The Tamil Nadu government released its electric vehicle (EV) policy 2023 on Tuesday, aiming to attract Rs 50,000 crore in investments and create 1.50 lakh employment in an effort to grow the EV industry. In the presence of government officials, Chief Minister M K Stalin publicly announced the new policy at the Secretariat here. The strategy was created with the government anticipating battery-powered vehicles to play a critical role in electrifying last-mile connectivity.
“To accomplish this goal, Tamil Nadu intends to electrify the State’s vehicular fleets by leveraging its thriving automotive ecosystem, which includes original equipment manufacturers, auto component ancillaries, a highly skilled workforce, and robust R&D capabilities,” according to the policy statement.
Over the last five years, the state has developed into a leading EV manufacturing hub, with new entrants such as Ather Electric and Ola Electric establishing manufacturing facilities. According to the strategy, Tamil Nadu has inked memorandums of understanding with companies committing approximately Rs 24,000 crore in investments and 48,000 job opportunities in the EV value chain. The state government is aware of the sectors difficulties and intends to solve them by interventions defined out in this policy across the supply, demand, and ecological segments.
“Tamil Nadu has a vision of attracting Rs 50,000 crore in EV manufacturing investments, the creation of 1.5 lakh new jobs, and the establishment of a viable EV ecosystem in the State,” according to the document. The new policy will be in effect for five years. It further stated that the government would encourage the use of electric vehicles in the state by waiving all road taxes, among other things. “EV battery operated vehicles — two wheelers, private cars, three-seater auto-rickshaws, transport vehicles, and light freight carriers will be exempt from paying road taxes until December 31, 2025.”
In addition to pushing Chennai, Coimbatore, Tiruchirappalli, Madurai, Salem, and Tirunelveli as pilot cities for implementing ‘e-mobility solutions,’ the state government plans to promote industry-academia links to generate a qualified manpower pool for EVs. The initiative also intends to encourage the electrification of commercial and public transportation fleets. It provides many incentives to enterprises that manufacture EVs, including SGST refund, a turnover-based subsidy, and capital subsidies.
The company’s electric car initiatives would be eligible for a full exemption from stamp duty on the purchase or lease of government-owned land. State Transport Undertaking-operated buses, which account for a significant portion of public transportation in India, will be electrified through a phased augmentation and replacement programme. “The state shall endeavour to expand the share of electric buses in the fleet to 30% by 2030,” the policy stated.
The state EV policy will be adopted on November 2, 2020, for a two-year period. This regulation exempted electric two-wheelers from paying road taxes and registering them. The subsidy exemption for electric vehicles ranged from 50 to 100%.
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