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Tamil Nadu govt unveils new Electric-Vehicle Policy

Tuesday, 17 Sep 2019
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Chief Minister of Tamil Nadu Edappadi K Palaniswami unveiled the state’s Electric-Vehicle Policy on 16 September 2019. It has set out a vision to attract Rs 50,000 crore in investments and create 1.5 lakh new jobs.

The ‘Tamil Nadu Electric Vehicle Policy 2019’ aims to create a comprehensive EV ecosystem in the state. The government under the policy has also chalked out a strategy to make Tamil Nadu the preferred destination for EVs and component manufacturing units, including battery and charging infrastructure.

The support measures announced in the EV policy include 100 percent road tax exemption for all types of EVs, capital subsidies, reimbursement of state GST, subsidy on land cost and special incentives for job-creating EV projects.

The EV policy is a comprehensive one as it covers the manufacture of electric vehicles, batteries and accessories. Apart from capital subsidy and tax exemption, it has given land subsidy. Also, the government has decided to create an EV park with plug-and-play facilities. This is also a unique feature when compared with other states.

The new EV policy has also offered to provide incentives under a special package for investments above Rs 50 crore and create at least 50 direct jobs in the form of new projects or expansion projects. Investments made from 1 April 2018 will be considered for this.

The state government will set up exclusive EV parks in major auto-manufacturing hubs and also in areas that have the potential to attract EV investments. These EV parks will enable the creation of a vendor ecosystem that will serve OEMs.

The state government has attempted to put southern districts also on the investment map. The new Electric Vehicle Policy offers to provide investors 50 percent subsidy on the land cost if the investment is made to obtain land from government agencies in southern districts, while in other districts it is just 15 percent.

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