The Haryana government on Monday approved the State Electric Vehicle (EV) Policy 2022, offering several financial incentives to EV manufacturers. This decision was taken at a state cabinet meeting, which met here under Chief Minister Manohar Lal Khattar.
An official statement said that the EV policy offers various financial incentives to EV manufacturers by giving incentives on fixed capital investment (FCI), net SGST, stamp duty, and employment generation.
There is a 100 percent stamp duty reimbursement and an exemption in electricity duty for 20 years.
The SGST reimbursement shall be 50 percent of the applicable net SGST for ten years. Companies manufacturing electric vehicles, components, EV batteries, and charging infrastructure shall be incentivized with capital subsidies.
The mega industry shall get capital subsidy at 20 percent of FCI or Rs. 20 crore, whichever is lower; the large sector will support 10 percent of FCI up to Rs. 10 crores, and for medium industry, 20 percent of FCI upto Rs. 50 lakh, for smenterprisestry, 20 percent of FCI up to Rs. 40 lacks, and for micro sector, 25 percent of FCI up to Rs. 15 lacks.
Under this policy, units setting up batteries disposal units will get 15 percent of FCI up to Rs. 1 crore.
The policy provides an employment generation subsidy of Rs. 48,000 per employee annually for ten years instead of the Haryana-domiciled workforce employed with EV companies.
Efforts shall be made to convert 100 percent of the bus fleet owned by Haryana State Transport Undertakings into electric buses, 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) and charging infrastructure to achieve 100 percent e-mobility.
In addition, the Department of Town and Country Planning (TCP) shall mandatorily include the provisions for charging electric vehicles in places such as Group Residential buildings, commercial buildings, institutional buildings, Malls, and Metro Stations, to enable the overall ecosystem for uptake of Electric Vehicles.
2022 will be declared the ‘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 the EV field, encourage uptake of EV vehicles, provide EV charging infrastructure, and promote R&D in EV technology.
The policy provides one-time support to facilitate the conversion of existing manufacturers’ units completely into EV manufacturing of 25 percent of book value up to Rs. 2 crores for Micro, Small, Medium, and Large units.
The statement states that the cost of an electric vehicle is comparatively higher than conventional-fuel-based vehicles, which is a major deterrent to buyers switching to EVs.
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 of transportation.
The policy will provide early bird direct benefit transfer of up to Rs. 10 lacks on purchasing Electric Vehicles or Hybrid Electric Vehicles in the state. Buyers will also be eligible for relaxation in the registration fee and discount on Motor Vehicle Tax.
The policy encourages R&D in educational or research institutes if they set up R&D centers.
The policy will promote Research & Development in EVs by granting 50 percent of the 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 solutions will receiveana Rs. 5 crore grant. One time subsidy of Rs. 25 lacks shall be extended to the first 20 colleges/Industrial Training Institutes/polytechnics for setting up infrastructure related to the R&D of EVs.
Government organizations, PSUs, and private companies shall be encouraged to set a Centre of Excellence (CoE) that shall be incentivized with a 50 percent grant of project cost up to Rs. 5 crores.
