As the State Government is working for an Electric Vehicle (EV) Policy, its several departments are engaged in working out on subsidies to be given to the investors.
The Government has decided to go for EV Policy, which will promote manufacturing of e-vehicles in the State.
Taking cue from the Government of India, the State Government is working towards an EV Policy, which will be finalized soon as the Union Government is eyeing 100 per cent electric vehicles by 2030.
In the meantime, five States, Tamil Nadu, Karnataka, Andhra Pradesh, Uttar Pradesh and Delhi have gone for the EV Policy.
The NITI Aayog is requesting all the State Governments to formulate the EV Policy in order to promote such an eco initiative.
Senior officials of the Department of Commerce and Transport, Finance, Energy, Industries and MSME are engaged in working out the amount of subsidies and incentives needed to be given to promote such an initiative.
Capital subsidies for public charging stations, interest subsidy for plant and machinery, State GST reimbursement for battery swapping operators are being worked out.
Cent per cent State GST reimbursement for a stipulated period will be worked out and similar benefits of SGST for sale of EVs manufactured, sold, registered for use in the State is needed to be given, experts advise.
Similarly provision of capital subsidy of 20 per cent of the eligible investment over 20 years in cases of manufacturing units of EV battery, subsidy on land cost, and others are being worked out, said sources.
Experts are advising for more subsidies for the units to come up in rural and semi urban areas.
Similarly the amount of interest subsidy may be allowed and it is needed to be incorporated in State EV Policy, which will generate interest among the investors.
For last mile connectivity e-rickshaw service is needed and in order to promote such facilities in the arterial roads, manufacturing of e-rickshaw is required.
Scheme of e-rickshaw manufacturing and provision of subsidies and incentives are needed to be incorporated in the proposed EV Policy, advise experts.
Provisioning of mobile charging vans to provide on-road assistance for the vehicle owners who run out of charge so that they can travel at least 20 km to reach nearest charging stations is needed.
Quantum of subsidies will be worked out looking at the available resources allocated by the Union Government for setting up charging stations, electric buses, four wheelers, three wheelers for commercial purposes and original equipment electric vehicle manufacturers.
As per Government of India directive, income tax rebate up to Rs 1.5 lakh to the customers on interest paid loan to buy EVs with a total exemption benefits of Rs 2.5 lakh over entire loan period has been defined in Union Budget of 2019-20.