Telangana announces EV policy, targets Rs 23,000 crore investment by 2030

The Telangana government has unveiled an ambitious EV Policy aimed at making it an EV manufacturing hub.

By Nilesh Wadhwa calendar 07 Aug 2020 Views icon29458 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp

The Telangana government has given approval for the state’s Electric Vehicle policy that aims to make it an electric vehicle manufacturing hub and drive adoption of the eco-friendly vehicles. The state has revealed an ambitious plan to draw investment of up to $3 billion (Rs 23,000 crore) by 2030. It also aims to create direct employment of more than 120,000 and 250,000 indirect opportunities.

The policy has announced incentives for the overall EV ecosystem including exemption of 100 percent road tax and registration for the first 200,000 e-two-wheelers; 5,000 units of four-wheelers and 20,000 electric autorickshaws.

For customers looking for retrofit technology, the policy will incentivise three-wheelers for up to 15 percent of the cost (capped at Rs 15,000 per vehicle) for the first 5,000 units; first 10,000 electric LCVs (including three-wheelers), 5,000 personal vehicle cars and 500 electric buses.

To draw investment from companies in the green vehicle space, Telangana will offer 20 percent capital investment subsidy (maximum up to Rs 30 crore), discount of up to 25 percent in power tariffs (maximum up to Rs 5 crore), full reimbursement of SGST up to Rs 25 crore for seven years, interest subvention of 5.25 percent for five years capped at Rs 5 crore and other incentives like exemptions in stamp duty.

Telangana will also set up an energy park at Divitapally and plans to set up another EV park, besides using the existing electronic manufacturing clusters at Raviryal and Maheshwaram for facilitating the establishment of the new EV plants.

According to the Telangana government, around Rs 1,425 crore will be spent towards incentives and will make 775 acres of land available for EV manufacturers.

Commenting on the policy, Jitendra Shah, MD , Jitendra New EV tech said: “We thank the Telangana Government for the 100 percent exemption of road tax and registration fee on electric vehicles. It benefits the consumers directly and this will definitely support the growth of the electric vehicle industry. This move will also create a people's movement to opt for green mobility and contribute to environment. The Divitipally energy park will be of a great advantage for the manufacturing establishments and will contribute towards self-reliant India.”

READ MORE: ​Andhra Pradesh’s EV policy targets investment of Rs 30,000 crore by 2030

Maharashtra wants to be a major EV hub too, renews approach to be investors’ favourite

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