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Highlights of Karnataka EV Policy (2017-2018) – Incentives, Subsidies, Exemptions of Electric Vehicle Policy


Last Updated: November 2020 by Narasimhan Santhanam



This posevnext-logo-v-smallt is a part of EV Next’s EV Perspectives.

EV Nexta division of EAI, is a leading market intelligence & strategic consulting firm for the Indian e-mobility sector.


 

Introduction

Karnataka was one of the first states to adopt an EV policy based on the idea of  making Bangalore the “ Electric Vehicle Capital of India”. Enacted in September 2017, the policy would be scheduled for updates every 5 years.

Objective of Policy

  • To maintain the lead share of Karnataka as a preferred destination for attracting investments in manufacture of electric vehicle
  • To attract investment of Rs. 31,000 crores and create employment opportunity to 55,000 persons both from supply and demand side
  • To create a conductive environment for transition to electric vehicle environment from ICE
  • To provide opportunities for developing R & D in electric mobility

Policy Measures

  1. Special Incentives for EV Manufacturing
  • EV manufacturing park
  • Make industrial land available, preferably in cluster so that EV manufacturing zone can be created
  1. Migrating to EV Environment
  • EV in transport and Non Transport vehicles
  • EV in Private transport
  • For short distance, auto rickshaws and two wheelers will be encouraged
  • EV in Public Transport
  • EV in Goods transport
  1. Facilitating EV Battery and Charging Equipment Manufacturing
  • Karnataka Udyoga mitra will facilitate, speed – truck and enable a combined online application in order to get the clearances from environment, Labour and other departments
  1. Supporting for Charging Infrastructure
  • Government of Karnataka will encourage private players to set up automotive research association of India /BIS
  • A Special Purpose Vehicle (SPV) involving BBMP, BMTC, BESCOM, KREDL, KIADDB and other related agencies will be mooted for creation of charging infrastructure in Bangalore
  1. Support for Research and Development
  • Startup incubation centre will be set up to facilitate developments in EV mobility
  • A venture capital fund will be set up for research in EV mobility
  1. Support for Skill Development
  • A short term course on electric mobility
  1. Incentives and Concessions
  2. Validity of the Policy
  • The Karnataka Electric Vehicle & Energy Storage Policy and package of Incentives and concessions shall come into effect from the date of approval / issue of Government order and will be valid for a period of five years (from 2017-2022) or till a new policy is announced

Incentives & Concessions

  1. Incentives and concession to EV & its components manufacturing enterprises
  • Micro, small & Medium Enterprises
    • Exemption from Stamp duty
    • Concessional Registration Charges
    • Reimbursement of land conversion Fee
    • Subsidy for setting up Effluent Treatment Plant
    • Exemption from tax on Electricity Tariff
  1. Incentives and concessions to large, mega, ultra mega and super mega enterprises
  • Exemption from stamp Duty
  • Concessional Registration Charges
  • Reimbursement of land conversion Fee
  • Subsidy for setting up ETPs
  • Interest free loan on NET SGST to large, Mega, ultra mega and super mega Enterprises
  1. Incentives and concessions to EV battery manufacturing / assembly enterprises investment promotion subsidy
  2. Exemption from stamp duty for all EV cell manufacturing, EV battery pack / module manufacturing & assembly enterprises
  3. Concessional registration charges for all EV cell manufacturing EV battery pack/module manufacturing & assembly enterprises
  4. Reimbursement of land conversion fee for all EV cell manufacturing, EV battery pack/ module manufacturing & assembly enterprises
  5. Exemption from electricity duty for EV cell manufacturing, EV battery pack / module manufacturing & assembly enterprises
  6. Interest free loan on NET SGST to large, mega ultra-mega and super mega – all EV cell manufacturing EV battery pack / module manufacturing & assembly enterprises
  7. Incentives and concessions to EV charging / swapping infrastructure equipment manufacturing enterprises
  8. Incentives and concessions to EV in non-transport and transport vehicle service providers for EV mobility 

Read EV Next posts on electric vehicle policies for these states: Andhra Pradesh|Delhi|Kerala|Tamil Nadu|Maharashtra|Telangana|Uttar Pradesh|Uttrakhand|                                        


evnext-logo-v-smallKnow more on how EV Next can assist your business in your strategy for the e-mobility and electric vehicles sectors, Here

Wish to know everything about India’s EV market from one place? Check out the India EV Expert Guide, an 800 page comprehensive guide to the Indian EV marketHere


 

See also the blog posts:

Comprehensive Inputs on Indian EV Ecosystem

Check out the following sections for comprehensive inputs on Indian EV ecosystem (click on each section for more details)


Categories: E-mobility, Electric Vehicles, EV Policies & Regulations, India State EV Policies, Policies and Regulations

Author - Narasimhan Santhanam


Thank you for reading this post – hope it was helpful. You can connect with me at narsi@eai.in. My detailed profile here and my LinkedIn profile here

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