Tamil Nadu has a reputation for being one of the most advanced states in India. It is preferred mostly by investors. It is the second-largest state economy in the country and contributes to 8.4% of India’s GDP. It is an economic hub and an industrial powerhouse of the nation with a very strong and diverse industrial base. The State Government, in its Objectives of the Tamil Nadu Electric Vehicle Policy, is to further enhance the position of Tamil Nadu as the most preferred State for manufacturing, with a reputation for efficiency and competitiveness, is guided by the objective of having an environmentally sustainable growth following the Sustainable Development Goals framework provided by the United Nations.

The broad objectives of the Tamil Nadu Electric Vehicle Policy 

This Policy visions a special package of tax incentives and infrastructure sops to promote new industrial investments in the manufacture of electric vehicles. The Government of Tamil Nadu envisages attracting ₹50,000 crores (₹500 billion) of investment in EV manufacturing and creating a wonderful EV ecosystem. Such investment is thought to create 1.5 lakh new jobs. The broad objectives of the Tamil Nadu Electric Vehicle Policy are as follows: 

• To create a robust infrastructure for electric vehicles, including adequate power supply and a network of charging points with favourable power tariffs. 
• Promote innovation in EVs for automove and shared mobility by providing the ecosystem and infrastructure to make Tamil Nadu the nation’s economic hub. 
• Creating a skilled workforce for the Electric Vehicle industry through the institutions in the State and creating new employment opportunities in the EV industry. 
• Make Tamil Nadu the most preferred destination for EV and component manufacturing units, including battery and charging infrastructure. 
• Creation of a conducive environment for Industry and Research Institutions to focus on lung edge research in Electric Vehicle Technologies and reap the benefit from the outcome. 
• It manages to recycle and reuse used batteries and dispose of the rejected batteries in an environment-friendly manner to avoid pollution.  

Key Features of the Policy

Some key features of the Policy are as follows:

• The Policy will assist and attract Rs.50,000 crore investments for EV manufacturing and ensure the build-up of 1.5 lakhs new employment openings.
• It is proposed that all Electric Vehicles such as two-wheelers and three-wheelers, cars, buses and commercial vehicles be provided with 100% road tax exemption for the private and commercial electric vehicles till the beginning of 2023.
• The particular stimulus will be granted to the EVs and their component manufacturers, who have invested a minimum amount of Rs.50 crores, creating employment opportunities for at least 50 citizens.
• 100% compensation of the State GST (SGST) for Electric Vehicles made and sold in Tamil Nadu until 2030.
• 15% and 20% are capital subsidies for investments in EV manufacturing and battery production, respectively, until 2025.
• Exclusive Electric Vehicle parks in the major auto manufacturing hubs.
• A 15% grant shall be provided for cost borne on land/property for an EV or production of part in the State’s industrial parks. The investors shall get 50% subsidies until 2022 for the projects started in the south.
• 100% free from the stamp duty will be provided for the purchase of land to establish EV and EV part units
• Establishing EV or parts production units in Tamil Nadu will also get a 100% privilege from electricity cost.
• Public-private partnerships are encouraged to establish charging for the infrastructure, or the Government might establish its projects.
• Certain revisions in the laws/provisions of building and construction to incorporate charging infrastructure in the planning stage.

Recent Changes in the Tamil Nadu Electric Vehicle Policy

The State currently has about 14,000 electric vehicles (EVs), which is expected to increase. It is likely in the two-wheeler segment, especially since there is little price parity. Tamil Nadu, which had announced its e-vehicle Policy in 2019, is currently updating it. “The government is actively in favor of considering support for charging infrastructure, especially with all the vehicles being sold,” an official source explained. The government at present grants 100% tax exemption for all battery-operated vehicles (electric vehicles).

Conclusion

The Tamil Nadu State Government released its draft Electric Vehicle Policy 2019 on September 16th 2019. The objectives of the Tamil Nadu Electric Vehicle Policy are to complement the National Scheme for Faster Adoption and Manufacturing of (Hybrid) Electric Vehicles in India (FAME India) and to address state-specific needs. The key features of the policy and the recent changes in the Tamil Nadu electric vehicle policy highlight the important aspects of the policy. The Indian Electric Vehicle industry has welcomed the Policy as it announces a slew of benefits to make Tamil Nadu a hub for Electric Vehicle and related manufacturing.