The Tamil Nadu government has announced the electric vehicle (EV) policy 2023, in an attempt to boost the EV industry in the state. The move is targeted to lure new investments of Rs 50,000 crore and generate 1.50 lakh jobs. Chief Minister M K Stalin unveiled the new policy on Tuesday.
“To support this goal, Tamil Nadu aims to electrify the vehicular fleets operating in the State by leveraging its vibrant automotive ecosystem comprising original equipment manufacturers, auto component ancillaries, highly skilled workforce, and robust R&D capabilities,” the policy document said.
Tamil Nadu has emerged as a leading EV manufacturing hub in the last five years with new entrants including Ather Electric and Ola Electric having set up their production facilities.
According to the policy, the state government has signed memorandum of understanding (MoU) with companies committing investments of nearly Rs 24,000 crore and employment potential of 48,000 jobs in the EV value chain. “Tamil Nadu has a vision of attracting Rs 50,000 crore worth of investments in EV manufacturing, creation of 1.5 lakh new jobs, and development of a robust EV ecosystem in the State,” reads the document.
To encourage the adoption of electric vehicles in the state, the government has laid out a plan with benefits like a 100 per cent road tax exemption. “100 per cent road tax exemption will be provided till December 31, 2025 for the EV battery operated vehicles — two wheelers, private cars, three-seater auto-rickshaws, transport vehicles, light goods carriers.” The new policy will be valid for a period of five years.
Tamil Nadu also plans to develop industry-academia linkages to create a skilled workforce pool for EVs besides promoting Chennai, Coimbatore, Tiruchirappalli, Madurai, Salem, and Tirunelveli as pilot cities for implementing ‘e-mobility solutions’. The new policy further talks about the electrification of commercial and public transport fleets. State Transport Undertaking operated buses would be electrified through a phased augmentation and replacement plan.
The state government several incentives to companies engaged in manufacturing EVs including, ‘reimbursement of SGST’, turnover-based subsidy, and capital subsidy. The state government would also offer 100 per cent exemption on stamp duty on the purchase or lease of land obtained from the government for electric vehicle projects undertaken by companies.
“The state shall endeavour to increase the share of electric buses to 30 per cent of the fleet by 2030”, according to the policy.
