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Current Affairs

Tamil Nadu’s Electric vehicle policy

Date: 22 September 2019 Tags: Infrastructure

 

Issue

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.

 

Background

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.

 

Policy highlights

  • To encourage start-ups in the EV sector, incubation services will be offered in the form of office space, common facilities and mentoring support.

  • An EV Venture Capital Fund will be created to offer financial support to EV start-ups to enable them to scale up their business.

  • EV-related and charging infrastructure manufacturing units will be provided 100% exemption on electricity tax till December 2025.

  • Units that obtain land by sale or lease shall be entitled to 100% exemption on stamp duty for transactions till December 2022.

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.