Tamil Nadu’s Electric vehicle policyDate: 22 September 2019 Tags: Infrastructure
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.
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.
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.