Karnataka govt revises EV policy, targets INR 50,000 cr investment over five-year period

Karnataka govt revises EV policy, targets INR 50,000 cr investment over five-year period

The state of Karnataka wants to make more electric vehicles (cars, bikes, etc.) and use less petrol or diesel. They have a plan for the next five years to do this. They hope that this plan will bring a lot of money and jobs to the state.

“This proposed policy aims to transform Karnataka into a pioneering force in the field of electric mobility, embracing sustainable practices and equitable growth while fostering innovation and creating a robust ecosystem for EVs throughout the state,” Minister for large and medium industries and infrastructure development, M B Patil, said on the occasion. 

Speaking at a brainstorming session with key players in the electric vehicle industry, he said that the government is planning to organize a collaborative meeting involving the ministers of finance, energy, transport, and urban development. This meeting aims to resolve prevailing issues in a unified manner before the rollout of the definitive E-mobility policy.

In response to suggestions put forward by various participants from the EV industry, Patil said that the government would develop model EV cities to promote EV adoption. These model cities would be developed in Kalaburagi, Belagavi, Hubballi-Dharwad and Mysuru among others. The government is in discussion with the National Highway Authority of India (NHAI) to set up electric vehicle charging stations on either side of the Bengaluru-Pune national highway at 10 major toll booths, he said. 

Gunjan Krishna, Commissioner, Department of Commerce and Industries, Government of Karnataka, presented the draft policy highlights and mentioned that the government has decided to build large electric vehicle clusters at the “right price point” in Gauribidanur (Chikkaballapur) and Chikkamalligewada (Dharwad). 

She said that investors can easily obtain the land in both areas as it has been purchased. A statement from the Minister’s office states that Karnataka’s current EV policy is about to expire. To guarantee “maximum benefit” to investors, the state became the pioneer in India in 2017 by introducing the EV policy and bolstering the benefits even further in 2021. 

“The proposed revised draft policy has increased the capital subsidy for testing centres to 30 per cent for onboarding best-in-class private operators for setting up EV testing cum certification facilities. The existing policy provides a 15 percent capital subsidy cap and one per cent incentives for five years,” it said. 

Additionally, it stated that the proposed draft policy has expanded its scope to include incentives for cell components such as anode, cathode, separators, powerful hybrid cars, battery recycling facilities, and testing infrastructure. 

The six main components of these clusters are the ready-to-occupy land parcels, ready-built factories and sheds, plug-and-play incubation facilities, testing labs, proving grounds, and homologation facility. 

Furthermore, the Karnataka government has provided capital subsidies to micro and small businesses, with amounts ranging from 25 to 30 percent and 20 to 25 percent, respectively. According to the statement, incentives on the value of fixed assets (VFA) for medium-sized businesses range from 20% to 25%. The proposal calls for a three-year rental subsidy on homes larger than 10,000 square feet, including a repayment of 30% of rent, or a maximum of Rs five per square foot every month. 

In the meantime, the current policy’s exemption from stamp duty is still in effect. The statement claims that in order to hasten the adoption of EVs, the amended draft policy being suggested will quickly identify property parcels that are in line with the power infrastructure needed for charging stations and offer competitive power pricing. 

“With approximately 2.5 lakh EVs registered and 700 charging stations in Karnataka, the state stands as the third highest in EV registrations nationally, with an eight percent adoption rate, showcasing the state’s commitment to reshape the mobility landscape,” it said. 

Industrial Training Institutes (ITIs) will be crucial to the evolution of the EV industry in terms of skill development, which is a major demand for the sector to change. They will not only assist in lowering the cost of skill development by 40% but also shorten training durations by 2-4 months, it noted.

Content Credit: ET Auto