Tamil Nadu unveils EV policy: Eyes Rs 50k crore investment, creation of 1.5 lakh jobs

The state is offering 100% road tax exemption for electric two-wheelers, auto-rickshaws, cars and light-goods carriers used for commercial transport until December 2022.
Tamil Nadu unveils EV policy: Eyes Rs 50k crore investment, creation of 1.5 lakh jobs
Tamil Nadu unveils EV policy: Eyes Rs 50k crore investment, creation of 1.5 lakh jobs
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In a bid to encourage adoption of electric vehicles, the AIADMK government in Tamil Nadu has made public its stated policy on electric vehicles. Unveiled by CM Edappadi K Palaniswami, the policy offers incentives to those buying ‘clean’ automobiles and even talks about setting up charging infrastructure.

The ‘Tamil Nadu Electric Vehicle Policy 2019’ has envisioned attracting investments of Rs 50,000 crore to the state and hopes to create 1.5 lakh new jobs.

At the consumer-end, there is total exemption from road tax for all electric vehicles including two-wheelers, auto-rickshaws, cars and light-goods carriers, even if used for commercial transport, until the end of 2022.

There is already a 50% exemption from road tax for private electric car owners in the state. This is being increased to 100% under the new policy.

For building charging stations, the TN government has opened up multiple avenues. While promoting private investments, the state’s power distribution outfit Tangedco will offer a public-private partnership (PPP) model for installing charging ports at various locations across the state. The National and state highways will be chosen on priority and charging stations will be set up in every 25 kilometres.

Within the cities, the state government offices could be asked to make space for creating charging points for electric vehicles. Major cities such as Chennai, Salem, Madurai, Trichy and Tirunelveli have been identified for this purpose.

In a multi-pronged strategy, the policy says that if private service providers choose to install clean energy sources like wind or solar power within the state, then their charging stations will be supplied with ‘preferential’ power and they will not be charged any connection fees as well.

On the supply side, those investing more than Rs 50 crore and providing employment to more than 50 people for manufacture of electric vehicles, components, batteries or charging equipment will get 100% exemption from SGST (the state’s component of GST) till 2030. The exemption will be granted on a complete refund basis. Where such refunds are not possible due to tax being exempt for other reasons, then a 15% capital subsidy will be granted to such units. This facility can be availed till 2025.

The investors could get subsidies on a host of other charges payable to the state government particularly if the units are set up in any one of the Southern districts in the state considered less developed.

Another interesting inclusion in the Tamil Nadu state’s policy for electric vehicles is that commercial buildings like hotels, mall, cinema halls etc. will have to earmark at least 10% space for electric vehicles and charging stations erected there. This will apply to large apartment complexes as well.

The government has appointed a committee comprising bureaucrats from different ministries to monitor the implementation of the policy.

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