Tamil Nadu government announced a new EV policy after observing investment interest of about Rs 24,000 crore over the previous five years. The new EV policy will encourage electric vehicles by providing incentives to manufacturers, customers, and charging infrastructure providers.
Under the Tamil Nadu EV Policy 2023, incentives for manufacturers include advanced chemistry cell subsidies, investment- or turnover-based subsidies, and 100% reimbursement of state goods and services tax (SGST). The state will completely exempt stamp duty, exempt tax on electricity purchased from its subsidized land costs. The state has witnessed EV projects over the past five years that have the potential to create 48,000 jobs.
A sizable portion of Tamil Nadu’s public transportation will eventually be EV based. By 2030, the state might increase the proportion of electric buses to 30% of the fleet.
Road tax, registration fees, and permit fees will all be exempted or waived for EV users. Additionally, there are purchase incentives ranging from Rs 5,000 to Rs 10 lakh.
For all new jobs created during the policy period, EV projects will receive an employment incentive in the form of reimbursement of the employer’s contribution to the EPF. The EPF is up to Rs 48,00 per employee residing in Tamil Nadu. Businesses that install public charging stations in Tamil Nadu and follow the Union Power Ministry‘s guidelines will be qualified for a 25% subsidy of the cost associated with buying machinery and equipment during the EV policy period. This capital subsidy of 25% will also apply to the first 50 private charging stations.
Tamil Nadu will revise the power tariff for public charging stations. It will declare six cities—Chennai, Coimbatore, Tiruchirappalli, Madurai, Salem, and Tirunelveli—as EV cities. In these places, a Smart City Commissioner will be the nodal officer for EV adoption.
