Home » Capitalizing the Power of EV- Check Out Full Summary of TN’s EV Policy

Capitalizing the Power of EV- Check Out Full Summary of TN’s EV Policy

Observing a low penetration of EVs in the state at the end of FAME Phase I, the state government issued the Tamil Nadu EV Policy on September 16, 2019

by Aishwarya Saxena

Tamil Nadu EV PolicyTracing the steps of the central government in its bid to push for the electrification of road vehicles, several Indian state governments have carved their path toward electric mobility.

Adapting the policy incentives and schemes offered by the central government according to its state requirements, the majority of state governments have formulated their personalized Electric Vehicle (EV) Policy centering around the development of the automotive industry in its respective states.

Ranked second in terms of having the highest vehicle population in the country, having 2.77 crore vehicles in 2019, Tamil Nadu has emerged as one of the most powerful contenders to compete in the automotive transition of states toward going electric.

The government of Tamil Nadu has always been at the forefront in leading several initiatives to reduce air pollution and congestion on roads.

Observing a low penetration of EVs in the state at the end of FAME Phase I, the state government issued the Tamil Nadu EV Policy on September 16, 2019, to build a comprehensive EV ecosystem in the State.

Summarizing Tamil Nadu EV Policy under notable key points, let’s uncover the vision of this state government in extra layers.


TNThe government of Tamil Nadu aims to attract a minimum investment funding of around ₹50,000 crores (₹500 billion) in EV manufacturing and develop a comprehensive EV ecosystem simultaneously.

Objective of Tamil Nadu EV Policy

  • The policy aims to develop a robust infrastructure for EVs including an adequate power supply and a network of charging points with favorable power tariffs.
  • Tamil Nadu EV Policy plans to become the EV hub of India while promoting innovation in launching next-generation EVs
  • Another step is to upskill its pool of workforce for the EV industry through the technical institutions available while creating new jobs in the EV industry.
  • The policy encourages manufacturing EV parts and components locally including battery and charging infrastructure.
  • Aims to create a conducive ecosystem for Industry and Research facilities to focus on detailed research in EV technologies.
  • Utilize and recycle used batteries and dispose of the old and defective ones in an environment-friendly manner.

Demand Side Offers 

PolicyIncentives Offered for Electric Two-Wheeler

  • The policy offers a 100% road tax exemption to be provided till 30.12.2022.
  • A complete waiver on EV registration charges as well as fees is offered as per the Government of India’s notification.

Incentives on the Electric Auto-Rickshaws

According to the Tamil Nadu EV Policy, the state offers Open Permit System that can be applied to approved e-Auto Permits. The offered incentives will include:

  • Permit fees for auto-rickshaws to be waived for e-autos till 30.12.2022.
  • Complete waiver of road tax issued for e-autos till 30.12.2022.
  • A full waiver on registration charges will be done.

Incentives for Transport Vehicles 

  • Considering the policy objectives, the state government offers,
  • A waiver on taxi permit fees for Electric Transport Vehicles till 30.12.2022.
  • 100% Road Tax waiver for all Electric Transport Vehicles till 30.12.2022.
  • Exempt Registration charges.
  • The subsidy is provided to STUs to enable the purchase of EV buses.

Incentives for Light Goods Carriers 

  • No need for a permit for the three-wheeler goods, e-carriers as well as electric Light Goods carriers.
  • Complete road tax exemption for all e-carriers registered till 30.12.2022.
  • Full exemption on Registration charges as per the Government of India’s notification.

Incentives for Private Cars 

  • Switching to private electric cars is encouraged.
  • Road tax exemption to be enhanced from 50% to 100% till 30.12.2022.

Supply Side Offers

ChargingIncentives for EV Charging Stations

The Tamil Nadu EV Policy has the vision to create a growing ecosystem for developing private and public charging infrastructure in the state. To make this a reality, the State Government plans to offer:

  • Investment funding support in setting up charging stations, with the active participation of public sector units that includes TANGEDCO and private players.
  • Innovative schemes with an appropriate capital subsidy to attract private operators to build public charging stations.
  • Special provisions for EV charging stations in commercial buildings like hotels, shopping malls, cinema halls, apartments, etc.
  • Under Tamil Nadu EV Policy, the state government plans to set up 3*3 Grid charging stations in Chennai, Coimbatore, Trichy, Madurai, Salem and Tirunelveli.
  • Aims to build one charging station at every 25 km intervals on both sides of NHAI and State Highways.

Other Incentives for EV Manufactures

  • The state government offers 100% reimbursement of the SGST paid on the sale of EVs manufactured, sold and registered for use in the State to the manufacturing companies till 30.12.2030.
  • If intermediate products are used in the manufacture of EV and charging infrastructure, wherein SGST reimbursement is not applicable, the state offers a capital subsidy of 15% will be given on eligible investments over 10 years.
  • 100% exemption offered on electricity tax till 31.12.2025 for EV-related and charging infrastructure manufacturing industries.
  • 100% exemption offered on stamp duty for transactions till 31.12.2022 for EV charging infrastructure manufacturing industries that obtain land by sale or lease.
  • Tamil Nadu EV Policy offers a 15% subsidy on the cost of land to EV-related and charging infrastructure manufacturing industries wherein, the companies can obtain land from SIPCOT, SIDCO or other Governmental agencies, and will gain a 50% subsidy if the investment is in Southern districts.
  • A higher capital subsidy of 20% is offered for eligible investment over 20 years in cases where manufacturing units are engaged in EV battery manufacturing.
  • Tamil Nadu government plans to develop exclusive EV parks in major auto manufacturing hubs to attract potential EV investments.
  • Under Tamil Nadu EV Policy, the state aims to promote the development of Logistic Parks and Free Trade Warehousing Zones for beer inventory management.
  • Also, the government encourages the development of plug-and-play manufacturing families where OEMs can advance production with minimal capital investment in land and building.

Research and Development & EV Start-Up Measures

  • To evolve a step further, Tamil Nadu EV Policy aims to partner with advanced technical Institutes and research establishments to establish Centres of Excellence for conducting market-focused research on Battery Technologies, EV Motors, Battery Management, and Controllers.
  • The state government plans to set up an EV Venture Capital Fund to offer financial support to EV start-ups to support the scale-up of their business.

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