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<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Tamil Nadu State Government introduced its first-ever electric vehicle (EV) policy. The Tamil Nadu Electric Vehicle Policy, 2019, provides for various concessions to manufacturers of e-vehicles.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Tamil Nadu, known as the Detroit of South India, accounts for 6.4% of the electric vehicles sold in the country as of July 31, 2019. The policy aims to create a cluster of EV manufacturing units in the state.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Policy highlights</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">To encourage start-ups in the EV sector, incubation services will be offered in the form of office space, common facilities and mentoring support.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">An EV Venture Capital Fund will be created to offer financial support to EV start-ups to enable them to scale up their business.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">EV-related and charging infrastructure manufacturing units will be provided 100% exemption on electricity tax till December 2025.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Units that obtain land by sale or lease shall be entitled to 100% exemption on stamp duty for transactions till December 2022.</span></span></p>
</li>
</ul>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">The government will provide a higher capital subsidy of 20% of the eligible investment over 20 years in cases where units are engaged in making EV batteries.</span></span></p>
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<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Tamil Nadu State Government introduced its first-ever electric vehicle (EV) policy. The Tamil Nadu Electric Vehicle Policy, 2019, provides for various concessions to manufacturers of e-vehicles.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Tamil Nadu, known as the Detroit of South India, accounts for 6.4% of the electric vehicles sold in the country as of July 31, 2019. The policy aims to create a cluster of EV manufacturing units in the state.</span></span></p>
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<ul>
<li>
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</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">An EV Venture Capital Fund will be created to offer financial support to EV start-ups to enable them to scale up their business.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">EV-related and charging infrastructure manufacturing units will be provided 100% exemption on electricity tax till December 2025.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Units that obtain land by sale or lease shall be entitled to 100% exemption on stamp duty for transactions till December 2022.</span></span></p>
</li>
</ul>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">The government will provide a higher capital subsidy of 20% of the eligible investment over 20 years in cases where units are engaged in making EV batteries.</span></span></p>
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