Keen on attracting electric vehicle manufacturers to set up shop in 'Detroit of India,' Tamil Nadu Government on Monday released its much-awaited Electric Vehicle (EV) Policy here. The policy includes incentives like full reimbursement of SGST paid on the sale of vehicles, 100 per cent exemption on electricity tax and a subsidy between 15 and 50 per cent on the cost of land.
The 31-page document released by Chief Minister Edappadi K Palaniswami also offered a slew of incentives for those who shift to electric cars, two-wheelers, three-wheelers and transport vehicles from the existing models that consume fuel.
The silver lining of the policy is 100 per cent motor vehicle tax exemption for all EV two-wheelers, cars, auto-rickshaws, buses and light goods carriers till the year 2022.
The policy targets to achieve Rs 50,000 crore of investment in EV manufacturing and in creating a comprehensive EV ecosystem in Tamil Nadu. The state government also plans to generate 1.5 lakh new jobs by wooing EV manufacturers to set up their plants in Tamil Nadu.
To decentralise the automobile hub from Chennai, the policy has offered to provide 50 per cent subsidy on the cost of land for those companies that set up EV manufacturing units in the southern districts of the state till December 2022. Chennai is popularly known as the ‘Detroit of India’ since it is home to several automobile majors like Hyundai, Ford, Renault Nissan, BMW, TVS and Ashok Leyland.
Besides this, the government has announced 100 per cent exemption on electricity tax for EV-related and charging infrastructure manufacturing industries in the state till December 2025. To augment the auxiliary industry of battery manufacturers, the policy has promised a higher capital subsidy of 20 per cent of eligible investment over 20 years.
While 100 per cent road tax exemption will be provided till December 2022 for those who purchase electric two-wheelers, auto-rickshaw permit fees will be waived for e-autos till December 2022 and 100 per cent road tax exemption till the aforesaid period.
The government has also proposed to convert auto-rickshaws into electric rickshaws in all six major cities of Chennai, Coimbatore, Tiruchirappalli, Madurai, Salem and Tirunelveli within a span of ten years and mooted another ambitious plan to replace around 5 per cent of the 21,000 buses run by the state-owned transport corporations every year.
It also promised transition support for existing automobile manufacturers to adapt to the EV manufacturing system, including a one-time reskilling allowance, for the existing production line employees. On the infrastructure, the policy said TANGEDCO will set up charging infrastructure on its own or through public-private partnership models and such provisions will be ensured in all commercial buildings.