Karnataka Electric Vehicles and Energy Storage Policy 2017

Karnataka Electric Vehicles and Energy Storage Policy 2017 seeks to leverage the advantages and opportunities available for the continued growth of this promising sector in order to make Karnataka a preferred investment destination for the manufacturing of electric vehicles.

·         To make Karnataka a preferred destination for attracting investments in the manufacture of EVs

·         To attract investments of Rs 31,000 crores and create employment opportunities for 55,000 personas from both supply and demand side.

·         To provide opportunities for R&D in electric mobility

·         To promote a conducive manufacturing ecosystem in collaboration with the industry.

According to the Karnataka Budget 2020–21, the state intends to create a "Cluster for Manufacturing of Electric Vehicles and Energy Storage" and has set aside a grant of Rs. 10 crores for this purpose.

Under the FAME-2 scheme of the Government of India, 300 air-conditioned electric buses are being added to the fleet of Bengaluru Metropolitan Transport Corporation. On these lines, State Government is providing a grant of Rs.100 crore for adding 500 ordinary electric buses to the fleet of the corporation.

Policy Measures

BMTC, KSRTC, NWKSRTC, and NEKRTC are to introduce 1,000 EV buses during the policy period.

·         Intends to achieve 100% e-mobility in auto rickshaws, cab aggregators, corporate fleets, and school buses/vans by 2030. Retrofitting of Existing auto rickshaws will be encouraged.

·         State Government will make industrial land available for establishing EV Parks and Zones, and setting up necessary infrastructure through PPP mode.

·         Government will identify potential land on a long lease basis for setting up EV charging stations and battery swapping infrastructure. Also, will offer incentives for setting up the first lot of 100 fast charging stations.

Incentives and Concessions to Electric Vehicle & Components Manufacturing Enterprises

All the EV manufacturing Enterprises will be eligible for the incentives and concessions.

The State has set itself a target of inviting investments in setting up to 5 GWh of EV Battery manufacturing capacity which is expected to generate 5,000 direct employments in this industry and around 7,500 more in the overall EV Battery manufacturing/Assembly supply chain. All the EV Battery manufacturing/ Assembly Enterprises will be eligible for the incentives and concessions.

Manufacturing Enterprises of components required for Electric Vehicles such as Motors, Power Trains, Power Electronics kits, etc. will be eligible for incentives and concessions as per the policy subject to the approval of the Technical Committee which would be substituted & mandated to define/certify EV component manufacturing enterprises. The following incentives & concessions Will be offered:

A Micro, Small & Medium Enterprises –

Investment Promotion Subsidy

·         Micro Enterprises 25% of the Value of Fixed Assets (VFA) (max. Rs. 15.00 lakh)

·         Small Enterprises 20% of the Value of Fixed Assets (VFA) (max. Rs.40.00 lakh)

·         Medium Manufacturing Enterprises Rs.50.00 lakh

Exemption from Stamp Duty

100% Stamp duty to be paid in respect of:

·         loan contracts, credit deeds, mortgages, and hyphenation deeds signed in order to obtain loans from the state government, state financial corporation, commercial banks, regional reserve banks, cooperative banks, KVIB/KVIC, the state of Karnataka SC/ST Development Corporation, the state of Karnataka State Minority Development Corporation, and other institutions as may from time to time be notified by the government.

·         lease deeds, lease-cum-sale deeds, sublease deeds, and absolute sale deeds executed in relation to industrial plots, sheds, and tenements by KIADB, KSSIDC, KEONICS, Industrial Co-operatives, and authorized private industrial estates/parks shall be exempt.

Concessional Registration Charges

For all loan documents, lease deeds, and sale deeds as specified in B above, the registration charges shall be at a concessional rate of Rs.1 per Rs.1000.

Reimbursement of Land Conversion Fee

10096 of the land conversion fees for converting the land from agricultural use to industrial use will be reimbursed.

Subsidy for Setting up Effluent Treatment Plant (ETP)

One-time capital subsidy up to 5096 of the cost of ETP, subject to a ceiling of Rs. 50 lakhs.

Exemption from Tax

On Electricity Tariff 10096 exemption of duty/tax on electricity tariff for the initial period of five years.

Subsidy for setting up Effluent Treatment Plants

Interest-free loans on NET SGST

Policy Document