Highlights of Tamil Nadu EV Policy (2019) – Incentives, Subsidies, Exemptions of Electric Vehicle Policy

by Narasimhan Santhanam

This post is a part of EV Next’s EV Perspectives.

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Objectives

• Create robust infrastructure for electric vehicles including adequate power supply and network of charging points with favorable power tariff.
• Promote innovation in EV for automotive and shared mobility by providing the ecosystem and infrastructure to make Tamil Nadu, the EV Hub of India.
• Create a pool of skilled workforce for the EV industry through the technical institutions available in the State and create new jobs in the EV industry.
• Make Tamil Nadu the preferred destination for Electric Vehicles and component manufacturing units including battery and charging infrastructure.
• Create a conducive environment for Industry and Research Institutions to focus on cutting edge research in EV Technologies and reap the benefit from the outcome.
• Recycle and reuse used batteries and dispose of the rejected batteries in an environment-friendly manner to avoid pollution.

Incentives

Purchase of Electric Two Wheelers

• 100% road tax exemption will be provided till 30.12.2022.
•  A waiver on Registration charges/fees will be done as per the Government of India’s notification.

Three-wheelers & Auto-Rickshaws

• Auto Rickshaw permit fees will be waived for e-autos till 30.12.2022.
• 100% Road Tax exemption for e-autos till 30.12.2022.
• A waiver on Registration charges/fees will be done as per the Government of India’s notification.

Transport Vehicles such as Taxi, Tourist Cars, etc.

• Taxi permit fees will be waived for Electric Transport Vehicles till 30.12.2022.
•  100% Road Tax exemption for all Electric Transport Vehicles till 30.12.2022.
•  A waiver on Registration charges/ fees will be done as per the Government of India’s notification.
•  STUs will be provided with a subsidy to enable the purchase of EV buses.

Light Goods Carriers (including Three Wheelers)

•  There will be no requirement of a permit for the three-wheeler goods, e-carriers as well as electric Light Goods carrier.
• 100% Road Tax exemption for all e-carriers registered till 30.12.2022.
•  A waiver on Registration charges/fees will be done as per the Government of India’s notification.

Private Cars

• Private car owners shall be encouraged to switch over to electric cars.
• A waiver on Registration charges/fees will be done as per the Government of India’s notification.
•  Road tax exemption will be enhanced from 50% to 100% till 30.12.2022.

 Support for Charging Stations

• Adequate policy support will be provided for the development of charging infrastructure in cities and other places.
• The State will invest in setting up charging stations, with the active participation of public sector units including TANGEDCO and private players.
• The Government will develop schemes with an appropriate capital subsidy to enable private operators to set up public charging stations.
• Provision for charging stations will be made in commercial buildings such as hotels, shopping malls, cinema halls, apartments, etc.
• The Government will make an effort to set up 3*3 Grid charging stations in Chennai, Coimbatore, Trichy, Madurai, Salem, and Tirunelveli.
• one charging station will be set up at 25 km intervals on both sides of NHAI and State Highways.
• Charging points will be provided in the Government office parking lots in Chennai, Coimbatore, Madurai, Trichy, Salem, Tirunelveli and other places based on the requirements.
• TANGEDCO will invest in setting up both slow and fast charging networks in Government buildings and other public places.
• TANGEDCO will set up the charging infrastructure on its own or through private operators using appropriate Public-Private Partnership models.
• EV charging service providers can also set up their own renewable energy generating stations at their premises for charging Electric Vehicles.
• The tariff applicable for domestic consumption shall be applicable for Private Charging Station at home and classified as LT Tariff-IA230 Volt /415 Volt as per Tariff order T.P.No:1 of 2017 date 11.08.2017 (LT Tariff-IA). Typically, most of the slow charging or overnight charging for EV (2 Wheelers, 3 Wheelers or small 4 Wheelers) may be done from this domestic service connection.
•  Private charging in case of Offices, Malls, Gated Community, etc. can be done in the common supply with the LT Tariff-V of TANGEDCO.
•  Tariff for the supply of electricity to Public Charging Stations (PCS) will be determined by TNERC and it will be endeavored to fix the tariff as not more than the 15% above the average cost of supply.
• Supply of Renewable Energy will be ensured on a prefrontal basis at for EV charging stations with zero connection cost.

Reimbursement of SGST

100% of the SGST paid on the sale of EVs manufactured, sold and registered for use in the State will be reimbursed to the manufacturing companies. The reimbursement will be given for sales by the manufacturer’s effective till 31.12.2030. The reimbursement will be given up to 100% of the eligible investment.

Capital Subsidy

In the case of intermediate products used in the manufacture of EV and charging infrastructure, where SGST reimbursement is not applicable, a capital subsidy of 15% will be given on eligible investments over 10 years. The capital subsidy will be payable on eligible investments made in the State till 31.12.2025. The cost of the land shall not exceed 20% of the total eligible investments reckoned for the purpose of capital subsidy.

Electricity Tax Exemption

EV related and charging infrastructure manufacturing industries in the State will be provided a 100% exemption on electricity tax till 31.12.2025.

Stamp Duty Exemption

EV related and charging infrastructure manufacturing industries in the State that obtain land by sale or lease shall be entitled to 100% exemption on stamp duty for transactions till 31.12.2022.

Subsidy on Cost of Land

EV related and charging infrastructure manufacturing industries in the State that obtains land from SIPCOT, SIDCO or other Governmental agencies will be provided a 15% subsidy on the cost of land and will be provided a 50% subsidy if the investment is in Southern districts. This incentive is subject to the condition that the land cost is already not claimed as part of the capital subsidy. This subsidy will be available on allotments made till 31.12.2022.

Employment Incentive

EV related and charging infrastructure manufacturing units will be provided an employment incentive in the form of the reimbursement of the employer’s contribution to the EPF for all new jobs created till 31.12.2025. This incentive shall be paid for a period of one year and shall not exceed ₹48000 per employee.

Special Package for EV Battery Manufacturing

The Government will provide a higher capital subsidy of 20% of the eligible investment over 20 years in cases where manufacturing units are engaged in EV battery manufacturing. Such units shall also be provided land at 20% subsidy and at 50% subsidy in Southern districts. The special package will be applicable for investments made till 31.12.2025.

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