Bengaluru: In a bid to create robust ecosystem for Electric Vehicles (EV) in Karnataka, the Government today unveiled a revised draft EV policy (2023-28) which aims to attract Rs 50,000 crore investment while creating a job potential of one lakh.
“This proposed policy aims to transform Karnataka into a pioneering force in the field of electric mobility, embracing sustainable practices and equitable growth while fostering innovation and creating a robust ecosystem for EVs throughout the State,” Honourable Minister Shri M.B. Patil for large and medium industries and infrastructure development said.
Addressing the ideation session with the representatives of EV industry, he said the government would soon convene a joint meeting of the ministers of finance, energy, transport, and urban development to iron out common issues before launching the final E-mobility policy.
Responding to EV industry recommendations, Shri Patil said that the government would develop model EV cities across the state to promote EV adoption. These model cities would be developed in Kalaburagi, Belagavi, Hubballi-Dharwad, and Mysuru among others.
Shri Patil said the government is in discussion with the National Highway Authority of India (NHAI) to set up electric vehicle charging stations on either side of the highway at ten major toll booths along the national highway between Bengaluru and Pune.
Smt Gunjan Krishna, Commissioner, Department of Commerce and Industries, Government of Karnataka presented the draft policy highlights and said the government has identified Gauribidanur (Chikkaballapur) and Chikkamalligewada (Dharwad) as potential locations to create large EV clusters at the right price point. The land in both locations has been acquired and is readily available for investors, she stated.
The roundtable discussion witnessed the participation from Sandeep Maini, Chairman of Sun Mobility, Kamal Bali, President and Managing Director of Volvo India, and T R Parasuraman, Executive Advisor of Toyota Group, among others. Officials of Tata Motors, Bosch, and ATS joined the conference virtually.
The current EV policy of Karnataka is expiring soon. The state was the first in India to launch the EV policy in 2017 and further strengthened the incentives in 2021 to ensure maximum benefit to investors.
The proposed revised draft policy has increased capital subsidy for testing centre to 30% for onboarding best-in-class private operators for setting up EV Testing cum Certification facility.
The existing policy provides 15% capital subsidy cap and one percent Production Linked Incentives for five years.
Further, the proposed draft policy has increased the coverage to provide incentives to include cell components like anode, cathode, separators, strong hybrid vehicles, battery recycling facilities and testing infrastructure.
These clusters would have six major components like ready to occupy land parcels, ready built factory/sheds, plug and play incubation facility, testing labs, proving grounds and homologation facility.
In addition, the Government of Karnataka has offered capital subsidy for micro and small enterprises to be in the range of 25%-30% and 20%-25%, respectively. For the medium-sized enterprises, incentives on value of fixed assets (VFA) ranges from 20%-25%.
The draft proposes a rental subsidy to include reimbursement of 30% of rent or maximum Rs 5 per square feet per month, for three years on rental properties above 10,000 square feet.
Meanwhile, the existing stamp duty exemption remains as per the ongoing policy.
To accelerate EV adoption, the proposed revised draft policy says it would rapidly identify land parcels aligned with power infrastructure for charging stations, providing favorable power tariffs.
With approximately 2.5 lakh, EVs registered and 700 charging stations in Karnataka, the state stands as the third highest in EV registrations nationally, with an 8% adoption rate, showcasing state’s commitment to reshape the mobility landscape.
For skill development, which is a strong requirement for EV industry to evolve, the Industrial Training Institute (ITI) will play a key role and not just help reduce skill development cost by 40% but will also bring down training tenure by 2-4 months.
