Telangana EV & Energy Storage Policy
The Telangana EV & ESS policy builds upon FAME II scheme through fiscal and non-fiscal incentives to further improve the use case for the adoption of EVs
In Aug-20, the Telangana Government rolled out the State EV policy that is aimed at attracting investors and manufacturers while incentivizing the use of EVs across personal, shared, and public transportation. Unlike Delhi where the shift to EVs is expected through demand incentives/subsidies, Telangana Government aims to achieve that objective through non-fiscal means and supply-side incentives.
The policy which is valid for 10 years includes incentives for manufacturing of EVs, ESS and related components in the form of capital subsidies, SGST reimbursements, power tariff subsidies, etc, while for buyers it is restricted to exemption of road taxes and registration fees. The government will look to promote battery operated feeder shuttle services at all Hyderabad Metro Stations for last-mile connectivity and facilitate taxi aggregators to enable them to convert their fleets to electric vehicles.
Broad targets
To make Telangana a hub for Electric Vehicles & Energy Storage Systems
To make Telangana state the preferred destination for Electric Vehicle, ESS, and component manufacturing
To attract $4B investment and create 1.20 lakh employment by 2030
Demand Incentives for Personal Mobility
For the first 2,00,000 e2Ws, 100% exemption of road tax & registration fee
For the first 5,000 private e4Ws, 100% exemption of road tax & registration fee
Preferential parking slots with required charging infrastructure shall be made available for Electric Vehicles
Demand Incentives for Shared Mobility
For first 20,000 e-auto rickshaws, 100% exemption of road tax & registration fee
For the first 5,000 electric commercial passenger Vehicles such as Taxi, Tourist Cabs, 100% exemption of road tax & registration fee
For the first 5000 e-autos, 15% Retro-fitment incentive capped at Rs. 15,000
For the first 500 e-Buses, 100% exemption of road tax & registration fee
For the first 10,000 electric three-wheelers (goods), e-carriers as well as electric light goods carriers 100% exemption of road tax & registration fee
Support for Charging Infrastructure
The government shall facilitate the setting up initial lot of fast-charging stations
The State shall establish public charging stations under the licensee/franchise/PPP model
The State shall provide special Power Tariff category for EV Charging Stations to enable private players to develop viable business models for public charging
To encourage the use of EV vehicles, the policy offers parking facilities with charging points for two-wheelers at Metro Rail and bus stations
Night-time community parking with a charging facility in PPP mode is to be set up for e-autos, shared taxis and public transport vehicles within industrial zones
Charging/ swapping station for every 50 km within state boundaries on the highway to cities like Bengaluru, Mumbai, and Chennai, followed by other national/state highways shall be encouraged
A battery disposal infrastructure model shall be created to facilitate deployment of used EV batteries
Support for Manufacturing:
Setting up of Electronics Manufacturing Clusters (EMC) and Industrial Parks at Raviryal, Maheshwaram, and Divitapally
EV & ESS sectors shall be incentivized as below
Capital investment subsidy of 20% capped at Rs 30 cr
100% net SGST reimbursement capped at Rs 5 cr per year
25% Power Tariff discount for 5 years capped at Rs 5 cr
100% Electricity Duty Exemption for 5 years capped at Rs 0.5 cr
5.25% Interest Subvention for 5 years capped at Rs 5 cr
Transport Subsidy: 60% with 10% reduction yoy for 5 years capped at Rs 5 cr
100% Reimbursement on Stamp Duty/ Transfer Duty/ Registration Fees
Promote reuse of EV batteries in stationary energy storage applications
Urban Mining of rare materials and cell/ battery recycling shall be incentivized on par with EV & ancillary manufacturing
Encourage Manufacture and assembly of EV related batteries and cells
Policy measures & business incubation
Preferential market access for components and products produced in the state
A mega EV & ESS cluster with global standard infrastructure shall be developed with the following benefits extended to them.
Support for land, power, and water acquisition
A common facility for Design, prototyping, and testing
Shared facilities to meet staffing and training
A multimodal logistics hub shall be developed
EV Research Hub: A dedicated facility shall be developed to house EV R&D centers by domestic and global EV Majors
Centers of Excellence: State Government shall partner with premier Technical Institutes and research establishments to establish Centers of Excellence for conducting market-focused research on Battery Technologies, battery management, motors, and controllers. State Government shall seek Industry participation and leverage GOI EV policy to provide grant to these centers
T- Fund: The Government shall offer financial support to Start-ups for research and innovation in EV & Battery technologies.
All in all a comprehensive policy from the point of view of encouraging manufacturers to set up facilities there. Companies such Medha group, eTrio, Olectra BYD & Gayam motors have set up their production bases there and more companies have shown interest given the preferential market access and sops related to land, water, and power acquisition that are part of the policy.