The Karnataka Cabinet has decided to give 15 percent capital subsidy to investors in the electric vehicle sector. The State Cabinet has decided to amend its Karnataka Electric Vehicle & Storage Policy, 2017, to improve upon its existing policy.
The state government will give 15 percent capital subsidy on the value of fixed assets over five equal annual payments. The sops will apply to plots of up to 50 acre.
The government will also give a production linked incentive (PLI) of one percent of turnover for a period of five years from the first year of commercial operations.
The state government is also looking to create an EV cluster in Ramanagar district near Bengaluru. The state’s policy, as of now, is focused on incentives linked to GST.