Tamil Nadu Electric Vehicle Policy 2023

Syllabus: Prelims Unit V - Indian Economy and Development Administration in Tamil Nadu

Objectives:

• Attract Rs. 50,000 crore worth of investments in EV manufacturing
• Create 1.5 lakh new jobs during the policy period
• Develop a robust EV ecosystem in the state
• Transform Tamil Nadu into the preferred destination for EV manufacturing in South-East Asia
• Accelerate adoption of EVs in Tamil Nadu
• Develop EV Cities: Chennai, Coimbatore, Tiruchirappalli, Madurai, Salem, and Tirunelveli

Key Policy Measures:

Manufacturing Incentives:

• 100% reimbursement on state GST for EV manufacturers
• Investment or turnover-based subsidies
• Advanced chemistry cell subsidies
• Tax exemption on electricity purchased from state discom for 5 years
• Stamp duty exemption and land cost subsidies

Consumer Incentives:

• Exemptions and waivers on road tax, registration charges, and permit fees
• Purchase incentives ranging from Rs. 5,000 to Rs. 10 lakh

Charging Infrastructure:

• 281 charging stations sanctioned under FAME II
• Development of charging infrastructure through budgetary allocations
• Identification of sites for public slow and fast charging stations
• Establishment of charging stations on highways at 25 km intervals

Public Transport:

• Aim to increase electric buses to 30% of fleet by 2030
• Encourage private buses and school/college vehicles to switch to EVs

MSME Support:

• 20% additional capital subsidy over existing schemes
• 6% interest subvention for medium-sized MSMEs

Intellectual Property Incentive:

• 50% reimbursement on patent, copyright, and trademark costs (up to Rs. 1 crore)

Transition Support:

• Up-skilling allowance for 10% of workforce transitioning to EV production
• Training subsidy of Rs. 4,000 per worker per month (Rs. 6,000 for women, transgender, disabled, SC/ST)

Investment and Job Creation:

• MoUs signed for investments of nearly Rs. 24,000 crores
• Potential to create 48,000 jobs in the EV value chain

Key Players:

• Ather Electric, Ola Electric, Ampere establishing manufacturing units
• Ola Electric committed Rs. 7,614 crore investment for electric light motor vehicles
• Renault-Nissan committed Rs. 5,300 crore for new projects
• Foxconn committed Rs. 1,600 crore for mobile component manufacturing

Export Performance:

• Tamil Nadu leads in electronic exports with $4.78 billion (as of October 31, 2023)
• Expected to reach $8 billion by the end of the financial year