comscore Haryana government approves EV policy with financial incentives for EV manufacturers

Haryana government approves State Electric Vehicle (EV) Policy 2022: Incentives, subsidy and more

The EV policy will provide early-bird direct benefit transfer up to Rs 10 lakh on the purchase of Electric Vehicles or Hybrid Electric Vehicles in the state.

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The government of Haryana has finally given a green signal to its  State Electric Vehicle (EV) Policy 2022. The EV policy offers incentives, reimbursements, subsidiaries and more benefits to EV manufacturers. The decision was taken in a meeting headed by Chief Minister Manohar Lal Khattar. Also Read - GT Force launches two new electric scooters at starting price of Rs 49,996: Check details

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. Also Read - EV battery pack shipments to reach 30 million in five years: Report

Haryana EV Policy: Benefits, reimbursements, subsidy

There is a 100 percent reimbursement of stamp duty along with an exemption in electricity duty for a period of 20 years. The SGST reimbursement shall be 50 percent of the applicable net SGST for a period of 10 years. Companies manufacturing electric vehicles, components of an electric vehicle, EV battery, charging infrastructure etc. Shall be incentivized with capital subsidy. Also Read - EV charging facilities are considerably lower than numbers of EVs in India: Report

Mega industry shall get capital subsidy at 20 percent of FCI or Rs 20 crore whichever is lower; large industry will get a subsidy of 10 percent of FCI up to Rs 10 crores, for medium industry 20 percent of FCI up to Rs 50 lakh, for small industry 20 percent of FCI up to Rs 40 lakh and for micro industry 25 percent of FCI up to Rs 15 lakh. Under this policy, units setting up batteries disposal units will get 15 percent of FCI up to Rs 1 crore.

The policy provides for an 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 percent 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 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 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 the conversion of existing manufacturer units completely into EV manufacturing of 25 percent 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 EVs, 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 of transportation.

EV Policy: Incentives

The policy will provide early-bird direct benefit transfer up to Rs 10 lakh on the purchase of Electric Vehicles or Hybrid Electric Vehicles in the state. Buyers will also be eligible for relaxation in the registration fee and a 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 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 be provided with Rs 5 crore grant. One-time subsidy of Rs 25 Lakh shall be extended to the first 20 colleges/Industrial Training Institutes/polytechnics for setting up infrastructure related to R&D of EV.

In addition to this, the government organizations, PSUs, private companies will be encouraged to set up a Centre of Excellences (CoE) that shall be incentivized with a 50 percent grant of the project cost up to Rs 5 crore.

(With inputs from PTI)

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  • Published Date: June 28, 2022 12:42 PM IST

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