India’s 2030 vision for electrification presented by NITI Aayog serves as a much-needed impetus to promote electric mobility in the country.
Realizing this vision can be a great market opportunity for the EV sector that will benefit India’s economy in multiple ways.
Apart from the central government’s hyped scheme FAME II, many state governments have come forward with their own set of Electric Vehicle (EV) policies that will offer exclusive incentives and subsidies to their residents.
Quick on the uptake, the Karnataka government was among one of the first few states that came forward with its Karnataka Electric Vehicle (EV) Policy & EV Tenders at an earlier date.
Charging forward with a fresh take on policy offers, Karnataka Electric Vehicle (EV) Policy & EV Tenders laid out its vision and objective in the following manner:
Aims to make Karnataka a preferred investment destination for manufacturing EVs and their parts by utilizing advantages and the existing environment for sustainable growth of the electric mobility sector.
- To attract investments of INR 31,000 crores
- Generate employment opportunities for 55, 000 persons from both the demand and supply side
- To provide opportunities in R&D development in Electric Mobility.
- Create a conducive environment for the transition to Electric Vehicles from IC engines.
Karnataka Electric Vehicle (EV) Policy & EV Tenders Measures
Promote EV Manufacturing
- To attract investment for EV Manufacturing Park or EV zones with comprehensive facilities
- Encourage the establishment of testing tracks and facilities for EVs to promote the growth of the start-up environment
- Make industrial land available so that EV manufacturing zones can be established.
Measures for Transport Vehicles
To promote the adaptability of electric vehicles, the Government of Karnataka has exempted from payment of taxes on electric transport vehicles under the Karnataka Motor Vehicles Taxation Act 1957.
Measures for Public EV Transport
- BMTC, KSRTC, NWKSRTC and NEKRTC will launch 1,000 EV buses during the policy period.
- BMTC launched Vayu Vajra services on select routes to Kempegowda International Airport in 2018.
EV in Private Transport
- To encourage the adaptability of electric vehicles in the state, the following measures were taken,
- Promote existing auto rickshaws towards retrofitting and move towards electric mobility.
- To achieve the target of 100% electric mobility, some segments will be promoted towards full electrification, that includes,
- School Buses
- Cab Aggregators
- Corporate Fleets
- Auto Rickshaws
- Encourage short-distance shared mobility and electric two-wheeler, and taxis are promoted.
Measures for EV in Goods Transport
E-commerce and delivery companies in Bengaluru will be promoted to replace the fleet of two and three-wheeler in a phased manner and has quite a few EV Tenders.
EV Charging Infrastructure Under Karnataka Electric Vehicle (EV) Policy
The government of Karnataka will launch charging infrastructure as a commercially viable business venture to attract private investment.
Karnataka Electric Vehicle (EV) Policy & EV Tenders enable adoption of BIS standards easier for charging equipment, mandating charging infrastructure in public buildings, amending building bylaws for the provision of charging outlets, regular electricity supply, etc.
In order to support charging infrastructure and EV Tenders in the state the following measures will be taken:
- Govt. in partnership with Industry & Academia will come out with standards for battery, charging infrastructure & swapping mechanisms, etc to build an interoperable network.
- Karnataka Electric Vehicle (EV) Policy aims to promote private players to set up the Automotive Research Association of India (ARAI)-compliant/BIS Standard, EV charging Systems/ infrastructure.
- To identify potential places and provide land belonging to Government agencies, on a long lease basis for setting up EV fast-charging stations and battery swapping infrastructure.
- Special Purpose Vehicle (SPV) that involves BBMP, BMTC, BESCOM, KREDL, KIADB, and other related agencies will be promoted for the creation of Charging infrastructure in Bengaluru.
- Offer incentives by way of investment subsidy for setting up the first lot of 100 fast-charging stations.
- To provide the required electricity supply from the grid and examine special tariffs at commercially viable rates for EV charging stations.
- ESCOMs will examine bringing in amendments to their policies and allowing the re-sale of power to encourage the setting up of charging stations.
- Karnataka Electric Vehicle (EV) Policy tends to promote EV mobility on highways between prominent cities with a heavy density of vehicles like the Bengaluru-Mysur highway and others, a fast-charging station or battery swapping infrastructure will be provided every 50 kilometers.
- ESCOMS will examine permitting the use of solar energy / renewable energy at Mw connection cost and offer zero wheeling charges by EV charging stations.
- Existing apartment associations will be encouraged to provide a special dedicated plug/charging station facilitating the adoption of EVs by their members.
- BMRCL / BMTC / KSRTC / BBMP will provide charging stations for two-wheelers at their parking stations to encourage EVs for Mst mile commute.
Incentives and Subsidies to Electric Vehicle & Components Manufacturing Enterprises
According to the Karnataka Electric Vehicle (EV) Policy & EV Tenders, manufacturing Enterprises will be eligible for these incentives and concessions.
- Micro Enterprises- 25% of the Value of Fixed Assets (VFA) (max. Rs. 15.00 lakh)
- Small Enterprises- 20% of the Value of Fixed Assets (VFA) (max. Rs.40.00 lakh)
- Medium Enterprises- Manufacturing concession up to Rs.50.00 lakhs
- Exemption from Stamp Duty – Karnataka Electric Vehicle (EV) Policy & EV Tenders offers 100% exemption from Stamp duty to be paid in respect of loan agreements, credit deeds, mortgage and hyphenation deeds executed for availing loans from State Government and/or State Financial Corporation, National Level Financial Institutions, Commercial Banks, RRBs, Co-operative Banks, KVIB/KVIC, Karnataka State SC/ST Development Corporation, Karnataka State Minority Development Corporation and other institutions.
- Concession on Registration Charges
- Reimbursement of Land Conversion Fee
- Subsidy offered for Setting up Effluent Treatment Plant (ETP)
- Exemption from Tax on Electricity Tariff 10096
Concessions Offered to Large, Mega, Ultra Mega, and Super Mega Enterprises
- 100% exemption from Stamp duty
- For all loan documents, lease deeds, and sale deeds as specified above, the registration charges shall be at a concessional rate of Rs.1.00 per Rs.1,000.
- Reimbursement of 100% of the land conversion fee for converting the land from agriculture use to industrial use through significant EV Tenders.
- Subsidy offered for setting up ETPs with One-time capital subsidy up to 50% of the cost of Effluent Treatment Plants (ETPs).
Incentives Offered to EV Battery Manufacturing Units
To manufacture and assemble major components required for EVs such as lithium-ion batteries, Karnataka Electric Vehicle (EV) Policy & EV Tenders will offer incentives as per the policy subject and have EV Tenders to the approval of the Technical Committee which is similar to the concessions given to Electric Vehicle & Components Manufacturing Enterprises.
Promote Research and Development Ecosystem in State
To encourage a conducive environment for researching electric mobility segments and developing next-generation electric-based models, Karnataka Electric Vehicle (EV) Policy took some measures to create an R&D ecosystem in the state.
- Karnataka Government plans to establish working groups for developing necessary technologies from the conceptual state to the market stage.
- The State government will be commissioning the “Karnataka Electric Mobility Research and Innovation Centre” and will extend support to make it a world-class research hub.
- Venture Capital Find will be established for research on Electric Vehicles.
- Start-ups will be promoted to develop innovative business models