According to reports cited by CNBC-TV18 on September 25, the Karnataka government is contemplating a new five-year electric vehicle policy in addition to eliminating road tax from all electric and strong hybrid vehicles costing less than Rs 25 lakh.
The article further stated that the state is considering offering incentives equal to half of the value of fixed assets in order to attract investments totaling Rs 50,000 crore in the clean mobility value chain by 2029.
For a period of five years, new projects or project expansions can receive a Production-Linked Incentive (PLI) equal to one percent of turnover.
According to the article, the state administration is also considering giving businesses a 15–25 percent capital investment incentive as well as stamp tax exemptions.
The news comes as Karnataka is preparing to court businesses to establish operations in the state after losing to neighboring Tamil Nadu in the manufacturing plants of Bengaluru-based EV companies Ola and Ather.
Karnataka IT-BT Minister Priyank Kharge stated at the Moneycontrol Startup Conclave in Bengaluru in August that “the government is engaging more with companies, corporates, and industries.” We take what we can from them and use it to sharpen our own policies. We provide them water, land, and discounted electricity rates, among other things. In terms of innovation, policy, education, research and development, and skills, we are building a whole ecosystem.
IT-BT Secretary Ekroop Caur said, “I’m confident that with the new policies and the government’s focus on creating industrial townships around Bengaluru, which are in high demand by tech-oriented industries requiring high-end skills, we will be able to attract these companies back to Karnataka,” in response to a question about how Karnataka is losing EV manufacturing plants to neighboring states.
