Policy

Telangana woos electric vehicle firms with new policy

V Rishi Kumar Hyderabad | Updated on October 30, 2020 Published on October 30, 2020

Invites them to make the State, especially Hyderabad, their hub

The Telangana government has announced a new electric vehicle (EV) and energy storage policy packing a slew of incentives for manufacture, use and purchase of EVs.

Launching the Telangana Electric Vehicle & Energy Storage Policy 2020, State Industries Minister KT Rama Rao, here today sought to woo domestic and global players in the EV and energy storage segments to make Telangana, especially Hyderabad, a manufacturing hub and platform for innovation.

The much-awaited policy, launched virtually, with participation from various industry players, offers exemption from road tax and registration fee to a select number of EVs across various segments.

Also read: Mahindra bets big on last-mile connectivity and shared mobility for EVs

These exemptions are being offered to the first set of two lakh two-wheelers, 20,000 three-seater autorickshaws, 5,000 commercial passenger vehicles, 5,000 passenger vehicles, and 500 electric buses and tractors. These exemptions will be available for vehicles purchased and registered in Telangana. It also extends similar benefits to 10,000 light commercial vehicles, including goods carriers, three-wheelers and electric tractors.

The policy framework, which has been prepared after extensive consultations with various stakeholders, seeks to align with the Central Government’s efforts to provide a push for electric mobility and the overall directional initiative of the Atmanirbhar Bharat initiative, which lays emphasis on local manufacturing.

The policy, passed by the State Cabinet in August, seeks to transform the State, especially Hyderabad, into a hub for EVs by extending capital subsidies, state GST reimbursements and power tariff subsidies.

Also read: EV penetration in India could be delayed due to Covid-19, passenger vehicles to be worst affected: Ind-Ra

The Minister said, “The State will dovetail the policy with the Centre’s various schemes and policy initiatives with regard to encouragement of electric vehicles and the energy storage segment. The overarching focus is on early adoption of electric vehicles with emphasis on local manufacturing and sourcing.”

As part of the EV push, efforts will be made to promote last and first mile connectivity for public transport, gradual shift of public transport buses from internal combustion engines to EVs and encourage general use of electric mobility.

Rao said that the State Government’s TS-iPass initiative, along with various efforts towards Ease of Doing Business have attracted huge investments, and these coupled with the new electric vehicle policy will attract new investments into the State.

In order to encourage local manufacturing, at least six industrial manufacturing areas with land bank have been identified which will enable companies like Olectra and Mytrah to set up their facilities.

Referring to the M&M manufacturing facility near Zaheerabad here, Rao said that the area around the plant is ideally suited to be transformed into a manufacturing hub for EVs, encouraging both OEMs and their supply chain vendors.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on October 30, 2020
This article is closed for comments.
Please Email the Editor