Haryana Cabinet approves state electric vehicle policy
Chandigarh, June 27
The Haryana Cabinet today accorded the approval to the Haryana Electric Vehicle (EV) Policy 2022.
The policy encourages new manufacturing in the EV technology and also encourages the existing automobile manufacturers to diversify in the EV manufacturing domain. There is 100 per cent reimbursement of stamp duty along with exemption in Electricity Duty for a period of 20 years. The state GST (SGST) reimbursement shall be 50 per cent of the applicable Net SGST for a period of 10 years.
Companies manufacturing EVs, components of EV and EV battery, and charging infrastructure will be incentivised with capital subsidy.
The mega industry will get capital subsidy at 20 per cent of the fixed capital investment (FCI) or Rs 20 crore whichever is lower; large industry will get a subsidy of 10 per cent of the FCI up to Rs 10 crore, for medium industry 20 per cent of the FCI up to Rs 50 lakh, for small industry 20 per cent of the FCI up to Rs 40 lakh and for micro industry 25 per cent of the FCI up to Rs 15 lakh.
Under this policy, units setting up battery disposal units will get 15 per cent of the FCI up to Rs 1 crore.
The policy provides one-time support to facilitate the conversion of the existing manufacturer units completely into EV manufacturing of 25 per cent of the book value up to Rs 2 crore for micro, small, medium and large units. The cost of an electric vehicle is comparatively higher than the conventional-fuel-based vehicles, which is a major deterrent to buyers in switching to EV.
The policy offers incentives to buyers that would reduce the effective upfront cost and motivate individuals to take up electric vehicles as their primary mode of transportation. It will provide early-bird direct benefit transfers up to Rs 10 lakh on the purchase of EVs or hybrid EVs in the state. Buyers will also be eligible for relaxation in the registration fee and a discount on Motor Vehicle Tax.
The policy provides for an employment generation subsidy of Rs 48,000 per employee per annum for 10 years for Haryana domiciled manpower being employed with EV companies.
In addition, the Department of Town and Country Planning (TCP) will mandatorily include the provisions for the charging of electric vehicles in places such as group residential buildings, commercial buildings, institutional buildings, malls, metro stations for enabling the overall ecosystem for uptake of EVs.
The Cabinet approved the Haryana State Data Centre Policy 2022 to provide impetus to the development and growth of the data centres industry in the state. Investments of Rs 7,500 crores would be expected. The policy aims to create a conducive business environment and facilitate the establishment of 115-120 new data centres in Haryana.
The Cabinet approved the Haryana State Startup Policy 2022 to provide impetus to the Startup Ecosystem. At least 5,000 new startups would be established in Haryana over the next five years, providing direct and indirect employment to 75,000 persons. At least 14 Unicorn Startups (with at least $1 billion valuation) out of 101 Unicorn Startups of India are based out of Haryana. At present, 3,910 state-based startups are operational.
Incentives galore
- Incentives to buyers that will reduce effective upfront cost and motivate individuals to take up electric vehicles as their primary mode of transportation.
- 100% reimbursement of stamp duty and exemption in electricity duty for 20 years.
- Incentives for firms manufacturing EVs, components of EV, EV battery and charging infra.
- Mega industry will get capital subsidy at 20% of full capital investment or Rs 20 crore whichever is lower.
- Relaxation in registration fee and a discount for buyers in motor vehicle tax.
