"The Karnataka Electric Vehicle & Energy Storage policy of 2017 has been amended to give impetus to the electric mobility sector," said state Industries Department Director R Ramesh.

Electric VehicleImage for representation
Money EV Wednesday, June 02, 2021 - 12:30

In a bid to attract more investments in the e-mobility sector, the Karnataka government has amended its electric vehicle and energy storage policy, an official said on Tuesday. "As decided at the May 27 state cabinet meeting, the Karnataka Electric Vehicle & Energy Storage policy of 2017 has been amended to give impetus to the electric mobility sector and attract more investments over the next 5 years," said state Industries Department Director R Ramesh in the order issued on Tuesday.

As incentives provided under the 2017 policy were lower than those offered by other states, the amendment will enable 15% capital subsidy on value of fixed assets over 5 equal annual payments for 50 acres of land for EV assembly or manufacturing enterprises. "With the increased focus on EV manufacturing, the incentives have been revised in line with investor expectations to accelerate the adoption of EV uptake in the state," said Ramesh in the order.

The tweaked policy also offers production linked subsidy of 1% on turnover for 5 years, starting from the first year of commercial operations. The incentives will be applicable to large, mega, ultra, super mega EV assembly or manufacturing, EV components or cell making, and battery pack or module and charging infrastructure equipment enterprises.

A technical committee will be constituted to define and certify EV components claiming incentives and concessions under the policy. "The quantum of incentives sanctioned to a manufacturing/assembly unit under this policy shall not exceed 100 per cent of the value of fixed assets (VFA) created by the unit," said the order.

Become a TNM Member for just Rs 999!
You can also support us with a one-time payment.