This post is a part of EV Next’s EV Perspectives.
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- Make AP global hub for EV development and manufacturing
- Attract EV manufacturers and promote EV innovation and R&D through grants and venture funds, industrial park development, skilled workforce
- Promote EV usage in cities
- Enable investment in charging/battery swapping infrastructure and hydrogen generation and fuelling station development
- Build next-generation transportation infrastructure using Vehicle to Everything (V2X) platforms
Electric Vehicles: Attract combined investments of over INR 30,000 Crore in the next 5 years across the electric mobility ecosystem with an employment potential for 60,000 people. Target to have 10 lakh EVs, combined across all segments of vehicles, by 2024.
Public Transport: All forms of government vehicles, including vehicles under government corporations, boards, and government ambulances, etc. will be converted to electric vehicles by 2024.
Target to convert 100% of Andhra Pradesh State Road Transport Corporation (APSRTC) bus fleet of over 11,000 buses into electric buses (BEVs/FCEVs) by 2029, with the first phase of 100% conversion of bus fleet in top 4 cities (Vijayawada, Visakhapatnam, Amaravati, and Tirupati – declared as Model Electric Mobility (EM) cities with phase-wise goals to adopt Electric Vehicles, charging and hydrogen refueling infrastructure and new EV enabling building codes by 2024
- Private Transport: Phase out all fossil fuel-based commercial fleets and logistics vehicles in top 4 cities by 2024 and all cities by 2030
- Charging Station: Target to have 1,00,000 slow and fast charging stations by 2024
Exemption of registration charges and road tax on sale/lease of Electric Vehicles until 2024.
Reimbursement of the Net State Goods and Services Tax (SGST) for services rendered, accrued to the State, for firms involved in services such as leasing of the fleet of Electric Vehicles, owning or operating EV fleets and providing charging/battery swapping/Hydrogen Stations for recharging/refueling Electric Vehicles, until 2024.
Financial Incentives for Private/ Government including Undertakings, Corporations, Organizations, Urban and Rural Bodies for Charging Stations and Hydrogen generation and refuelling infrastructure:
- Direct-Current (DC) Chargers (100V and above): Capital Subsidy of 25% of the value of the charging station equipment/machinery for first 100 stations up to a maximum subsidy of INR 10,00,000.
- Direct-Current (DC)Chargers (Below 100V): Capital Subsidy of 25% of the value of the charging station equipment/machinery for first 300 charging stations up to a maximum subsidy of INR 30,000.
- Capital subsidy of 25% of Fixed Capital Investment (for eligible assets excluding cost of battery inventory) up to a maximum subsidy of INR 10 lakhs for swapping stations for the first 50 stations.
- 100% net State Goods and Services Tax (SGST), accrued to the State, as reimbursement for purchase of fast chargers (DC chargers of capacity 100V and above).
- 100% net State Goods and Services Tax (SGST), accrued to the State, as reimbursement for purchase of advanced batteries for Battery Electric Vehicles swapping.
- Capital subsidy of 25% of the Fixed Capital Investment (FCI), for hydrogen generation and fuelling plants, with a maximum subsidy of INR 10 Crore/unit for the first 10 units.
- 25% of Fixed Capital Investment (FCI)) up to a maximum of INR 15 lakhs for Micro industries.
- 20% of Fixed Capital Investment (FCI) up to a maximum of INR 40 lakhs for Small and INR 50 lakhs for Medium Industries.
- 10% of Fixed Capital Investment (FCI) up to a maximum of INR 10 Crores for first two units, under Large industries, in each segment of Electric Vehicle (2 wheelers, 3 wheelers, 4 wheelers, buses), battery and charging equipment, hydrogen storage and fuelling equipment manufacturing.
- 10% of Fixed Capital Investment (FCI) up to a maximum of INR 20 Crores for first two units, under Mega category, in each segment of Electric Vehicle (2 wheelers, 3 wheelers, 4 wheelers,
- buses), battery and charging equipment, hydrogen storage and fuelling equipment manufacturing.
- For specific clean production measures, as certified by Andhra Pradesh Pollution Control Board (APPCB), 35% subsidy on cost of plant and machinery for Micro, Small and Medium Enterprises (MSME) up to a maximum of INR 35 lakhs and 10% subsidy on cost of plant and machinery for Large projects up to a maximum of INR 35 lakhs.
- 25% subsidy, for Micro Small and Medium Enterprises (MSMEs) and Large projects, for sustainable green measures on total Fixed Capital Investment (FCI) of the project (excluding cost of land, land development, preliminary and pre- operative expenses and consultancy fees) with a ceiling of INR 50 crore.
- Special incentives will be given according to their need for Mega, Mega Integrated Automobile Projects and Ultra-Mega Battery Manufacturing Plants on a case to case basis.
- 100% of stamp duty and transfer duty paid by the industry on purchase or lease of land meant for industrial use will be reimbursed.
- 100% of stamp duty for lease of land/shed/buildings, mortgages and hypothecation will be reimbursed.
External Infrastructure Subsidy: All external infrastructure such as power supply, water supply, roads will be provided at the doorstep of the industrial unit, charging and battery swapping stations at 50% of the cost of the infrastructure with an overall limit of INR 2 crores per project.
Land: In case of Mega Integrated Projects, Government will offer land to dependent ancillary units at the same rates as offered to respective Original Equipment Manufacturer (OEM) (wherever Government allocates land to OEM) up to a maximum of 50% of the land allocated to OEM.
- The Government of Andhra Pradesh will provide fixed power cost reimbursement @ Rs. 1.00 per unit for a period of five (5) years from the date of commencement of commercial production.
- The electricity duty will be reimbursed for a period of five (5) years.
- A dedicated line along with special discount for night time/non-peak time usage will be offered for testing of BEV batteries based on requirements.
- Water Supply will be made at 50% of the price of existing industrial supply tariff for the initial 3 years from the date of commencement of commercial production.
- The Government of Andhra Pradesh will provide water supply and also facilitate/support setup of water treatment plants in/around major auto hubs in order to meet this requirement wherever necessary.
- In order to provide quality water, the Government of Andhra Pradesh will reimburse 25% of the cost of water treatment plant wherever necessary, with a limit of INR 2 crores on this subsidy.
- 100% net SGST accrued to the State will be reimbursed for a period of five (5) years for micro and small, seven (7) years for medium, ten (10) years for large industries. This reimbursement will be limited to 100% of capex or for the period Stated, whichever is earlier.
- Skill Development Incentives:
- Stipend of INR 10,000 per employee per year to a maximum of first 50 employees for a single company for Micro, Small, Medium and Large firms.
- Marketing Incentives:
- 50% of cost of participation with a maximum amount of INR 5 lakhs to be reimbursed to a maximum of 10 MSME units per year for participating in International Trade Fairs.
Industrial Parks and Clusters
- The Government of Andhra Pradesh will allocate 500 to 1,000 acres of land for developing EV Parks with plug and play internal infrastructure, common facilities and necessary external infrastructure.
- Developers of Auto Clusters and Automotive Suppliers Manufacturing Centres (ASMC) specific to Electric Vehicles shall be provided financial assistance of 50% of fixed capital investments in building and common infrastructure, up to a maximum of INR 20 crore.
A research grant of INR 500 Cr will fund the most innovative solutions in the mobility space. This fund will support Centre for Advanced Automotive Research (Research Labs working on battery, EV, EV component research etc.), Centre for Advancement of Smart Mobility (incubators, start-ups, prototyping centers etc. are covered under this), Research Scholars and testing and quality labs as needed.
Recycling: Battery recycling plants will be incentivized to mine for compounds from used batteries.
Other Significant Features
- Smart Mobility Corporation: A Corporation will be set up to coordinate all necessary activities for promoting futuristic needs of transportation
- A separate EV tariff category will be created.
- Time of day sale of power to Battery Electric Vehicles will be considered to provide cheaper power during non-peak hours.
- Andhra Pradesh Electricity Regulatory Commission (APERC) will issue regulations, defining tariff and related terms and conditions, for the vehicle to grid (V2G) sale of power to meet the requirements of real-time and ancillary services for DISCOM. Sale of power from the battery swapping stations to the grid will also be considered as V2G sale of power.
- Third party EV charging infrastructure providers will be allowed to procure power from DISCOM at regulator determined tariff and will be allowed to provide the charging service to Electric Vehicles.
- Third party EV charging service providers will be allowed to procure power through open access route from renewable energy sources irrespective of the size of the demand. APERC will determine the appropriate process and charges related to open access.
- Third party EV charging service providers can also set up their own renewable energy generating stations at their premises for charging Electric Vehicles only.
- Cloud charging features will be encouraged in order to have all metering and transactions done digitally with payment apps, Near Field Communication (NFC) enabled devices, Radio Frequency Identification (RFID) tags etc. while keeping it flexible and customer friendly.
- Battery Recycling: Battery recycling plants will be incentivized to mine for compounds from used batteries.
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