- Tamil Nadu to become a preferred destination for EVs and component manufacturing units, including battery and charging infrastructure
- The policy has a vision to attract ₹50,000 crore in investments and create 1.5 lakh new jobs
- TN govt will set up exclusive EV parks in major auto-manufacturing hubs
- The policy will offer investors a 50 per cent subsidy on the land cost
Tamil Nadu Chief Minister Edappadi K Palaniswami on Monday unveiled the State’s electric-vehicle policy, which has set out a vision to attract ₹50,000 crore in investments and create 1.5 lakh new jobs.
The ‘Tamil Nadu Electric Vehicle Policy 2019’ has crafted out a strategy to make Tamil Nadu the preferred destination for EVs and component manufacturing units, including battery and charging infrastructure.
Under the new EV policy, the major cost saving as part of the on-road price package will be on insurance, as the State government offers 100 per cent road tax exemption and there will be waivers on registration fees under the Central government’s policy.
Pool of opportunities
The support measures announced in the EV policy include 100 per cent road tax exemption for all types of EVs, capital subsidies, reimbursement of State GST, subsidy on land cost and special incentives for job-creating EV projects.
The new EV policy has also offered to provide incentives under a special package for investments above ₹50 crore and create at least 50 direct jobs in the form of new projects or expansion projects. Investments made from April 1, 2018 will be considered for this.
Elaborating on the unique features in the policy, N Muruganandam, Principal Secretary to Government, Industries Department, Government of Tamil Nadu, told BusinessLine that the State government will set up exclusive EV parks in major auto-manufacturing hubs and also in areas that have the potential to attract EV investments. These EV parks will enable the creation of a vendor ecosystem that will serve OEMs.
Tamil Nadu government has attempted to put southern districts also on the investment map. The new electric policy offers to provide investors a 50 per cent subsidy on the land cost if the investment is made to obtain land from government agencies in southern districts, while in other districts it is just 15 per cent.