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Haryana govt approves state EV policy, announces sops to manufacturers

The Haryana government on Monday approved the State Electric Vehicle (EV) Policy 2022 offering several financial incentives to EV manufacturers.

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Press Trust of India Chandigarh
The Haryana government on Monday approved the State Electric Vehicle (EV) Policy 2022 offering several financial incentives to EV manufacturers.
A decision in this regard was taken at a meeting of the state cabinet which met here under the chairmanship of Chief Minister Manohar Lal Khattar.
The EV policy offers various financial incentives to EV manufacturers by giving incentives on fixed capital investment (FCI), net SGST, stamp duty, employment generation, etc, an official statement said.
There is 100 per cent reimbursement of stamp duty along with exemption in electricity duty for a period of 20 years.
The SGST reimbursement shall be 50 per cent of the applicable net SGST for a period of 10 years. Companies manufacturing electric vehicles, components of electric vehicle, EV battery, charging infrastructure etc. shall be incentivized with capital subsidy.
Mega industry shall get capital subsidy at 20 per cent of FCI or Rs 20 crore whichever is lower; large industry will get subsidy of 10 per cent of FCI up to INR 10 crores, for medium industry 20 per cent of FCI upto Rs 50 lakh, for small industry 20 per cent of FCI up to Rs 40 lakh and for micro industry 25 per cent of FCI up to Rs 15 lakh.
Under this policy, units setting up batteries disposal units will get 15 per cent of FCI up to Rs 1 crore.
The policy provides for employment generation subsidy of Rs 48,000 per employee per annum for 10 years in lieu of Haryana domiciled manpower being employed with EV companies.
Efforts shall be made to convert 100 per cent of the bus fleet owned by Haryana State Transport Undertakings into electric buses or Fuel Cell Vehicles or other non- fossil-fuel-based technologies by 2030.
The cities of Gurugram & Faridabad will be declared as model Electric Mobility (EM) cities with phase-wise goals to adopt Electric Vehicles (EVs), charging infrastructure to achieve 100 percent e-mobility.
In addition to this, the Department of Town and Country Planning (TCP) shall mandatorily include the provisions for charging of electric vehicles in places such as Group Residential buildings, commercial buildings, institutional buildings, Malls, Metro Station etc., for enabling the overall ecosystem for uptake of Electric Vehicles.
The year 2022 will be declared as Year of the Electric Vehicles in Haryana.
The EV Policy aims to protect the environment, reduce carbon footprint, make Haryana an EV manufacturing hub, ensure skill development in EV field, encourage uptake of EV vehicles, provide EV charging infrastructure and encourage R&D in EV technology.
The policy provides one time support to facilitate conversion of existing manufacturers units completely into EV manufacturing of 25 per cent of book value up to Rs 2 crore for Micro, Small, Medium and Large units.
The cost of an electric vehicle is comparatively higher than conventional-fuel-based vehicles which is a major deterrent to buyers in switching to EV, said the statement.
The policy offers incentives to buyers that would reduce the effective upfront cost and motivate individuals to take up electric vehicles as their primary mode for transportation.
The policy will provide early bird direct benefit transfer up to Rs 10 lakh on purchase of Electric Vehicles or Hybrid electric Vehicles in the state. Buyers will also be eligible for relaxation in registration fee and discount on Motor Vehicle Tax.
The policy encourages R&D in educational or research institutes if they setup R&D centers.
The policy will promote Research & Development in the field of EVs by granting 50 per cent of project cost up to Rs 1 crore for developing new electric charging technology and up to Rs 5 crore for developing new electric vehicle technology.
Institutes conducting dedicated research on non-fossil-fuel based mobility solution will be provided with Rs 5 crore grant. One time subsidy of Rs 25 Lakh shall be extended to first 20 colleges/Industrial Training Institutes / polytechnics for setting up infrastructure related to R&D of EV.
Government organizations, PSUs, private companies shall be encouraged to set up Centre of Excellences (CoE) that shall be incentivized with a 50 per cent grant of project cost up to Rs 5 crore.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Jun 27 2022 | 8:19 PM IST

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