Karnataka tweaks Electric Vehicle policy to attract investment
Two key amendments to the Karnataka Electric Vehicle and Energy Storage Policy were approved by the state cabinet on Thursday to attract more investments, home minister Basavraj Bommai said.
The cabinet decided to give 15% capital subsidy to investors in the electric vehicle (EV) sector on value of fixed assets over five equal annual payments, with maximum land covered under this incentive being 50 acres.
“In 2017 itself there was a policy, but it needed some amendments. Since there is a lot of competition, some companies have gone to other states...to give more concessions,” Bommai said on Thursday, in an apparent reference to cab aggregators Ola, which decided to set up ₹2,400 crore EV manufacturing facility near Hosur in Tamil Nadu, despite being a Bengaluru-headquartered company.
Bommai said Karnataka will offer incentives “at par with Tamil Nadu”.
The second incentive is a production linked subsidy of 1% on turnover, which will be provided for a period of five years starting from the first year of commercial operations for large, mega, ultra, super mega EV assembly and manufacturing units, according to the cabinet decision.
“A technical committee will be constituted to define/certify EV components including EV lithium-ion battery suppliers to EV manufacturing enterprises etc. claiming incentives and concessions under the new policy,” the government said.
The amendments also include a clause to encourage in-plant training provided by the EV manufacturers in the state by offering a stipend up to 50% of the cost of training subject to a limit of ₹10,000 per month per trainee.
Karnataka has also set aside around 400 acres to set up an EV park near Bidadi, near Bengaluru.