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Karnataka waives 100% stamp duty for EV production in State

Anil Urs Bengaluru | Updated on June 25, 2020 Published on June 25, 2020

Also simplify regulatory framework for new industrial investments

The Karnataka government has decided to waive 100 per cent stamp duty exemption for the production of electric vehicles (EV).

Karnataka’s Minister of Large and Medium Scale Industries, Jagadish Shettar, said that the Cabinet on Thursday took the decision with an aim to attract investments.

“The State has been supporting EV makers as Bengaluru has the highest concentration of registered vehicles and we don’t want to lose this opportunity,” he added.

In order to strengthen EV infrastructure, the State has sought ₹250-crore assistance under FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme to set up 1,000 public electric vehicle charging stations.

The State is planning to create an EV industry cluster for design and manufacture of vehicles as many automakers have been seeking information on manufacturing EV and state’s policy.

Industries Facilitation Act

In an another move, the Cabinet also cleared amendment to the Karnataka Industries (Facilitation) Act, 2002.

Shettar said that the amendment was passed to facilitate new investments and simplify the regulatory framework. With the implementation of the Act and subsequent amendments, the State introduced simplification of the regulations and reduction of the procedural requirements.

Listing out the key amendments, the Minister said the List of Approvals/ Clearances has been proposed to bring under the purview of Acknowledgement Certificate after obtaining the approval from the SHLCC/SLSWCC/DLSWCC, shall be on par with the clearances/approvals by the Department for an initial period of three years or the date of commercial operations, whichever is earlier for establishment of Manufacturing Industries/ Enterprises.

Also, the applicability of the Act has been amended and is extended to the specific acts / rules/ regulations under the State’s purview that are required for establishment of manufacturing industries/ enterprises in the State.

Insertions pertaining to the Common Application Form (CAF) along with the provisions for Self-Certifications have been inserted.

Published on June 25, 2020
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