To promote manufacturing of e - vehicles: CM unveils e - vehicle policy 2019

CHENNAI: In a major multi-faceted approach to build, nurture and sustain an eco-system of manufacture and increased use of electric vehicles in the state, Chief Minister Edappadi K. Palaniswami on Monday released the ‘Tamil Nadu electric vehicle policy- 2019)' at the secretariat here. The policy envisages a special package of tax incentives and infrastructure sops to promote new industrial investments “in the manufacture of electric vehicles, their auto components, particularly EV batteries, and manufacture of charging infrastructure.” Units engaged in EV should invest above Rs 50 crore and create at least 50 direct jobs to be considered eligible for the special incentive package, the policy said, adding, all investments from April 1, 2018 will be considered eligible for the incentives. A 15 per cent capital subsidy on eligible investments for ten years, made in the state till December 31, 2025, full exemption of 'electricity tax' for EV related and charging manufacturing industries in the state till that date, 100 per cent stamp duty for transactions till December 31, 2022, for such units and a 15 per cent subsidy on the cost of land obtained from government agencies including Sidco and Sipcot. The policy also includes incentives for conversion of all auto-rickshaws in six major cities of Chennai, Coimbatore, Tiruchy, Madurai, Salem and Tirunelveli to EVs' within a span of ten years, to be extended to other places in a phased manner, conversion of 21,000 government transport buses into EVs' at the rate of five per cent every year, introduction of 1,000 EV buses every year, and private bus operators will also be encouraged to transit to EV buses. Further, purchase of new electric two-wheelers will be exempted from road tax till December 30, 2022 and registration charges waived as per Government of India's notification, the policy added.