India is experiencing a boom like never before in the electric vehicle industry. The government of India has introduced various schemes to aware the masses regarding the EVs. We already know about the FAME Scheme. Besides, the government made a significant cut in the GST rate of electric vehicles. Now, even state governments are taking their own course of initiatives to spread the use of sustainable vehicles. Recently, the state of Tamil Nadu has introduced the 2019 Tamil Nadu Electric Vehicle Policy.

In this post, we will get into the complete details about this new policy. The EV policy has been announced by the Chief Minister of Tamil Nadu, Mr. Edappadi K Palaniswami. As per this EV policy, there will be subsidies for the EV makers. Most importantly, the boost up in the electric vehicle industry in the state will bring more than a million jobs to many people.

If we take a look at the possible business prospect, the new Tamil Nadu Electric Vehicle Policy of 2019 will make way for a massive investment of Rs 50,000 crore. Also, the policy brings a lot of benefit to the consumer side. There will be tax and duty waivers over the purchase of electric vehicles. So, let’s check out in details what the policy has to offer for various kinds of electric vehicles.

Tamil Nadu Electric Vehicle Policy: Tax Exemption

As per the new policy by the Tamil Nadu state government, all the electric vehicles will be exempted from paying the Motor vehicles Tax. Guess what.? This applies all the way until 2022. We think by that time a majority of India will be making use of sustainable vehicles.

Secondly, the manufacturers will get incentives on their investments in the EV industry. More importantly, they will be exempted from paying the state goods and services tax which is otherwise known as the SGST. There is more to it. The manufacturers don’t have to pay the land registration tax for their EV products. They are also exempted from paying any kind of electricity-related taxes.

Also, the EV manufacturing companies will be reimbursed with 100% of the SGST which they paid for EV manufacturing, selling and registering. Again, there will be a 100% exemption of stamp duty for the transactions in EV manufacturing and related aspects.

What lead to the formation of this policy

This is a no brainer that pollution is one major reason why people and organizations want to shift to a sustainable mode of transport.

Tamil Nadu happens to be the state with the second-largest number of vehicles. Here, by vehicles, we mean to indicate the ICEVs. So, you can guess how much amount of active and passive pollution it can cause. So, sooner or later there is a need to limit this pollution. Hence the new EV policy. Obviously, you cannot cut down on the transportation that happens every day in the state supplementing to various business requirements. So, the basic idea is to come up with something sustainable that will minimize air pollution.

Scope and Feasibility of the Tamil Nadu Electric Vehicle Policy

Tamil Nadu can make the most out of its new policy. The electricity is available in surplus in the state. The state has 2 major nuclear plants. There is also a number of thermal energy generation and hydro-electrical power stations. In fact, Tamil Nadu has a considerable amount of renewable sources of energy generation. There are sources of wind-energy and solar-energy.

More importantly, people are now aware of the pollution threat. A majority of the populace is willing to shift to sustainable vehicles. So, we can say that this new EV policy has a lot of positive scopes. There won’t be major hassles in implementing this policy.

Eligibility Criteria

Let’s make it clear who is eligible to enjoy the incentives introduced by the new Tamil Nadu electric vehicle policy. The EV manufacturing firms and battery charging companies must follow the regulations of the FAME 2 scheme of the Government of India.

Objectives of the Tamil Nadu Electric Vehicle Policy

Now, let’s check out the policies of the new EV policy from the state government of Tamil Nadu.

  • Attract investment of up to 50,000 crores for EV manufacturing
  • Create over 1.5 lakh new jobs.
  • Provide adequate power supply and network of electric vehicles charging stations which are affordable for the consumers.
  • Come up with innovation in EV making. also, promote the eco-system of shared mobility. The aim is to turn Tamil Nadu into the EV hub of India.
  • come up with a skilled workforce for the EV industry. People should get formal education and training from the technical institutions available in the state.
  • aim to make Tamil Nadu a primary manufacturing location for EVs and EV related components. All kinds of EV related stuff such as battery packs and other charging infrastructure should be developed in Tamil Nadu itself.
  • Creation of Industry and Research Institutions that will research on the cutting edge technology of the EVs and also implement the same.
  •  Recycle the used batteries of electric vehicles. Also, take the utmost care to dispose of the scrap/used battery packs without harming the environment. This will contribute majorly to avoiding pollution.

The plan of shifting to EV

Tamil Nadu has around 25 lakh cars for personal usage. There is also a vast majority of people riding two-wheelers. So, imagine if this number of users shift into electric vehicles.

However, it is important that there must be an adequate amount of electric vehicle charging points in the state. Otherwise, a limited number of charging stations will create a lot of issues. It will consume a lot of time of the people to queue up at one charging point.

There is the plan to convert all autorickshaws operating in the major cities of Tamil Nadu into electric vehicles in the next decade. There are a plethora of people who use shared mobility every day. So, this conversion will be another major aspect of shifting completely into EVs.

Even good carriers will be informed and encouraged to shift their mode into a sustainable one for the betterment of the environment.

There are around 21,000 public buses operating in Tamil Nadu. So, the aim is to replace an estimated of 5% of these buses into electric vehicles. Each year around 1000 of electric buses will be introduced in the state. The private bus companies and owners can also convert their ICEVs into EVs.

The various educational institutions running in the state operate around 32,000 buses. So, there will be focus to shift the ICEV transportation to EV.

If a majority of this planning is implemented correctly, then this policy will be very successful in the state. In fact, on a national scale, it will contribute to the minimization of pollution. Also, it will empower India on the global front of electric vehicle promotion and use.

Detailing out the incentives offered by the Tamil Nadu Electric Vehicle Policy

Let’s check out in details what are the incentives offered in the latest policy offered by the state government of Tamil Nadu.

There will be complete tax exemption on all-electric vehicles till 30.12.2022. also, the registration fees will be waived off as well. Three seater capacity autorickshaw will get incentives. The permit fees are exempted till 2022. It is applicable to the light goods carriers as well.

The transport unions of the state will receive subsidies to purchase electric buses. The private car owners have to pay up to 50% of the road tax. However, they will be waived off their EV registration charges and fees.

Plans for EV charging stations

The government has the plans to set up 3*3 charging grids in various cities like Chennai, Coimbatore, Trichy, Madurai, Salem, and Tirunelveli. It will invest in installing a multitude of EV charging points. The public sector is expected to participate actively along with the private sector investors.

So, that pretty much sums up the Tamil Nadu Electric Vehicle policy 2019. We hope you liked this post. For more such informative articles, make sure to follow us on Facebook and Twitter. EVLens brings you the latest news updates about all the happening in the electric vehicle world.