10 Indian States & Union Territories EV policies & their objectives

The Indian government is taking many initiatives to promote and to adopt the use of electric vehicles in India. To cut down the import of oils and most importantly to reduce the pollution levels in the country. In that regard, the Union Cabinet approved Rs 10,000 crore under the second phase of FAME India (Faster Adoption and Manufacturing of Electric Vehicles in India) for the promotion of electric and hybrid vehicles to incentivize the manufacture of electric vehicles.

As it is charged to become a global hotspot for electric mobility, the government of India has created momentum through several policies to encourage the adoption of electric mobility.

The following 10 states and Union territories (UT) such as Andhra Pradesh (AP), Delhi, Karnataka, Kerala, Telangana, Maharashtra, Tamil Nadu (TN), Uttarakhand, Bihar, Uttar Pradesh (UP) have published draft electric vehicles policies or notified final policies which includes the fiscal, non-fiscal and other incentives.

Not only the government, but manufacturers too joined to achieve the electric mobility mission with their various electric categories products such as rickshaws, two-wheelers, three-wheelers, passenger vehicles, buses, and power trains.

The courageous startups are not behind, we are witnessing every day a new startup is coming up with new their new innovations including the electric vehicles, battery, and charging infrastructure and more.

Despite all this, the adoption of electric vehicles in the country is slow due to the high cost and range. The electric vehicles produced for Indian markets must suit the Indian markets and customers. But due to the EVs batteries costing 1/3 of the price of the EVs making the EVs costlier, in that scenario the government incentives on electric vehicles purchase to make them affordable make sense. 

Let us discuss the 10 Indian States & Union Territories EV policies & their objectives

Here are some of the objectives listed down for every state. 

Andhra Pradesh EV Policy 

Objectives

• Andhra Pradesh has set a target to one of the best Indian States in the electric vehicles field by 2029 and a global destination by 2050.
• It aims to have 1,000,000 EVs on road by 2024.
• Policy focuses on production, services and customer sides of the EV value chain and infrastructure value chain.
• Making Andhra Pradesh a global hub for electric mobility development and manufacturing.
• To promote innovation using the grants and venture funds to research organizations, incubators, and startups working on next-generation battery technology, fuel cell technologies, EV power trains, and EV electronics.
• Making an investment in charging and battery swapping infrastructure and fuelling station and hydrogen generation station development.
• Skilled workforce to meet the needs of the EV ecosystem.
• Promotion of adoption of EVs to make eco-friendly cities.
• Using a vehicle to everything (V2X) platforms building next-generation transportation.

The date of notification of this EV policy is 8th June 2018 and it is the final EV policy.

Bihar EV Policy

Objectives

• Bihar is one of the fast-growing markets for e-rickshaws.
• It aims to promote the e-rickshaws as its market is strong.
• It aims to amend the policy and prioritize the EV sector.
• The policy aims to reimburse the stamp duty, registration duty and SGST, other tax benefits.
• A special incentive of INR 10,000 on Li-ion battery e-rickshaws provided by the state.
• Transform all the pedal rickshaws to electric by 2022.
• Making manufacturing environment in the state.
• Sustainable transport sector goals to be fulfilled.
• Making Bihar EV sector investment destination.
• Creating charging infrastructure at every 50 km on state/national highways.
• Creating direct 10,000 employment opportunities in the state.

This policy date of notification is 14 June 2019 and it is in draft status.

Delhi EV Policy 

Objectives

• It has included pollution cess, an air-quality parking surcharge and an environment compensation charge for existing petrol/diesel vehicles and new ICE vehicles.
• It provides scrappage and deregistration incentives for a few ICE vehicle categories.
• It promotes the benefits of adopting EVs and building customer trust.
• It plans to design vocational courses.
• Focuses on transport and taxi fleets.
• waiver of road tax/registration tax/one-time parking fees/ permit fees, etc.
• Creating jobs in driving, selling, financing, servicing and charging EVs.
• The rapid adoption of EVs with the aim to adopt 25% by 2023.

This policy date of notification is 27 November 2018 and it is in draft status.

Karnataka EV Policy

Objectives 

• Karnataka aspires to be an EV capital of India
• It focusing on R&D, production, services, and customer aspects.
• Provides a special package of incentives and concessions for ultra mega and super mega EV enterprises.
• Interest free-loans on net SGST for EV manufacturing enterprises.
• 100% reimbursement for converting land from agricultural to industrial use to set up EV/components manufacturing units.
• Encourage plant training by providing a stipend of up to 50% per month per trainee.
• Maintain Karnataka’s position as a preferred destination for investment in EV manufacture.

This policy date of notification is 25 September 2017 and it is the final policy. 

Kerala EV Policy

Objectives

• Kerala aspires to promote eco-friendly tourism.
• It focuses on both EV value chain and infrastructure value chain
• Localized manufacturing will focus on complete vehicles, electric drivetrain, power electronics, energy systems, and storage.
• It promotes shared mobility and clean transportation.
• Reducing pollution by making the transport system more energy efficient
• Building class training skills and skill centers for EV professionals
• Its target of 2020 to pilot a fleet of 200,000 2Ws, 50,000 3Ws, 1,000 goods carriers, 3,000 buses, and 100 ferry boats.
• Till 2022 1 million EVs on road.

This policy date of notification is March 2019 and it is the final policy.

Maharashtra EV Policy

Objectives

• Developing the state as the leader in the EV manufacturing and use of EVs.
• New job opportunities.
• Promote the export of EV, components, battery and charging equipment.
• Encourage R&D, innovation and skill development in the EV field.
• A sustainable transport system.
• Introduction of EV based curriculum in technical and skill development boards, setting up a center of excellence, etc.
• Incentives for micro, small and medium enterprises (MSMEs) and large manufacturing units.
• 25% subsidy for commercial public charging stations
• EVs road tax and registration exemption

This policy date of notification is 6 February 2018 and it is the final policy.

Tamil Nadu EV Policy 

Objectives

• Tamil Nadu is meant home for the major automobile manufacturing companies.
• It developed the “EV special manufacturing package includes incentives to make supply-side environment strong. 
• Encouraging startups by establishing a venture capital and business incubation service.
• 100% reimbursement of state GST paid on the sale of EVs manufactured in the state, 15% capital subsidy on intermediate products used for manufacturing, 100% electricity tax exemption for manufacturing industries and stamp duty exemption.
• 50% of land subsidy if in southern districts 15% for other regions.
• 10% parking space for EVs in all commercial buildings.
• Recycling the reuse used batteries and dispose of the rejected batteries in an eco-friendly way.
• EVs target 2030 to convert 5% of the buses year-on-year, and substantial conversion of shared mobility fleets, institutional vehicles, and e-commerce delivery and logistics vehicles.

This policy date of notification is 16 September 2019 and it is in the draft status. 

Telangana EV Policy

Objectives

• The EV policy aims to make Telangana the EV capital of India.
• It focuses on the promotion of skills development and innovation in e-mobility.
• Focuses on making Telangana a preferred destination for EV and component manufacturing.
• Develop Telangana as a global center for cutting-edge research and innovation in EVs and other technologies such as autonomous and connected vehicles.
• EV transition of cabs, public transport and institutional transport, freight, logistics firms, delivery services, intracity goods delivery, etc.
• Provision for retro fitment of existing ICE vehicles including passenger cars, 2Ws, and auto rickshaws.

This policy date of notification is 22 May 2018 and it is in the draft status. 

Uttarakhand EV Policy 

Objectives

• Uttarakhand compliments the state’s mega industrial and investment policy, 2015.
• It focuses on overall intention to promote research and innovation, skills development in the EV domain.
• Fiscal subsidies including interest subsidy, electricity subsidy, electricity duty exemption, stamp duty exemption, Employee Provident Fund reimbursement, state GST subvention, and incentivizing the manufacture of lithium batteries with high mileage.
• The road -tax exemption, registration-fee exemption, SGST subvention to all buyers of EVs and zero-interest loans to state-government employees to purchase EVs in the state.
• Preferred destination for EV and EV component manufacturing.
  Creating job opportunities on demand and supply sides.
• The target of 2030 to make 100% electrifying public transport, shared mobility including e-bikes taxis and goods and transport using electric 2W, 3W and 4W, and other mini goods transport vehicles in 5 main cities.

This policy date of notification is 5 October 2018 and it is in the draft status. 

Uttar Pradesh EV Policy 

Objectives

• It provides various incentives such as capital interest subsidy, infrastructure interest subsidy, industrial quality subsidy, exemption from stamp duty and electricity duty, SGST reimbursement, etc.
• The land subsidy, reimbursement up to 25% of the cost of land for EV and battery manufacturing.
• UP aims to be an R&D hub for EVs by focusing on the next generation of battery management systems, drivetrain components, battery chemistry, fuel cell, and intelligent transportation systems.
• State also planning incubation centers and has a start-up fund in place.
• The government will tie up with colleges and universities for more research.
• UP is planning to set up EV testing centers with 24/7 power back-up and can be used by manufacturers and service providers.
• 50% on annual interest on loans taken in the form of reimbursement to set up waste treatment plants.

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