Tamil Nadu Chief Minister MK Stalin introduced ‘Tamil Nadu Electric Vehicles Policy, 2023’ on 14 February, 2023. The policy focuses on electrification of commercial vehicles (EV) and ensuring a robust EV ecosystem in the state.

Under the new policy, the Home (Transport) Department will empower Road Transport Offices (RTOs) to register commercial EVs, including EV-two wheelers. In the area of tariff, the proposed changes include a 75 percent reduction in existing energy charges for the first two years and 50 percent in the subsequent two years. To incentivise charging during non-peak hours, energy charges will be reduced by 50 percent between 8 am and 4 pm.

Furthermore, the policy has announced incentives to 6,000 electric two-wheelers, 15,000 electric three-wheelers, 3,000 electric cars, and 300 e-buses in the commercial segment every year. Incentives will be in the range of Rs 30,000 to Rs 10 lakh and will be valid till December 31, 2025.

The policy takes forward the investment and job creation goals of “Tamil Nadu Electric Vehicle Policy, 2019’ which envisages attracting Rs 50,000 crore of investments in EV manufacturing, and generating 1.5 lakh new jobs during the policy period.

Companies that seek to set up public charging stations will be eligible for a 25 percent subsidy of the cost involved in the purchase of equipment and machinery. Similarly, the first 200 public battery swapping stations in the state will be eligible for a capital subsidy at 25 percent.

Overall, the new policy will facilitate EV adoption, development of EV cities in the state and elevate Tamil Nadu as a preferred destination for EV manufacturing.