BENGALURU: With electric vehicles (EV) considered a huge investment potential, several states are competing to bring out attractive schemes for companies to invest in. According to an analysis released by the World Economic Forum, the International Organisation for Public-Private Cooperation and Ola Mobility Institute, 10 states, including Karnataka, and Union Territories are trying to build momentum for EV usage across three sectors -- manufacturing, infrastructure and services.
According to the report, Karnataka is planning to provide incentives and concessions for ultra mega and super mega EV enterprises, along with incentives such as interest-free loans on net SGST for EV manufacturing enterprises to encourage local manufacturing. The state will reimburse land conversion fees used to set up EV/component manufacturing units.
The policy also highlights the state’s interest in battery storage, and plans to create a secondary market for batteries. Karnataka plans to develop charging infrastructure as a commercially viable business venture that attracts private investment. Karnataka will also provide an investment subsidy for setting up the first 100 charging stations, besides setting up a venture capital fund to encourage e-mobility startups.
Experts said that despite the EV culture starting up in the state, specifically in Bengaluru, much earlier than in other states, there is a lack of specifics in framing the policy.
“Bengaluru is the startup capital and the EV industry is quite busy here. For example, startups such as Bounce and Yulu do not have basic policy specifics for parking. These companies came up without any policy intervention,” urban expert AM Devendranath told TNIE.
In terms of global competition, Devendranath said that policies were not enough when countries such as Vietnam were providing their land for free, while Karnataka was providing the same with concessions and subsidies to set up manufacturing plants. However, the state has no control over this domain, since the order has to come from the Centre.
“Based on the analysis, Delhi is in a better position, followed by Bengaluru. However, the state needs to encourage startups and amend its transport policies,” says R Dhanendran, another urban expert. Joint Commissioner of Transport (Bangalore Rural) Mallikarjun says an amendment is expected, which is inclusive of cab aggregators and new startups. “There will be a meeting on policy next week and amendments to the Act will be looked into,” he said.