Highlights of Telangana EV Policy (2017) – Incentives, Subsidies, Exemptions of Electric Vehicle Policy

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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Objectives

• To attract investments worth US$ 3 billion and create employment for 50,000 persons by 2022 through EV manufacturing and charging infrastructure development
• Make Telangana EV hub of India and also preferred destination for EV manufacturing
• Develop a proving ground for viable Business models through accelerated demand for EVs
• Create conducive environment for promoting R&D in EV and Autonomous/Connected Mobility
• Create skilled workforce for EV industry

Electric Vehicles

100% migration to Electric Vehicles by 2030 supported by an enabling infrastructure and local manufacturing base for Electric Vehicles and related components

Public Transport

Tourist places (national parks, ecological sites) in the state to switch to all EVs by 2025 for transportation in and around their premises

Buses

• Telangana State Transport Corporation to set a target of 100% electric buses by 2030 for intra-city, intercity and interstate transport (key milestones – 25% by 2022, 50% by 2025 and 100% by 2030)
• Battery operated shuttle services at all Hyderabad Metro Stations for last mile connectivity
• Airport flight shuttles and PUSHPAK buses to be transitioned to EV on priority

3Ws

• Time bound mandate for all auto rickshaws within Greater Hyderabad Municipal Corporation (GHMC) to switch to EV, followed by other cities
• Government Vehicles: Government vehicles (owned and contractual) to switch to all electric by 2025, in phased manner

Private Transport

Educational Institutions Buses and Hospital Fleets: Educational institutions and hospitals for a 25% switch by 2022 (100% by 2030) of their Buses/ Derivatives/Passenger vehicles fleet to Electric Vehicles

Corporate Buses: Corporates with annual turnover of Rs 100+ Crore operating within GHMC limits to compulsorily migrate 25% of their employee commuting fleet to EVs by 2022 and 100% by 2030. The same rule will be extended to corporate entities operating in other cities in the state.

 Taxis

• Cab operators/ aggregators to switch to full EV fleet in phased manner

Goods Transport

• Freight and logistics firms to use Electric Vehicles in a phased manner
• Intra-city goods delivery services (sub 2T category) to switch to EVs only by 2030 in a phased manner
• All app based and e-commerce delivery services to migrate 25% of their vehicles fleet to EVs by 2022 and 100% by 2030
• Battery operated application vehicles will be encouraged in government departments such as Municipal Corporations, Postal Services etc. across Telangana State

Charging Station

• Charging/ swapping station will be provided at every 50 kms within state boundaries on highway to cities like Bengaluru, Mumbai and Chennai, followed by other national/state highways
• Hyderabad Metro Rail (HMR) stations and Telangana State Road Transport Corporation (TSRTC) Bus depots (across state) will provide reserved parking and free charging stations for 2Ws in their parking zones to encourage EVs for last mile commute.
• Charging points for personal vehicles of Government employees would be provided at Government office parking lots, starting with Hyderabad, followed by other cities in the state
• Provision for charging spots will be made mandatory in all commercial buildings such as hotels, shopping malls and technology parks

Incentives

1. Demand Incentives

• Exemption of registration charges on personal vehicles purchased till 2025
• Interest Free loans up to 50% of the cost to all state government employees for purchase of EVs
• All existing apartment associations with 200+ families will be encouraged to provide charging points in parking lots and will be supported by capital subsidy of up to 25%, capped at 5 lakhs
• Existing Residential Townships with 1000+ families will be encouraged to develop charging stations, supported by capital subsidy of up to 25%, capped at 10 lakhs for each station with 4 fast chargers

2. Supply Incentives

• Local manufacturing and R&D are key to reaching price/performance parity between Electric and ICE Vehicles. In cognizance of this fact, support will be extended to the EV industry through policy interventions and incentives with focus on research, innovation and skilling. The Government will provide benefits/incentives, depending upon the scale of investment as per the categories defined in MSMED Act 2006 and Telangana Industrial Policy framework 2014. Investments beyond 200 Crores will be treated as Mega Projects and will be offered tailor made benefits
• Land belonging to Government Agencies within Hyderabad and other cities will be offered to private players on long term lease at subsidized rates and 2-year moratorium period on rental payment for setting up charging/swapping stations, through a transparent bidding process.
• 75% of SGST paid on the fast charging equipment / machinery procured by any entity for setting up private/public/institutional charging stations will be reimbursed.
• All benefits, incentives and subsidies offered to industries in Telangana through various policies, schemes, etc. will also apply to EV Automotive Industries in Telangana

3. Other Taxes and Tolls

• Road tax exemption for all electric vehicles till 2025, expected year of price parity with ICE vehicles

4. Non-fiscal incentives

• Preferential Allotment to be made to Make in Telangana Vehicles for Government Orders
• Extension of transport department retro fitment rule for existing vehicles to cover Electric kits for passenger vehicles, Auto Rickshaws and e-Rickshaws
• Permission for Automotive Research Association of India (ARAI) certified E- rickshaws in fringe areas at the periphery of GHMC limits in predefined zones and routes. Similar permission will be granted in other cities across the state
• Contract carriage permits for private operators with EV fleet operations
• Allow use of CSR funds for electrification of employee commuting fleets
• Only Electric Vehicles will be allowed in high traffic density areas, Heritage zones, IT SEZs and similar EV Zones in Hyderabad by 2025. Same will be applied to other cities in Telangana State.
• Free Parking in public parking places and Toll exemption on State Highways for EVs till 2025

Other Significance

• EV Cluster: A mega Automotive Park with global standard infrastructure is currently at planning stage and the development work is expected to commence by mid-2018. A designated EV cluster spread over 1500- 2000 acres catering to EV/EV component manufacturing for two wheelers, Cars, Buses andTrucks will be integrated with the Automotive Park plan.
• Research and Development: Smart Mobility Technologies Cluster, Mobility Engineering Cluster, Centre of Excellences, EV Research Hub, Telangana EV Innovation Fund, EV Testing Facility, T-Works Automotive Prototyping centre
• Skilling: TASK (Telangana Academy of Skill and Knowledge), Short term (4- 6 months) finishing course post completion of graduate Engineering courses, PG Courses on EVs
• Single-Window System: Telangana implemented TSi-PASS in 2015, an Industrial Project approval system based on self-certification. It also protects Investors interest with Right to Single Window Clearance and provision for penal action on the officers who delay the applications
• Exit Mechanism: Considering the high volatility and the risk associated with maturing of EV Technologies, Government of Telangana in consultation with Government of India will put in place a mechanism for reasonable exit strategy for the EV enterprises
• Labour Environment: The EV industry will be declared a ‘Public Utility’ under the Industrial Disputes Act, 1947 in order to prevent flash strikes
• Telangana State EV Advisory Council

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

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