Tamil Nadu EV Policy 2023: Benefits & Incentives
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Tamil Nadu EV Policy :
The southern Indian state of Tamil Nadu is set to encourage the adoption of electric vehicles (EVs) through a comprehensive set of incentives and subsidies for manufacturers, customers, and charging infrastructure providers. The move comes after the state saw an investment interest of around Rs 24,000 crore ($3.2 billion) in the EV sector over the past five years, with several projects offering a potential of 48,000 jobs.
The Tamil Nadu Electric Vehicle Policy 2023 includes measures such as 100% reimbursement on state goods and services tax (SGST), investment- or turnover-based subsidies, and advanced chemistry cell subsidies for EV manufacturers.
Tamil Nadu EV Policy: Exemptions
The state will offer tax exemption, stamp duty exemption, and land cost subsidy for five years on power purchased from its discoms. Also, the state will provide various incentives for people using EVs, including discounts and waivers on road tax, registration charges, and permit fees, as well as purchase incentives ranging from Rs 5,000 to Rs 10 lakh.
Tamil Nadu EV Policy Incentives: Electric Bus
Tamil Nadu plans to gradually transition a significant share of its public transport fleet to electric vehicles, a government statement said. State transport utilities are encouraged to electrify their fleets through loan programs from multilateral agencies. The state wants to increase the number of electric buses in its fleet to 30% by 2030. Private buses and vehicles of schools and colleges will also be encouraged to switch to EVs.
Tamil Nadu EV Policy: Charging Incentives
Under FAME II, a total of 281 charging stations have been sanctioned for Tamil Nadu, which will act as an impetus for charging infrastructure development. To facilitate EV adoption, Tamil Nadu will develop charging infrastructure through budgetary allocations and explore the option of providing infrastructure for private operators. The government plans to use these measures to increase charging infrastructure.
The policy also includes employment incentives for EV projects, with reimbursement of employer contributions to the EPF for all new jobs created during the policy period. Companies that set up public charging stations in Tamil Nadu will be eligible for a subsidy of 25% of the cost involved in the purchase of machinery and equipment during the policy period. The first 50 private charging stations will also be eligible for a 25% capital subsidy.
Tamil Nadu EV Policy: Steps toward greener
Tamil Nadu’s Electric Vehicle Policy 2023 is a significant step to encourage the adoption of EVs in the state. Extensive incentives and subsidies for manufacturers, consumers, and charging infrastructure providers will help make EVs more affordable and accessible while facilitating the development of charging infrastructure and measures to transition a significant portion of the state’s public transportation fleet to EVs. Adopt them. It is hoped that other states in India will follow Tamil Nadu’s example and take similar steps toward a greener, cleaner, and more sustainable future.