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TN ready with EV policy; may shower sops on component makers, end-users

TE Raja Simhan Chennai | Updated on August 23, 2019 Published on August 23, 2019

An EV policy by Tamil Nadu comes at a time when the auto industry is in the midst of a slump in demand for vehicles   -  istock.com/Lyudinka

May amend building rules to facilitate setting up of charging points; mulls better power rate

With the Centre pushing hard on electric vehicles (EV), the Tamil Nadu government is all set to come out with an EV policy soon. Apart from the usual incentives such as concession on road tax and vehicle registration charges for consumers, the policy will also help existing auto component players who have to migrate from internal combustion space to EV.

This, acccording to a senior government official, is required as the State has a strong auto component base and risks of job losses are high if this transition does not happen.

The State’s EV policy will have most of the features contained in the policies of other States, including Karnataka and Andhra Pradesh, with subsidies for capital, land and skill development.

In addition, Tamil Nadu may amend the common building rules to enable putting up charging points in commercial and large residential buildings. Further, fixing a better power tariff for electric vehicle users and concession in road tax are among the provisions in the draft policy that is being finalised.

An EV policy by Tamil Nadu comes at a time when the auto industry is in the midst of a slump in demand for vehicles. This, in turn, has led to plant shut-downs. The State is one of the largest manufacturers of automobiles, and big players such as Hyundai, Ford, Renault, Nissan and Ashok Leyland have manufacturing presence in the State. The policy should help existing automobile players consider EV segment, and also attract new players, the official said.

“We want to ensure that those who are likely to be left unemployed due to trouble in the automobile industry are absorbed by EV players,” the official said.

Under the Electric Mobility Policy 2018-23, Andhra Pradesh offers financial support to manufacturing firms, capital subsidy, 100 per cent reimbursement in stamp duty, tax incentives and skill development incentives.

The Karnataka Electric Vehicle & Energy Storage Policy-2017 offers subsidy to EV charging infrastructure providers such as charging stations, lithium ion battery switching/swapping stations; special package of incentive/concessions for mega and super mega EV companies/battery manufacturers and support for skill development.

New industrial policy

The State is coming out with a new industrial policy. The extant policy was announced during the VAT regime. Post GST introduction, there was no uniform policy and issues were dealt on case-to-case basis. “We hope to announce new industrial policy in 3-4 months,” the official said.

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Published on August 23, 2019
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