Telangana State EV Policy
The policy aims to make Telangana an EV Hub through incentives for consumers, manufactures and charging infra providers. This will encourage FDI and create job employment opportunities.
In Aug-20, the Telangana Government approved the State EV policy that is aimed at attracting investors and manufacturers while incentivising 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.
Broad targets
Attract $3B investment and create 5 lakh employment by 2022
100% migration to EVs by 2030
Develop a proving ground for viable Business models for EVs
Promote innovation in EVs and other emerging trends such as Autonomous/Connected Mobility
Make Telangana the preferred destination for EV & component manufacturing
Demand Incentives
Road tax exemption for all electric vehicles till 2025
Establish an adequate network of charging/swapping infrastructure
Preferential market access to 'Make in Telangana EVs' for Government Orders
For Personal Mobility
Exemption of registration charges on personal vehicles purchased till 2025
Interest Free loans up to 50% of the cost to all state government employees for purchase of EVs
Only EVs to be allowed in high traffic density areas in Hyderabad by 2025
Free Parking in public parking places and Toll exemption on State Highways for EVs till 2025
For Shared Mobility
Battery operated shuttle services at all Metro Stations for last mile connectivity
Migrate all auto rickshaws within Hyderabad municipal boundary to EV
Encourage cab operators/ aggregators to switch to full EV fleet in phased manner
Permission for corporate ownership of e-auto rickshaws/e-Ricks to enable entrepreneurship and create jobs
For Corporate Transportation
Corporate offices with annual turnover of Rs 100+ Crore operating within GHMC limits to compulsorily migrate 25% of their employee commuting fleet to EVs by 2022 and 100% by 2030. The same rule will be extended to corporate entities operating in other cities in the state.
Allow use of CSR funds for electrification of employee commuting fleets
Encourage educational institutions & hospitals for a 25% switch by 2022 and 100% by 2030 of their Buses /Passenger vehicles fleet to EVs
For Public Transport
Telangana State Transport corporation to set a target of 100% electric buses by 2030 for intra-city, intercity and interstate transport (key milestones – 25% by 2022, 50% by 2025 and 100% by 2030)
Airport flight shuttles and PUSHPAK buses to be transitioned to EV on priority
Government vehicles (owned and contractual)to switch to all electric by 2025, in phased manner
Contract carriage permits for private operators with EV fleet operations
For Freight & Logistics
Intra-city goods delivery services (< 2 tons) to switch to EVs only by 2030
Encourage all app based and e-commerce delivery services to migrate 25% of their vehicles fleet to EVs by 2022 and 100% by 2030
Support for Charging Infrastructure
Government will set up first 100 fast charging stations
Develop common standards for batteries and charging infrastructure to ensure interoperability.
Develop a viable business model for private players to set up ARAI compliant EV charging stations/ infrastructure at public places
Discoms to enable setting up of private charging station and re-sale of power.
Creation of EV tariffs for public & private. Duty exemption on power tariff will be extended to public charging stations for a duration of 5 years
Land belonging to Government Agencies to be offered to private players on long term lease at subsidized rates and 2 year moratorium period on rental payment for setting up charging/swapping stations, through a bidding process.
Amendment to building and construction laws will be made to ensure charging infrastructure is integrated
Charging spots will be made mandatory in all commercial buildings such as hotels, shopping malls and technology parks.
Apartment associations with 200+ families will be encouraged to provide charging points in parking lots and will be supported by capital subsidy of up to 25%, capped at 5 lakh
Existing Residential Townships with 1000+ families will be encouraged to develop charging stations , supported by capital subsidy of up to 25%, capped at 10 lakh for each station with 4 fast chargers
75% of SGST paid on the fast charging equipment / machinery procured by any entity for setting up private/public/institutional charging stations will be reimbursed.
Supply of Renewable energy will be ensured on preferential basis at special tariffs for EV charging stations with zero connection cost and wheeling charges
Supply side incentives and policy measures
A designated EV cluster spread over 1500-2000 acres catering to EV/EV component manufacturing for two wheelers, Cars, Buses & Trucks will be integrated with the Automotive Park plan.
Support for land, power and water acquisition
Centres of excellence, Research hub and Smart Mobility Cluster will help accelerate the parity point of price/ performance with ICE vehicles. It will also help develop solutions as per local operating conditions and local supply chain considerations.
Battery Cell Manufacturing and Assembly Promotion:
‘Make in Telangana’
Manufacture and assembly of Advance batteries will be encouraged in the State by means of special status and incentives. Preferential allotment will be made to units involved in Advance Battery products and related electronics in the Automotive Electronics Park.
Charging/swapping Equipment Manufacturing Promotion:
‘Make in Telangana’
Development of a charging network is dependent on quality supply of charging/swapping equipment & machinery.
Local manufacturing of Charging/Swapping equipment will be encouraged by means of policy support and incentives.
All in all a comprehensive policy from the point of view of encouraging manufacturers to setup facilities there. Companies such Medha group, eTrio, Olectra BYD & Gayam motors have setup 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.