle Policy

The state government will be giving following incentives to boost manufacturing: 100% reimbursement on SGST paid on the sale of EV, 15% capital subsidy on intermediate products used for manufacturing, 100% electricity tax and stamp duty exemption for the EV manufacturing industry, 15% land subsidy or 50% land subsidy for investing in the southern district and many more. TN has set the target for 2030 to convert 5% of buses to EV year-on-year.