As decided at the state cabinet meeting on May 27, the 2017 Karnataka Electric Vehicle and Energy Storage Policy has been amended to give a boost to the electric mobility sector and attract more ‘investments over the next 5 years,’ said state industries department director R. Ramesh in the order issued Tuesday.
Since the incentives provided under the 2017 policy were lower than those offered by other states, the amendment will allow a 15% capital grant on the value of fixed assets over 5 equal annual payments for 50 acres of land for companies assembling or manufacturing electric vehicles.
“With the increased focus on electric vehicle manufacturing, the incentives have been revised in line with investor expectations to accelerate the adoption of electric vehicle adoption in the state,” Ramesh said in the ordinance.
The amended policy also provides a 1 percent production subsidy on sales for 5 years, starting from the first year of commercial operation.
The incentives will apply to large companies assembling or manufacturing electric vehicles, manufacturing electric vehicle components or cells, battery packs or modules and charging infrastructure equipment.
A technical committee will be formed to define and certify EV components claiming incentives and concessions under the policy.
“The amount of incentives sanctioned to a manufacturing / assembly unit under this policy shall not exceed 100 percent of the value of the fixed assets (VFA) created by the unit,” the ordinance said.