Tamil Nadu's new EV policy offers various incentives for manufacturers and owners
The state of Tamil Nadu plans to promote the use of EVs by offering a wide range of incentives and subsidies to producers, buyers, and suppliers of charging infrastructure. The decision was made after the state witnessed investment interest of over Rs 24,000 crore during the previous five years in the EV industry.
Under the Tamil Nadu Electric Vehicles Policy 2023, incentives for manufacturers include advanced chemistry cell subsidies, investment- or turnover-based subsidies, and a 100 percent refund of state goods and services tax (SGST). For a period of five years, the state will completely exempt stamp duty, exempt tax on electricity purchased through its discom, and subsidize land costs.
The state has witnessed EV initiatives over the past five years that have the potential to create 48,000 jobs.
A sizable portion of Tamil Nadu's public transportation will eventually be an EV based. Through multilateral credit programs, state transport utilities will be urged to electrify their fleets. By 2030, the state may boost the proportion of electric buses to 30% of the fleet.
Road tax, registration costs, and permit payments will all be exempted or waived for EV users. Additionally, there are purchase incentives ranging from Rs 5,000 to Rs 10 lakh.
By allocating funds from the budget and considering the possibility of offering the infrastructure as a service to commercial operators, the state will construct infrastructure for bus charging. Private buses and the cars used by universities and schools will be urged to switch to electric vehicles. In addition, to gradually phase out internal combustion engine cars from their fleet, aggregators may be encouraged to collaborate with e-mobility providers and EV manufacturers.
The electricity rate for public charging stations will change in Tamil Nadu. It will designate six cities as EV cities: Salem, Tiruchirappalli, Madurai, and Tirunelveli. A Smart City Commissioner would serve as the nodal person for EV adoption in these locations.
