An employee of Mahindra Electric walks past a row of battery operated e20plus cars parked at the company's manufacturing facility in the outskirts of Bangalore, India, Thursday, Nov. 15, 2018. Mahindra Electric, a part of the US$ 20.7 billion Mahindra Group, inaugurated company's new Electric Technology Manufacturing Hub on Thursday. (AP Photo/Aijaz Rahi)
Popular electronic vehicle maker, Tesla recently announced its Indian debut by registering an Indian entity, Tesla India Motors and Energy Private Limited. Tesla Founder Elon Musk had indicated the company’s plans of entering the Indian market in 2021.
With Tesla’s entry, Karnataka has reinforced its position as one of the foremost states bringing in electronic vehicles to the country. Ola Electric, Mahindra Electric and smart scooter company Ather Electrical have all set up their R&D centres and firms in the state.
PM Narendra Modi had set an ambitious target of ensuring that 30 per cent of all vehicles sold in India are electric by 2030. As per estimates, India is expected to become the fourth largest market for EVs by 2040.
While FM Nirmala Sitharaman has not announced any new policy for the EV sector in the recently announced Union Budget 2021, EVs will be exempted from the proposed Green tax to be levied on petrol and diesel vehicles for registration renewal after 15 years. The Scrappage policy announced by the Finance Ministry, which will pave the way for newer automobiles, is also being seen as a positive sign for EVs.
States across the country are doing their bit to push EV adoption and attract investments for EV infrastructure. Let’s take a look at what states are doing to attract EVs.
Bihar (draft): The state’s EV policy, which was drafted in 2019, aims at converting all manual peddle rickshaws to e-rickshaws by 2022. It also aims at creating fast charging/swapping stations at intervals of 50 km on state and national highways, attracting ground investments of Rs 2,500 crore and creating employment opportunities for 10,000 people.
The policy plans to provide subsidies of INR 12,000 to the end-user. Special incentives of Rs 10,000 will be given on electric rickshaws using a Lithium-ion battery instead of the conventional lead-acid battery. EVs will also be eligible for exemption from road tax and registration fees.
Delhi (approved): Delhi’s EV policy is focused on improving the NCT’s extremely poor air quality. The policy aims to ensure that EVs account for 25 per cent of total vehicle registrations in the city by 2024. Owners of the first 1000 e-cars to be registered in New Delhi will get a purchase incentive pf Rs 10,000 per kWh of battery capacity.
The Delhi Government also aims to convert 50 per cent of buses to electric by 2024 and increase this to 100 per cent by 2030. The policy offers subsidies of up to Rs 30,000 on two-wheelers and up to Rs 1.5 lakhs for cars. The Government also plans to offer subsidies worth 25 per cent of the cost (up to Rs 5,500) for Ecycles, along with an additional offer of Rs 2,000 for the first 10,000 e-cycles.
Andhra Pradesh (approved): The state’s EV policy plans to bring in 10 lakh EVs by 2024. This would include converting all the 11,000 buses under the Andhra Pradesh State Road Transport Corporation (APSTRC) fleet into EVs by 2029.
It aims to set up 1 lakh slow and fast charging stations by 2024, attract investments worth Rs 30,000 crores, while generating 60,000 jobs in the electronic vehicle sector. Plans are also on to set up a Centre for Advanced Automotive Research, in collaboration with IISER, IITs and ISRO for research in chemical, mechanical, electrical and electronics engineering to drive the policy.
Gujarat (draft): Gujarat’s EV policy aims to establish a conducive environment to encourage manufacturers and investors to develop the EV market. The Government plans to have 1 lakh EVs on the road by 2022. This includes 80,000 two-wheelers, 14,000 three-wheelers, 1,500 buses and other transport vehicles and 4,500 four-wheelers, which include commercial taxis and cargo.
Financial subsidies include 100 per cent exemption from the registration fee, 50 per cent exemption from motor vehicle tax, along with a 100 per cent exemption from electricity duty for EV charging stations.
Kerala (approved): The state has rolled out a rather ambitious plan of reaching 10 lakh electronic vehicles by 2022. This would include 3,000 buses, 2 lakh two-wheelers, 50,000 three-wheelers, 1,000 goods carriers and 100 ferries.
The Government has also shortlisted tourist spots such as Bekal, Munnar and Kovalam, along with the Secretariat, Infopark and Technopark in Thiruvananthapuram for the introduction of e-scooters and e-bikes. The state witnessed a 64 per cent rise in EV registration in 2020 (1,321 EVs), compared to 2019 (468 EVs).
Himachal Pradesh (draft): The state’s draft EV policy aims to achieve 100 per cent transition to EVs by 2030. The policy proposes a business model for private players to set up charging stations and infrastructure for EVs in the state, along with EV charging point provisions in commercial buildings.
The policy also encourages the use of hybrid EVs by Government entities during the transition period, along with creating newer employment opportunities.
Karnataka (approved): The state was the first to roll out an EV policy in 2017, with the intention of making Bengaluru the EV capital of the country. The Karnataka Electric Vehicle and Energy Storage Policy looks at achieving 100 per cent electric mobility by 2030, in certain segments such as auto-rickshaws, cab aggregators, corporate fleets and school buses/vans.
The Karnataka Government has also recommended offering subsidies worth 20 per cent or Rs 10 lakhs, whichever is greater, to individuals looking to set up charging stations. Currently, there are only around 10,000 electric vehicles in Bengaluru.
Madhya Pradesh (approved): The state’s policy focuses on ensuring EVs contribute to 25 per cent of all new public transport vehicles by 2026. People buying electric vehicles for commercial purposes would be assured a free parking spot in a Government parking lot for a period of five years. While this excludes buses, it extends to autorickshaws, two-wheelers and taxis.
To ensure adequate charging infrastructure, setting up of public charging stations (PCS) will be de-licensed. This will allow any individual or company to set up public charging stations, provided they meet the regulations. Charging fees will also be lower, at Rs 6/unit at public charging points. The MP Government’s EV policy also waives off-road tax/registration fee for the initial five years.
Maharashtra (approved): The state announced its EV policy in 2018, however its adoption has been slow. With the 18 cities in the state heavily polluted, the Government is planning to encourage the use of EVs for public and private use.
The policy aims to increase the number of EVs registered in the state to 5 lacs and create an investment of Rs 25,000 crores in EV, EV manufacturing and component manufacturing, and charging infrastructure equipment manufacturing in the state.
The policy exempts EVs from road tax and registration fees for a period of five years. It also aims to provide incentives for micro, small and medium enterprises, as well as large manufacturing units.
Punjab (draft): Under the Punjab Electric Vehicles Policy, 2019, the Government aims to have 25 per cent of annual vehicle registrations as EVs by the last year of the five year policy. It also aims to increase the share of electric two-wheelers to reach 25 per cent of new sales over the five year period.
The policy provides for 100 per cent waiver on motor vehicle tax for private EVs for a period of five years. For commercial vehicles, the exemption will extend to registration as well as permit fee for five years. The waiver will be applicable for a period of ten years for vehicles manufactured in Punjab.
Tamil Nadu (approved): A major automobile manufacturing hub, Tamil Nadu has waived off motor vehicle tax for battery-operated vehicles for a period of two years from November 1, 2020, to December 31, 2022. Tamil Nadu is targeting investments of about Rs 50,000 crore in the EV segment and is also planning to set up the country’s first park catering for electronic vehicle production.
Under its EV policy, Tamil Nadu plans to electrify 5 per cent of buses by 2030 and convert all auto-rickshaws in six major cities to electric within 10 years. It also plans to set up a business incubation service to encourage EV startups.
Uttar Pradesh (approved): The state’s EV policy aims to roll out nearly 10 lakh EVs across all segments by 2024. Plans of phasing out all commercial fleet and logistics vehicles and attaining 50 per cent EV mobility across goods transportation in ten EV cities by 2024, and all other cities by 2030, are also on.
The state government has proposed setting up a centre for excellence for research and development, testing and certification to help the EV industry. The state also plans to launch 1,000 electric buses by 2030.
Telangana (approved): Under its EV policy, Telangana is offering 100 per cent exemption of road tax and registration fee for the first two lakh electric two-wheelers purchased and registered within the state. The first 5,000 units of four-wheelers will get 100 per cent exemptions from road tax and registration fees.
The policy will give EV manufacturers preferential market access to set up their plants in the state. The government is also setting up an energy park in the state, along with an EV park. Currently, electric bus manufacturer Olectra Greentech and electric three-wheeler manufacturer Gayam Motor Works have their manufacturing centres in the state.
However, much more needs to be done in terms of bringing about infrastructure such as charging stations, along with policy changes such as reduction of GST on batteries, to make EVs more affordable.
