Electric Vehicles have been on a rise for the last few years. The year 2022 is no different as the Indian Government has made it clear that EV is the way to the future. Joining the bandwagon is the Haryana Government which approved the State’s EV Policy 2022 on Monday. Under the policy, the government will offer many financial incentives to EV manufacturers.
The decision to adopt the state policy was taken in a state cabinet meeting headed by CM Manohar Lal Khattar.
State EV Policy
The policy will offer financial incentives to EV makers by giving incentives on fixed capital investment, net SGST, stamp duty, and employment generation among others. Stamp duty will get a 100% reimbursement while electricity duty will be exempted for 20 years. As for the SGST, it will be 50% of the applicable SGST for 10 years.
All those companies who will make EVs and their components like EV batteries and charging infrastructure will get capital subsidies. The mega industry will get a capital subsidy at 20% of FCI or Rs. 20 crore, whichever is lower.
The large industry will get a subsidy of 10% of FCI or up to Rs. 10 crores while the medium industry will get 20% of FCI up to Rs. 50 lakhs. The small industry will get 20% of FCI up to Rs. 40 lakhs and finally the micro industry will get 25% of FCI up to Rs 15 lakhs.
Battery disposal units will also get incentives. It will get 15% of FCI up to Rs. 1 crore. The State policy will provide an employment generation subsidy of Rs. 48,000 per employee per annum for 10 years in lieu of Haryana domiciled manpower being employed with EV companies.
The aim is to create 100% of Haryana’s buses owned by Haryana State Transport into electric busses Fuel Cell Vehicles or other non-fossil fuel-based technologies by 2030.
Special mention has been given to two cities- Gurugram and Faridabad which will be declared as model Electric Mobility cities with an ultimate goal to adopt EVs and charging infrastructure to achieve 100% e-mobility.
For any state to move ahead in terms of EV usage, charging stations are a must. This will be done by the Department of Town and Country Planning which has been told to include provisions for charging of EVs in places like Group Residential Buildings, commercial buildings, institutional buildings, Malls, Metro Stations, and more.
What does Government say?
The year 2022 has been called the ‘Year of the Electric Vehicles’ in Haryana. The EV policy has greater aims as well like reducing carbon footprint, protecting the environment, making Haryana an EV manufacturing hub, ensuring skill development in the EV field, encouraging uptake of EV vehicles, providing charging infrastructure, and encouraging R&D in EVs.
To encourage more and more production of EVs, the policy has decided to provide one-time support to facilitate the conversion of existing units completely into EV manufacturing units of 25% of book value up to Rs. 2 crores for micro, small, medium, and large units.
Incentives for Buyers
One more important point of concern is the hesitation of the buyers to go for EVs. One main reason behind this trend is the high cost of Electric vehicles. Thus, the policy has allowed for incentives to buyers as well. These incentives will reduce the upfront cost and motivate people to buy EVs as the primary mode of commute. Early bird direct benefit of up to Rs. 10 lakhs will be given on the purchase of EVs or Hybrid EVs in Haryana. There will be relaxation in registration fees and discount on Motor Vehicle Tax as well.
Electric Vehicles- R&D
The Policy of the State encourages R&D in educational or research institutes if they set up R&D centers. The state will provide 50% of the project cost up to Rs. 1 crore for developing new electric charging technology and up to Rs. 5 crores for developing new electric vehicle technology.
Those who will carry out this research with a nonfossil fuel-based solution will be given Rs. 5 crores as a grant. Also, there is a subsidy of Rs. 25 lakhs for the 1st 20 colleges/industrial training institutes/ polytechnics for setting up infrastructure related to the R&D of EVs.
Everyone will be incentivized to set up Centres of Excellence. Everyone includes Government organizations, PSUs, private companies, and more. A 50% grant of project cost up to Rs. 5 crores will be the incentive.