Tamil Nadu unveils E-vehicle policy

Tamil Nadu government on Monday unveiled Electric vehicle policy of 2019 to woo E-vehicle manufacturers to the state. E- vehicles that are manufactured and sold inside the state will get 100% reimbursement in SGST(State Goods and services tax) until 2030. Chief Minister Edappadi Palaniswami released the policy that gives 100%  exemption from motor vehicle tax for all E-vehicles manufactured in the state that includes two-wheelers, 3 wheeler auto-rickshaws, cars, buses and light commercial vehicles (LCVs).

Chennai (Tamil Nadu): The Tamil Nadu government on Monday unveiled Electric vehicle (EV) policy 2019 to woo E-vehicle manufacturers to the state. Tamil Nadu Chief Minister Edappadi Palaniswami released the policy that gives 100% exemption from motor vehicle tax for all E-vehicles manufactured in the state that includes two-wheelers, 3 wheeler auto-rickshaws, cars, buses and light commercial vehicles (LCVs).

E- vehicles that are manufactured and sold inside the state will get 100% reimbursement in SGST (State Goods and services tax ) until 2030.

According to the policy, E- vehicle and charging infrastructure manufacturing will get 100% electricity tax exemption.

The state will also provide 15% and 20% capital subsidy for investments in EV manufacturing and battery production respectively.

The state government will build exclusive E- vehicle manufacturing parks in existing auto hubs and as well as investment attractive destinations.

Manufacturing units in Government park will get 20% subsidy on lands and those who set up manufacturing units in Southern part of the state will get 50% subsidy on lands.

To encourage small players into the EV ecosystem, the government announced that MSMEs (Ministry of Micro, Small & Medium Enterprises) involved in the EV component and charging infrastructure manufacturing will get more than the existing 20% capital subsidy.

Tamil Nadu government plans to attract Rs.50, 000 crore investments and 1.5 lakh job through E- vehicle manufacturing sector in the state, and will provide subsidy to EPF contribution for the employer.

Addressing the issue raised by Internal combustion Engine Vehicle manufacturers, the state government will provide transition support for existing automobile manufacturers to the EV ecosystem, which includes a one-time re-skilling allowance for existing employees.

The government will provide common facilities and mentoring support for start-ups to encourage them into the EV sector.

Tamil Nadu also plans to enhance EV infrastructure in the state by setting up EV charging facilities across the state in places such as hotels, malls, shopping complexes.

According to the policy, building and construction laws will be tweaked to integrate charging infrastructure in residential buildings.

Tamil Nadu Chief Minister in his recent three-nation tour to attract foreign investment also visited Tesla electric car manufacturing unit in San Francisco.