Tamil Nadu Ev Policy 2019
Tamil Nadu Ev Policy 2019
Tamil Nadu Ev Policy 2019
I Preamble 01
B. Capital Subsidy
D. Stamp Duty
J. Transi on Support
XV Implemen ng Agencies 22
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one of the most pressing ques ons of this century. The shi to clean
transport has become necessary due to rapid deple on of fossil fuel and
increase in fuel cost, vehicle popula on and environmental pollu on. These
push factors are driving governments and vehicle manufacturers to invest in
developing vehicles based on alternate propulsion systems including
electric mobility on rechargeable ba eries. The electrifica on of transport
is important for achieving goals of reducing GHG emissions and improving
local air quality. Electric Vehicles (EVs) are generally considered to be safer
than their Internal Combus on Engines (ICE) counterparts because of a low
centre of gravity due to the low posi on and density of the ba ery pack, and
increased frontal crumple zone. EVs generally have an increased crumple
zone since electric motors take up much less space than ICEs which makes
EVs much safer.
Adop on of Electric Vehicles (EVs) for road transport contributes to a
wide range of goals. These include be er air quality, reduced noise
pollu on, enhanced energy security and in combina on with a low carbon
power genera on mix - reduced greenhouse emissions. In addi on to being
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very efficient in reducing local air pollu on, EVs can also lead to a reduc on
in overall pollu on when electricity is generated from clean or renewable
sources. This is par cularly relevant for the State of Tamil Nadu which is the
leader in renewable energy with an installed capacity of 12,180 MW.
In this decade alone, there has been tremendous innova on in EV
Technology which has led to a decrease in ba ery costs and increase in
performance and range. This progress can be expected to con nue at an
accelerated pace. Within the next decade, there is a clear possibility of cost
reduc on in electric mobility through advancements such as:
a) Ba ery cost is expected to decrease by half.
b) Electric Vehicle performance is expected to improve by two-
folds.
c) Charging me is expected to decrease from 5 hours to less than
1 hour, thereby, reducing the range anxiety.
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The projected total vehicle popula on for the year 2030 is 9.8 crore
vehicles. Given that the transporta on sector currently accounts for nearly
one-fourth of GHG emissions and the projected growth of the fleet in the
State, there is an immediate need to transi on to an alternate cost-effec ve
fuel that creates less pollu on.
Tamil Nadu has the second highest vehicle popula on in the country
with 2.77 crore vehicles. This accompanies an increase in air pollu on and
accidents in the state. Tamil Nadu has the highest rate of urbanisa on in the
country with close to 50% of its people residing in urban areas. The
Government of Tamil Nadu has led many ini a ves to reduce air pollu on
and conges on on roads . At the end of FAME Phase I, the electric vehicle
penetra on remained low in Tamil Nadu. A dedicated strategy to address
price of EVs, public charging infrastructure and investment in EV
manufacturing and charging infrastructure is required to promote adop on
of EVs in the state.
The Vision 2023 Tamil Nadu envisages Tamil Nadu to be the most
prosperous and progressive state free from poverty, and where its people
enjoy all the basic services of a modern society and live in harmonious
engagement with the environment and with the rest of the world. In order to
a ain the objec ves as per the priori es of the State of Tamil Nadu and the
Govenment of India, the formula on of a dedicated Electric Vehicles Policy
has become impera ve.
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V. Advantage of EV Ecosystem
for Tamil Nadu
Tamil Nadu is on the verge of transi oning to new mobility solu ons
and has an established ecosystem for its vibrant automo ve sector with a
large pool of technical manpower, robust R&D capabili es, ancillaries auto
components and manufacturing exper se.
The sector has deep backward linkages with metal industries, capital
equipment, trucking, warehousing, and logis cs. In addi on, it also has
strong linkages with dealership, retail, credit and financing, repair and
maintenance, gas sta ons and service parts.
Chennai is home to major automobile manufacturing companies in
India, such as Hyundai, Ford, Nissan, TVS, Mahindra, Daimler, etc. It has a
huge scope for upgrada on and expansion for producing Electric Vehicles
within the exis ng manufacturing facili es. The first EV SUV made in India
was manufactured in Tamil Nadu by Hyundai. The Government of Tamil
Nadu supported this project with a very innova ve model of financial
incen ves and facilita ons through an MoU signed with Hyundai during the
Global Investors Meet, 2019.
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Tamil Nadu is one of the power surplus states with two nuclear plants
and many thermal and hydro-electrical power sta ons in the State offering a
steady source of electricity required for the EV ecosystem. In par cular, the
State has one of the highest installed capacity for renewable energy such as
wind energy and solar energy. This offers a reduc on in overall pollu on in
addi on to reduc on in local air pollu on.
The state has many technical ins tu ons that provide a pool of skilled
workforce for the industry. On the demand side, there is predominant and
growing urban popula on augmented with a high growth of vehicles.
This makes Tamil Nadu a unique des na on for developing electric
mobility ecosystems.
The term EVs as used in the policy refers to ba ery electric vehicles
(BEV), plug-in electric vehicles (PEV), plug-in hybrid electric vehicles (PHEV)
and strong hybrid electric vehicles (SHEV).
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VII. Objec ves of EV Policy
iii) Create a pool of skilled workforce for the EV industry through the
technical ins tu ons available in the State and create new jobs in
the EV industry.
iv) Make Tamil Nadu the preferred des na on for Electric Vehicles
and component manufacturing units including ba ery and
charging infrastructure.
vi) Recycle and reuse used ba eries and dispose the rejected
ba eries in an environment friendly manner to avoid pollu on.
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VIII. Policy Measures
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IX. Demand-Side Incen ves
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iii) Waiver on Registra on charges/fees will be done as per
Government of India's no fica on.
E. Incen ves for Private Cars
i) Private car owners shall be encouraged to switch over to electric
cars.
ii) Waiver on Registra on charges/fees will be done as per
Government of India's no fica on.
iii) Road tax exemp on will be enhanced from 50% to 100% ll
30.12.2022.
F. Incen ves and Support for Charging Sta ons
Experience in other ci es across the globe indicates that availability of
charging sta ons is a key driver for EV adop on. The objec ve of this policy
is to create an enabling environment to provide private and public charging
infrastructure in the State. In this regard, the State Government commits to
the following:
I) Adequate policy support will be provided for the development of
charging infrastructure in ci es and other places.
ii) The State will invest in se ng up charging sta ons, with the ac ve
par cipa on of public sector units including TANGEDCO and
private players.
iii) The Government will develop schemes with appropriate capital
subsidy to enable private operators to set up public charging
sta ons.
iv) Provision for charging sta ons will be made in commercial
buildings such as hotels, shopping malls, cinema halls, apartments,
etc.
v) The Government will take effort to set up 3*3 Grid charging
sta ons in Chennai, Coimbatore, Trichy, Madurai, Salem and
Tirunelveli.
vi) One charging sta on will be set up at 25 km intervals on both sides
of NHAI and State Highways.
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vii) Charging points will be provided in the Government office parking
lots in Chennai, Coimbatore, Madurai, Trichy, Salem, Tirunelveli
and other places based on the requirements.
viii) TANGEDCO will invest in se ng up both slow and fast charging
networks in Government buildings and other public places.
ix) TANGEDCO will setup the charging infrastructure on its own or
through private operators using appropriate Public Private
Partnership models.
x) EV charging service providers can also setup their own renewable
energy genera ng sta ons at their premises for charging Electric
Vehicles.
xi) The tariff applicable for domes c consump on shall be applicable
for Private Charging Sta on at home and classified as LT Tariff-IA-
230 Volt /415 Volt as per Tariff order T.P.No:1 of 2017 dt
11.08.2017 (LT Tariff-IA). Typically, most of the slow charging or
overnight charging for EV (2 Wheelers, 3 Wheelers or small 4
Wheelers) may be done from this domes c service connec on.
Private charging in case of Offices, Malls, Gated Community, etc
can be done in the common supply with the LT Tariff-V of
TANGEDCO.
xii) Tariff for the supply of electricity to Public Charging Sta ons (PCS)
will be determined by TNERC and it will be endeavoured to fix the
tariff as not more than the 15% above the average cost of supply.
xiii) Supply of Renewable Energy will be ensured on preferen al basis
at for EV charging sta ons with zero connec on cost.
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X.Supply-Side Incen ves to Promote EV
Manufacturing Within Tamil Nadu
The condi on of eligibility for availing incen ves under the special
package shall be that the units engaged in EV, their component or charging
infrastructure manufacture shall make investments above ₹50 crore
(₹ 500 million) and create at least 50 direct jobs in the form of new projects
or expansion projects. Investments made from April 1, 2018 will be
considered eligible for availing incen ves. The incen ves will include the
following:
A. Reimbursement of SGST
100% of the SGST paid on the sale of EVs manufactured, sold and
registered for use in the State will be reimbursed to the manufacturing
companies. The reimbursement will be given for sales by manufacturers
effec ve ll 31.12.2030. The reimbursement will be given up to 100% of
the eligible investment.
B. Capital Subsidy
In the case of intermediate products used in the manufacture of EV
and charging infrastructure, where SGST reimbursement is not applicable, a
capital subsidy of 15% will be given on eligible investments over 10 years.
The capital subsidy will be payable on eligible investments made in the State
ll 31.12.2025. The cost of land shall not exceed 20% of the total eligible
investments reckoned for the purpose of capital subsidy.
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C. Electricity Tax Exemp on
EV related and charging infrastructure manufacturing industries in
the State will be provided 100% exemp on on electricity tax ll
31.12.2025.
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F. Employment Incen ve
EV related and charging infrastructure manufacturing units will be
provided an employment incen ve in the form of the reimbursement of
employer's contribu on to the EPF for all new jobs created ll 31.12.2025.
This incen ve shall be paid for a period of one year and shall not exceed
₹48000 per employee.
The Government will also promote Logis c Parks and Free Trade
Warehousing Zones for be er inventory management. Further, Plug and
Play manufacturing facili es will be created where vendors and OEMs can
commence produc on with minimal capital investment in land and building.
J. Transi on Support
With a view to assis ng exis ng investors to transi on into the EV
manufacturing system, the principle of maintaining base volume produc on
for expansion projects will not be applicable for EV manufacturers. Further,
exis ng automobile manufacturing companies will be provided a one- me
re-skilling allowance for every exis ng employee in the produc on line.
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EV sector also. All investment proposals under the EV sector will be
provided the necessary facilita on through the Single Window Clearance
facility.
In order to dis nguish the Electric Vehicles (ba ery operated vehicles)
from other vehicles, Registra on Mark (Vehicle number plate) shall be
exhibited in yellow colour on a green background for transport vehicles and
white colour on green background for all other EVs. All the vehicles should
fulfil condi ons s pulated to register under Central Motor Vehicle Rule.
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XII. City Building Codes
ii) All exis ng apartment associa ons with 50+ families will be
encouraged to provide charging points in parking lots.
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Tamil Nadu Skill Development Corpora on (TNSDC), in the lines of
Na onal Skill Development Corpora on (NSDC), is a not-for-profit
company under Companies Act, 2013 that was established in 2013 to
provide skill training to the required industries. This will provide the
finishing and short term skilling to the exis ng technical person on the EV
based on the skill qualifica on approved by NSDC.
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XIV. Steering Commi ee for EV and
Charging Infrastructure
Ø Chairman, TANGEDCO
Ø Commissioner of Transport
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XV. Implemen ng Agencies
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XVI. R&D and Business Incuba on
A. Working Group
The Government of Tamil Nadu will cons tute Working Groups for
development of necessary technologies from concept to market in the areas
of Drive Technologies, Ba ery Technologies, Charging Infrastructure and
Network Integra on, Standards and Cer fica on; Materials and Recycling;
Quality and Training, etc.
B. Centre of Excellence
The State Government will partner with premier Technical Ins tutes
and research establishments across the State for establishing Centres of
Excellence for conduc ng market focussed research on Ba ery
Technologies, Ba ery Management, EV Motors and Controllers. The State
Government will seek industry par cipa on and leverage with Government
Of India to provide grant to these centres. Research programs in
collabora on with EV industry with a focus on ba ery innova on will be
introduced in Engineering Colleges / Universi es.
C. Incuba on Centres
The Government of Tamil Nadu will encourage start-ups in the E-
Vehicle sector and will offer incuba on services to them in the form of office
space, common facili es and mentoring support.
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XVII. Recycling Ecosystem-Ba ery and EVs
The Tamil Nadu Electric Vehicle Policy and package of incen ves and
concessions shall come into effect from the date of issue of Government
Order and will be valid for a period of ten years or ll a new Policy is
announced.
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