Haryana Government Approves State EV Policy, Announces SOPs to Manufacturers

The Haryana government on Monday approved the State Electric Vehicle (EV) Policy 2022 offering several financial incentives to EV manufacturers. A decision in this regard was taken at a meeting of the state cabinet which met here under the chairmanship of Chief Minister Manohar Lal Khattar.

The EV policy offers various financial incentives to EV manufacturers by giving incentives on fixed capital investment (FCI), net SGST, stamp duty, employment generation, an official statement said.

There is 100 percent reimbursement of stamp duty along with exemption in electricity duty for a period of 20 years.

The SGST reimbursement shall be 50 percent of the applicable net SGST for a period of 10 years. Companies manufacturing electric vehicles, components of electric vehicle, EV battery, charging infrastructure shall be incentivised with capital subsidy.

Mega industry shall get capital subsidy at 20 percent of FCI or Rs. 20 crore whichever is lower; large industry will get subsidy of 10 percent of FCI up to Rs. 10 crores, for medium industry 20 percent of FCI upto Rs. 50 lakh, for small industry 20 percent of FCI up to Rs. 40 lakh and for micro industry 25 percent of FCI up to Rs. 15 lakh.

Under this policy, setting up batteries disposal units will get 15 percent of FCI up to Rs. 1 crore.

The policy provides for employment generation subsidy of Rs. 48,000 per employee per annum for 10 years in lieu of Haryana domiciled manpower being employed with EV companies.

Efforts shall be made to convert 100 percent of the bus fleet owned by Haryana State Transport Undertakings into electric buses or Fuel Cell Vehicles or other non- fossil-fuel-based technologies by 2030.

The cities of Gurugram & Faridabad will be declared as model Electric Mobility (EM) cities with phase-wise goals to adopt Electric Vehicles (EVs), charging infrastructure to achieve 100 percent e-mobility.

In addition to this, the Department of Town and Country Planning (TCP) shall mandately include the provisions for charging of electric vehicles in places such as Group residential buildings, commercial buildings, institutional buildings, malls, metro stations, for enabling the overall ecosystem for uptake of Electric Vehicles.

The year 2022 will be declared as ‘Year of the Electric Vehicles’ in Haryana.

The EV Policy aims to protect the environment, reduce carbon footprint, make Haryana an EV manufacturing hub, ensure skill development in EV field, encourage uptake of EV vehicles, provide EV charging infrastructure and encourage R&D in EV technology.

The policy provides one time support to facilitate conversion of existing manufacturers units completely into EV manufacturing of 25 percent of book value up to Rs. 2 crore for Micro, Small, Medium and Large units.

The cost of an electric vehicle is comparatively higher than conventional-fuel-based vehicles which is a major deterrent to buyers in switching to EV, said the statement.

The policy offers incentives to buyers that would reduce the effective upfront cost and motivate individuals to take up electric vehicles as their primary mode for transportation.

The policy will provide early bird direct benefit transfer up to Rs. 10 lakh on purchase of Electric Vehicles or Hybrid electric Vehicles in the state. Buyers will also be eligible for relaxation in registration fee and discount on Motor Vehicle Tax.

The policy encourages R&D in educational or research institutes if they setup R&D centers.

The policy will promote Research & Development in the field of EVs by granting 50 percent of project cost up to Rs. 1 crore for developing new electric charging technology and up to Rs. 5 crore for developing new electric vehicle technology.

Institutes conducting dedicated research on non-fossil-fuel based mobility solution will be provided with Rs. 5 crore grant. One time subsidy of Rs. 25 lakh shall be extended to first 20 colleges/Industrial Training Institutes / polytechnics for setting up infrastructure related to R&D of EV.

Government organisations, PSUs, private companies shall be encouraged to set up Center of Excellence (CoE) that shall be incentivised with a 50 percent grant of project cost up to Rs. 5 crore.