Karnataka State EV Policy
3 years after Karnataka formulated its Electric vehicle policy, adoption hasn't really happened - with over 70 lakh vehicles registered in the state, there are only 10000 EVs and a handful of chargers
In Sep-17, the then BJP government approved the State EV policy aimed at attracting investors and manufacturers while incentivising the use of EVs across personal, shared and public transportation. In doing so Karnataka became one of the first states to have comprehensive document in place, but it hasnt had the kind of impact envisioned. Maharashtra despite coming up with a policy 1 year later, has double the number of E-vehicles registered there and Delhi has almost 4 times as many. Lack of charging infrastructure, no demand incentives for purchase of cars is largely to blame.
Broad targets
Elevate Karnataka to become a preferred desitnation for EV manufacturing
Attract $4.5B investment and create 55000 job opportunities
Setup 5GWh of advanced EV Battery manufacturing capacity
To create a conducive environment for transitioning from ICE to EVs
Incentives & Concessions
For EVs and service providers of EV mobility
Exemption of taxes for all vehicles
All (2W/3W, bus, car) fast charging stations will be offered a capital subsidy of 25% subject to a limit of Rs 10 lakhs per station for the first 100 stations
2W/3W battery swapping stations will be offered a capital subsidy of 25% subject to a limit of Rs 3 lakhs per station for the first 100 swap stations
4W battery swapping stations will be offered a capital subsidy of 25% subject to a limit of Rs 5 lakhs per station for the first 50 swap stations
Bus battery swapping stations will be offered a capital subsidy of 25% subject to a limit of Rs 10 lakhs per station for the first 50 swap stations
For EV component manfuactures (A), batter manufacturers (B) and charging/ swapping equipment manufacturers (C) there are investment promotion subsidies which can be claimed 1 year after commercial production and interest free loans on SGST. There is also 100% exemption on stamp duty, concessional registration charge, reimbursement of land conversion charge and 5 year exemption from duty/tax on electricity tariffs.
Special Incentives for EV manufacturing
EV Manufacturing Parks/Zones
Make land available for EV manufacturing zones
Make infrastructure in the form of ready-built factories available
Dedicated testing track and facility for EVs
Transitioning to EVs
Waiver of taxes for all EVs including E-rickshaws and E-carts
Support for 2W taxis in short distance shared mobility segment
Encourage retrofitment of existing autos
Encourage auto-rickshaws, cab aggregators, corporate fleet and schools to move towards EVs and achieve 100% electrification by 2030
Flexible stage carrier for E-Buses outside BMTC area
BMTC, KSRTC to introduce 1000 E-Buses
BMTC to introduce Vaayu Vajra service in certain Airport routes
Encourage Mini goods carriers to achieve 100% E-Mobility by 2030
Encourage E-commerce & delivery cos to achieve 100% E-Mobility by 2030
Facilitation to EV, Battery & Charging Equipment Manufacturing
Fast track clearances from environmental & labour departments
Encourange manufacturing of modular batteries
Support for Charging Infrastructure
Encourage private players to setup ARAI compliant EV charging infrastructure
Offer land on long terms lease for setup of EV Fast Charging infrastructure
Creation of a nodal body (SPV of BBMP, BMTC, BESCOM, KREDL, KIADB)
Incentive through investment subsidy for the first 100 fast charging stations
Create special tariff for viability of EV Charging stations
Encourage use of solar /renewable energy at low connection cost
On high density corridors setup Fast EV charging every 50kms
Amend buildin bye-laws to provide charging infra in all high rise buildings, SEZs, Technology parks and apartments
BBMP, BMTC, KSRTC, BMRCL to provide 2W charging at their parking
Charging infras for personal vehicles of all government employees to be made
Encourage battery leasing along with pay-per-use business models
Deploy used EV batteries for solar / energy storage needs
Support for R&D
Consitute working groups in areas of Drivetrain, Battery technologies, Charging infrastructure, network integration and materils/recycling
Create an Electric Mobility Research and Innovation center on a PPP basis to extend research & incubation support to budding engineers
Create a startup incubation center
Research program with industry collaboration to be launched in Univs/Colleges
Support for Skill development
Creation of short term course on electric mobility
Stiped of upto Rs 10000 per month given to trainees who take in-plant training
The policy aims to drive change through non fiscal incentives and regulatory means, but the government may have to bring in monetary incentives to revive the demand side which will kick start the proverbial flywheel.