Karnataka amends electric vehicle policy to offer more incentives

The order also said a technical committee will be set up to define and certify EV components seeking incentives and concessions under the policy. 
For representational purposes
For representational purposes

BENGALURU: In a bid to provide the much needed impetus to the electric mobility sector, the State Government on Tuesday amended the Karnataka Electric Vehicle and Energy Storage Policy, 2017, by offering subsidies and incentives to component manufacturers. The move aims to make Karnataka more competitive in comparison to other states. 

Manufacturers of cells, batteries and other components for electric vehicles stand to benefit from the move. The Cabinet had approved the decision on May 4. According to the Government Order, issued on June 1  by the Commerce and Industries Department, the big move is the 15 per cent subsidy to be offered on capital expenditure on land value (fixed value assets) up to a maximum of 50 acres. This will be paid over five years in equal annual payments. As per the existing policy, an investment subsidy of 20 per cent is given, but it will not exceed Rs 20 crore. 

The other big move is to boost production of EV components in the state. “Production linked subsidy of 1 per cent will be given on the company’s turnover for a period of five years beginning from the first year of commercial operations, subject to a maximum cap of 50 per cent of VFA,” the order said. 

There is no specific subsidy as of now. The only incentive offered is an interest-free loan from banks on the net GST paid to the State Government for a period between 8 and 13 years. The order also said a technical committee will be set up to define and certify EV components seeking incentives and concessions under the policy. 

Chairman of the Energy Committee of the Federation of Karnataka Chamber of Commerce and Industry, Ramesh Shivanna, and promoter of Bengaluru-based Sadhbavana Energy, told TNIE, “The move will attract more investments to the state.”

Related Stories

No stories found.
The New Indian Express
www.newindianexpress.com