Telangana approves EV incentives; Andhra eyeing Rs. 30k cr EV investments

Following the update on the Tamil Nadu EV park, positive developments for boosting EV manufacturing and sales in India have come to light from South India.

Telangana government has approved the state’s EV policy that is aimed at making the state an EV manufacturing hub and incentivizing the switch to EVs, reports It is targeting an investment of USD 3 billion or INR 23,000 crore by 2030 and aims to create 1.2 lakh direct and 2.5 lakh indirect employment opportunities. Incentives for EV adoption under this policy include 100% road tax and registration exemption for the first 2 lakh electric two-wheelers, first 5,000 electric cars and first 20,000 electric auto rickshaws.

Telegana government is encouraging residents even to retrofit their ICE vehicles with electric powertrains to make them EVs. Its EV policy will reimburse up to 15% of the cost involved with the upper limit set at INR 15,000 per vehicle for the first 5,000 three-wheelers, the first 10,000 units light commercial vehicles (including three-wheelers), 5,000 private cars and 500 buses.

20% capital investment subsidy (up to INR 30 crore), up to 25% discount in power tariffs (up to INR 5 crore), 100% reimbursement of state GST in 7 years (up to INR 25 crore), interest subvention of 5.25% for 5 years (up to INR 5 crore) and exemptions in stamp duty are some of the various incentives the Telgana EV policy includes for companies. The state government will spend around INR 1,425 crore towards incentives and put up 775 acres of land for electric vehicle manufacturing companies.

Telangana’s neighbouring state Andhra Pradesh also has an EV policy, which was announced in 2018. At the time of announcement, the policy said that the target was to attract a net investment of over INR 30,000 crore by 2023, which would potentially generate 60,000 employment opportunities. The broader goal was to have manufacturing facilities of high density energy storage of at least 10 GWh capacity by 2023 and 10 lakh EVs and 1 lakh slow and fast charging stations by 2024. In an interview recently, Mekapati Goutham Reddy, Minister of Industries, Commerce, IT & Skill Development, Andhra Pradesh, revealed that the state looks at getting the INR 30,000 crore by 2030 now.