Telangana announces 10-year EV policy, aims to attract $4 billion in investments
Telangana has announced a multi-year electric vehicle (EV) policy that aims at developing the state as a global centre for cutting-edge research & innovation in the field of EVs. Telengana is among the youngest states in India and the government is trying hard to improve business and investment options in the state by offering additional facilities.
The 10-year EV policy, called Telangana Electric Vehicle & Energy Storage Policy, aims to make the state a hub for EVs, energy storage systems, and emerging technologies like autonomous vehicles. The effort is expected to generate employment for as many as 120,000 people through manufacturing activities, shared mobility, and development of charging infrastructure.
To achieve the aforementioned aim, the policymakers have set a target to attract private investments worth US$4 billion.
After unveiling the policy, Minister KT Rama Rao said, “Telangana has come out with an extremely comprehensive policy. We have ensured that the energy storage policy is clubbed with the EV policy because these two are tight-knit ideas which need to work cohesively. We have taken a pragmatic approach while designing this policy in consultation with industry leaders.”
Various incentives will be provided to attract investors and develop required infrastructure. Incentives will be provided for the manufacturing of EVs, energy storage systems and other related components. The state has also made arrangements for capital and power tariff subsidies alongside SGST reimbursements.
The policy notifies 100 per cent exemption of road tax and registration fee for the first 200,000 electric two-wheelers and first 20,000 electric three-wheelers that would be bought and registered within the state. In addition, a retro-fitment incentive has been provided at 15 per cent of the retro-fitment cost capped at INR 15,000 per vehicle for the first five thousand retrofit 3-seater auto rickshaws.
An eye-catching 100% per cent exemption has been announced on road tax and registration fee for electric tractors that would be bought and registered in the state in accordance with existing rules and guidelines issued by the Department of Transport. The government will also encourage State Transport Units to buy environment-friendly electric buses.
Any investment of more than Rs 2,000 crore (USD 280 million) in plant and machinery or generating employment for more than one thousand people shall be considered as mega project. Technical and research institutions will be welcomed to set up their centers of excellence in the state for conducting market-focused research on EVs and related technologies.