Andhra Pradesh Electric Mobility Policy 2018

The GoAP intends to accomplish its goals by placing a focus on the production of electric vehicles and their component parts, infrastructure for charging them, infrastructure for producing hydrogen and refueling them, demand generation for EVs, and research and development.

The policy outlines unique incentives and concessions, including the following, to draw investments in EV manufacturing and infrastructure:

Capital subsidy Under Andhra Pradesh Electric Mobility Policy

·         25% of Fixed Capital Investment (FCI) for Micro Industries, up to a maximum of INR 15 lakhs.

·         20% of Fixed Capital Investment for Small and Medium Industries, up to a maximum of INR 40 lakhs and INR 50 lakhs, respectively.

·         Manufacturing of electric vehicles (two-wheelers, three-wheelers, four-wheelers, buses), batteries and charging equipment, hydrogen storage, and fuelling equipment is eligible for 10% of fixed capital investment up to a maximum of INR 10 crores for the first two units in the large industries category.

·         Manufacturing of electric vehicles (2-wheelers, 3-wheelers, 4-wheelers, buses), batteries and charging equipment, hydrogen storage, and fuelling equipment is eligible for 10% of fixed capital investments up to a maximum of INR 20 crores for the first two units under the Mega category.

·         For specific clean production measures, as certified by the Andhra Pradesh Pollution Control Board (APPCB), a 35% subsidy on the cost of plant & machinery for Micro, Small & Medium Enterprises (MSME) up to a maximum of INR 35 lakhs and 10% subsidy on cost of plant & machinery for large projects up to a maximum of INR 35 lakhs.

·         25% of the total fixed capital investment of the project (excluding the cost of land, land development, preliminary and pre-operative expenses, and consultancy fees) may be subsidized for sustainable green measures in Micro Small, and Medium Enterprises (MSMEs) and large projects, up to a maximum of INR 50 crore.

·         Depending on the need for Mega, Mega Integrated Automobile Projects, and Ultra-Mega Battery Manufacturing Plants, special incentives will be given.

Marketing Incentives Under Andhra Pradesh EV Policy

A maximum of 10 MSME units may receive reimbursement for 50% of the costs associated with attending international trade fairs, up to a maximum of INR 5 lakhs annually.

Tax Incentives Under Andhra Pradesh EV Policy

For a period of five (5) years for micro and small, seven (7) years for medium, and ten (10) years for large industries, 100% of the net SGST that accrued to the State will be reimbursed. This reimbursement is only valid for the stated period or 100% of CAPEX, whichever comes first.

Skill Development Incentives Under Andhra Pradesh EV Policy

For Micro, Small, Medium, and Large firms, a stipend of INR 10,000 per employee per year, up to the first 50 employees of a single company.

Financial Incentives for Private EV Charging Stations & Hydrogen generation & Refuelling infrastructure

·         Capital Subsidy of 25% of the value of the equipment or machinery of the first 100 charging stations, up to a maximum subsidy of INR 10,00,000, is available for direct-current (DC) chargers (100V and above).

·         Direct-Current (DC)Chargers (Below 100V): Capital Subsidy of 25% of the value of the charging station equipment/machinery for the first 300 charging stations up to a maximum subsidy of INR 30,000

·         For the first 50 stations, a capital subsidy of 25% of Fixed Capital Investment (for eligible assets excluding the cost of battery inventory) is available, with a maximum subsidy of INR 10 lakhs.

·         As compensation for the purchase of fast chargers, the State will receive 100% of the net State Goods and Services Tax (SGST) that has accrued (DC chargers of capacity 100V and above).

·         100% net State Goods and Services Tax (SGST) that was accrued to the State was paid as compensation for the purchase of advanced batteries used in Battery Electric Vehicles.

·         Capital subsidy of 25% of the Fixed Capital Investment (FCI), with a maximum subsidy of INR 10 crore per unit for the first 10 units, for hydrogen generation and fueling plants.

R&D Grants

The most cutting-edge mobility solutions will be supported by a research grant of INR 500 Cr. We will also provide land and office space so that public or private research labs, incubators, and start-ups working on goods and solutions in the electric mobility space can quickly set up their facility.

The government will offer financial support for certifications of patent quality. For registering a patent, the financial assistance will be limited to 75% of the cost, up to a maximum of 25 lakhs, and for obtaining quality certification, it will be limited to 50% of all fees, up to a maximum of 5 lakhs.

Policy Document