Karnataka To Provide 15 Percent Subsidy To EV Investors Following Change In Policy

0
554

The government will also give a production linked incentive of 1 per cent of turnover for a period of five years

In a bid to attract more investment into the state, the Karnataka Cabinet has approved two key amendments to the Karnataka Electric Vehicle and Energy Storage Policy, deciding to give a 15 per cent capital subsidy to investors in the electric vehicle sector. 

Law Minister Basavaraj Bommai said that the government will give a 15 per cent capital subsidy to investors in the electric vehicle (EV) sector on the value of fixed assets over five equal annual payments, with the maximum land covered under this incentive being 50 acres.

Additionally, the government will also give a production linked incentive of 1 per cent of turnover for a period of five years from the first year of commercial operations for large, mega, ultra, super mega EV assembly and manufacturing units.

“A technical committee will be constituted to define/certify EV components including EV lithium-ion battery suppliers to EV manufacturing enterprises etc. claiming incentives and concessions under the new policy,” the government said.

The amendments also include a clause to encourage in-plant training provided by the EV manufacturers in the state by offering a stipend of up to 50% of the cost of training subject to a limit of ₹10,000 per month per trainee.

The government is also looking to create an EV cluster in Ramanagar district, near Bengaluru.

LEAVE A REPLY

Please enter your comment!
Please enter your name here