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

Last Updated: November 2020 by Narasimhan Santhanam

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

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

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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

2. 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

3. 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

4. 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

5. 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

6. Support for Skill Development

• A short term course on electric mobility

7. Incentives and Concessions
8. 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

2. 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

3. Incentives and concessions to EV battery manufacturing / assembly enterprises investment promotion subsidy
4. Exemption from stamp duty for all EV cell manufacturing, EV battery pack / module manufacturing & assembly enterprises
5. Concessional registration charges for all EV cell manufacturing EV battery pack/module manufacturing & assembly enterprises
6. Reimbursement of land conversion fee for all EV cell manufacturing, EV battery pack/ module manufacturing & assembly enterprises
7. Exemption from electricity duty for EV cell manufacturing, EV battery pack / module manufacturing & assembly enterprises
8. 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
9. Incentives and concessions to EV charging / swapping infrastructure equipment manufacturing enterprises
10. 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|                                        

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See also the blog posts:

• Highlights of Kerala EV Policy (2017-2018) – Incentives, Subsidies, Exemptions of Electric Vehicle Policy
• Highlights of Maharashtra EV Policy (2018) – Incentives, Subsidies, Exemptions of Electric Vehicle Policy
• Highlights of Uttar Pradesh EV Policy 2018 – Incentives, Subsidies, Exemptions of UP Electric Vehicle Policy