The state government of Karnataka announced last week that it was amending its electric vehicle and energy storage policy to bring more investment into the state’s e-mobility sector. “As decided at the May 27 state cabinet meeting, the Karnataka Electric Vehicle & Energy Storage policy of 2017 has been amended to give impetus to the electric mobility sector and attract more investments over the next 5 years,” said state industries department director R. Ramesh in the order.
The amendment is seen as an update to the original 2017 policy with provisions of 15% capital subsidy on the value of fixed assets over five annual payments for up to 50 acres of land procured for EV manufacturing or assembly. “With the increased focus on EV manufacturing, the incentives have been revised in line with investor expectations to accelerate the adoption of EV uptake in the state,” read the order.
The other key provision in the amendment is a production-linked subsidy scheme of 1 per cent on turnover for 5 years from the date of starting commercial operations.
The incentives will be applicable to large, mega, ultra, super-mega units involved in EV assembly or manufacturing, EV components or cell-making, battery pack or module production, and charging infrastructure equipment.
A technical committee will be constituted to define and certify EV components claiming incentives and concessions under the policy.
