Tamil Nadu EV Policy
Tamil Nadu is offering total road tax exemption for e2Ws, e3Ws, cars and light-goods carriers used for commercial transport until 31.12.2022, and several supply-side sops in a comprehensive push to EV
In an attempt to give a boost to the manufacture and use of electric vehicles in the State, Tamil Nadu Electric Vehicle Policy 2019 was launched in Sep 2019, which provided for various concessions to manufacturers and users of e-vehicles. This policy will be valid for 10 years and brings in-demand incentives for use of electric vehicles, supply-side incentives for manufacturers, and building a holistic EV ecosystem.
With 6.4% electric vehicle penetration, Tamil Nadu has fared better as compared to most other states in India when it comes to EV adoption, and with deep linkages in the automotive sector, it is expected to do well with the policy in place.
Targets
Attract ₹50,000 crores of investment in EV manufacturing and create a
comprehensive EV ecosystem in the State.Create robust infrastructure for electric vehicles including adequate power supply and network of charging points
Make Tamil Nadu the preferred destination for EV and component manufacturing units including battery and charging infrastructure.
Demand incentives for 2Ws
100% road tax exemption will be provided till 30.12.2022
A waiver on registration charges/fees
With 85% of registered vehicles being 2Ws, and cost parity of E2Ws adoption in this segment is expected to be faster through fiscal benefits and a charging network
Demand incentives for 3Ws
100% Road Tax exemption for e-autos till 30.12.2022.
Permit fees will be waived for e-autos till 30.12.2022
A waiver on registration charges/fees
Autos will be encouraged to switch to electric over the next 10 years
Demand Incentives for private Cars
Private car owners shall be encouraged to switch over to EV
A waiver on Registration charges/fees
Road tax exemption will be enhanced from 50% to 100% till 30.12.2022
Demand incentives for Cabs
The state will support the conversion of all taxis and app-based transport operators and aggregators in the six major cities to EVs within 10 years.
Taxi permit fees will be waived for Electric Transport Vehicles till 30.12.2022
100% Road Tax exemption for all Electric Transport Vehicles till 30.12.2022
A waiver on Registration charges/ fees
Demand incentives for buses
STUs will be provided with a subsidy to enable the purchase of EV buses.
Around 21,000 Public Transport buses are operated by State Transport Undertakings (STUs) in the State. STUs will strive to replace 5% of the buses with EV every year and around 1000 EVbuses may be introduced every year.
Demand incentives for Light Goods Carriers
There will be no requirement for a permit for the three-wheeler
goods, e-carriers as well as electric Light Goods carrier.100% Road Tax exemption for all e-carriers registered till 30.12.2022.
A waiver on Registration charges/fees
Incentives for setting up charging infrastructure Adequate policy support will be needed for the development of charging infrastructure in cities and other places.
Invest in setting up charging stations in commercial buildings such as hotels, shopping malls, cinema halls, apartments; in Government office parking lots in 6 major cities, and in other public places on its own or through private operators
Develop schemes with an appropriate capital subsidy to enable private operators to set up public charging stations
Set up 3*3 Grid charging stations in Chennai, Coimbatore, Trichy, Madurai, Salem, and Tirunelveli
One charging station will be set up at 25 km intervals on both sides of NHAI and State Highways
Tariff for the supply of electricity to Public Charging Stations (PCS) will be determined by TNERC and it will be endeavored to fix the tariffs not more than 15% above the average cost of supply.
Amendment to building and construction laws will be made to ensure that charging infrastructure is integrated at the planning stage itself for all new construction and apartments in cities.
At least 10% of Parking Space will be earmarked for EVs in commercial buildings such as hotels, shopping malls, cinema halls, apartments, etc. and charging stations will be set up in the earmarked space.
Supply Side incentives. The Government shall provide manufacturers of electric vehicles, auto components, EV batteries, and charging infrastructure with a special incentive package provided their investments are more than ₹50 crores, create at least 50 direct jobs in the form of new projects or expansion projects, and were made post-April 1, 2018.
100% SGST Reimbursement for sales by manufacturers till 31.12.2030
15% capital subsidy on eligible investments over 10 years made till 31.12.2025
100% exemption on electricity tax till 31.12.2025.
100% exemption on stamp duty for acquisition of land
Reimbursement of ₹48000 towards the payment of the employer's contribution to the EPF for all new jobs created till 31.12.2025.
For investments in EV battery manufacturing made till 31.12.2025, the state will provide a capital subsidy of 20% of the eligible investment over 20 years
The Government will develop exclusive EV parks in major auto manufacturing hubs and also in areas that have the potential to attract investments.
Additional subsidies for MSME sector companies
Support for battery recycling
The Government will encourage the re-use of EV batteries
Charging Station Operators will be encouraged to operate as end-of-life battery recycling agencies
OEMs are to take responsibility for recycling old batteries & components
Capacity building & Business Incubation
Develop and execute training programs, provide finishing and short term skilling courses in select Engineering and Technical Institutes
Encourage start-ups in the EV sector and offer incubation services to them in the form of office space, common facilities, and mentoring support.
Setup an EV Venture Capital Fund to offer financial support to EV start-ups