The State Government of Tamil Nadu has announced a new state EV policy. The new policy covers the areas of batteries, charging infrastructure and importantly hybrid vehicles as well.
The new policy grants incentives to all electric vehicles. These include the likes of battery electric vehicles (BEV), plug-in electric vehicles (PEV), plug-in hybrid electric vehicles (PHEV) and crucially strong hybrid electric vehicles (SHEV). The incentives will include concessions in road tax, registration and permit fees.
The policy also mentions incentives to the tune of INR 5,000 to INR 10,00,000 on commercially registered electric vehicles. This will depend on the battery capacity of the electric vehicle. Additionally, the Government will aso plan to incentivise the conversion of ICE engined vehicles to electric powertrains.
New EV projects will also get a 100% electricity tax exemption for a period of 5 years. This will be for the power purchased from the state power distribution company or electricity that is generated from captive sources.
Above all, the Government will promote certain cities for the implementation of e-mobility solutions. These include the likes of Chennai, Coimbatore, Tiruchirappalli, Madurai, Salem and Tirunelveli. Initially, the aforementioned cities will be chosen as pilot cities for this project. To increase the adoption of EVs in these cities, the State will provide incentives for set-up of electric charging and battery swapping stations. The Government will also adjust the price of electricity supplied to public charging stations.
According to the State Government, the new EV policy is expected to add over 48,000 new employment opportunities. Not to mention, the EV Projects will be provided with incentives in the form of reimbursements for employer’s contribution to EPF as well as financial support to firms who plan to get into EV manufacturing.
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