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State Policies
Electronics
Tamil Nadu Electric Vehicle
Policy 2019
10 min read
This Policy is applicable for supply side projects engaged in manufacturing/ assembly of Electric Vehicles & Battery, from April 1, 2018. On the demand side, the policy supports adoption of electric vehicles and setting up charging stations.
Contents
  1. Policy Targets
  2. Demand Side Interventions
  3. Supply Side Interventions
Policy Targets
The Tamil Nadu Electric Vehicle Policy 2019 aims to attract Rs. 50,000 crore of investment in EV manufacturing and creating 1.5 lakh new jobs.
INR 50,000 crore
Investment in EV Manufacturing
1.5 lakh
Creating New Jobs
Demand Side Interventions
Public Transport
Shared Mobility
Personal Mobility & Commercial Vehicles
Charging Infrastructure
Transition Strategy for Electric Buses State Transport Undertakings (Transport Department/MTC) will strive to replace around 5% of the buses as EV every year and around 1000 EV buses may be introduced every year.
Opportunities for EV Bus Manufacturers
  • TN government signed a project agreement with German State-owned development bank KfW to acquire another 500 electric buses for the State.
  • Tenders will be issued by the Transport Department
  • Promotion of conversion of all Auto Rickshaws in six major cities - Chennai, Coimbatore, Trichy, Madurai, Salem and Tirunelveli, to EVs within a span of ten years. This will be extended to other cities and towns in a gradual manner
  • Support for conversion of all taxis and app-based transport operators and aggregators in the six major cities to EVs within a span of ten years.
  • 100% road tax exemption will be provided till 30.12.2022.
  • Waiver on Registration charges/fees will be done as per Government of India’s notification
  • Adequate policy support will be provided for the development of charging infrastructure in cities and other places.
  • Government will develop schemes with appropriate capital subsidy to enable private operators to set up public charging stations.
Demand Side Interventions
Public Transport
Transition Strategy for Electric Buses State Transport Undertakings (Transport Department/MTC) will strive to replace around 5% of the buses as EV every year and around 1000 EV buses may be introduced every year.
Opportunities for EV Bus Manufacturers
  • TN government signed a project agreement with German State-owned development bank KfW to acquire another 500 electric buses for the State.
  • Tenders will be issued by the Transport Department
Shared Mobility
  • Promotion of conversion of all Auto Rickshaws in six major cities - Chennai, Coimbatore, Trichy, Madurai, Salem and Tirunelveli, to EVs within a span of ten years. This will be extended to other cities and towns in a gradual manner
  • Support for conversion of all taxis and app-based transport operators and aggregators in the six major cities to EVs within a span of ten years.
Personal Mobility & Commercial Vehicles
  • 100% road tax exemption will be provided till 30.12.2022.
  • Waiver on Registration charges/fees will be done as per Government of India’s notification
Charging Infrastructure
  • Adequate policy support will be provided for the development of charging infrastructure in cities and other places.
  • Government will develop schemes with appropriate capital subsidy to enable private operators to set up public charging stations.
Supply Side Interventions
Electric Vehicles Manufacturing
EV Components
Battery Manufacturing
EV Parks
MSMEs
  • SGST Reimbursement - 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 upto 100% of eligible investment till 31.12.2030.
  • Capital Subsidy – 15% of eligible investments over 10 years investments made till 31.12.2025 (land should not exceed 20% of total eligible investment).
  • Electricity Tax Exemption - 100% exemption on electricity tax till 31.12.2025.
  • Stamp Duty - 100% exemption on stamp duty for transactions till 31.12.2022.
  • Subsidy on Cost of Land - 15% subsidy on the cost of land obtained from Governmental agencies; 50% subsidy if the investment is in Southern districts for allotments made till 31.12.2022.
  • Employment Incentive – INR 48,000 per employee for one year in the form of EPF contribution for all new jobs created till 31.12.2025.
  • Capital Subsidy – 15% of eligible investments over 10 years investments made till 31.12.2025 (land should not exceed 20% of total eligible investment).
  • Electricity Tax Exemption - 100% exemption on electricity tax till 31.12.2025.
  • Stamp Duty - 100% exemption on stamp duty for transactions till 31.12.2022.
  • Employment Incentive – Rs. 48,000 per employee for one year in the form of EPF contribution for all new jobs created till 31.12.2025.
  • Capital Subsidy – 20% of eligible investments over 20 years investments made till 31.12.2025.
  • Subsidy on Cost of Land - 25% subsidy on the cost of land obtained from Governmental agencies; 50% subsidy if the investment is in Southern districts for allotments made till 31.12.2025.
  • Electricity Tax Exemption - 100% exemption on electricity tax till 31.12.2025.
  • Stamp Duty - 100% exemption on stamp duty for transactions till 31.12.2022.
  • Employment Incentive – Rs. 48,000 per employee for one year in the form of EPF contribution for all new jobs created till 31.12.2025.
Exclusive EV parks with common facilities to be developed in major auto manufacturing hubs and in areas which have potential to attract EV investments.
  • Additional capital subsidy of 20% over and above the eligibility limit for capital subsidy for MSME E-vehicle component or charging infrastructure manufacturers (i.e. effective rate 18%) set up till 31.12.2025.
  • 6% interest subvention provided as against 3% under the existing scheme for Medium category industries that avail loans from Tamil Nadu Industrial Investment Corporation set up till 31.12.2025.
Supply Side Interventions
Electric Vehicles Manufacturing
  • SGST Reimbursement - 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 upto 100% of eligible investment till 31.12.2030.
  • Capital Subsidy – 15% of eligible investments over 10 years investments made till 31.12.2025 (land should not exceed 20% of total eligible investment).
  • Electricity Tax Exemption - 100% exemption on electricity tax till 31.12.2025.
  • Stamp Duty - 100% exemption on stamp duty for transactions till 31.12.2022.
  • Subsidy on Cost of Land - 15% subsidy on the cost of land obtained from Governmental agencies; 50% subsidy if the investment is in Southern districts for allotments made till 31.12.2022.
  • Employment Incentive – INR 48,000 per employee for one year in the form of EPF contribution for all new jobs created till 31.12.2025.
EV Components
  • Capital Subsidy – 15% of eligible investments over 10 years investments made till 31.12.2025 (land should not exceed 20% of total eligible investment).
  • Electricity Tax Exemption - 100% exemption on electricity tax till 31.12.2025.
  • Stamp Duty - 100% exemption on stamp duty for transactions till 31.12.2022.
  • Employment Incentive – Rs. 48,000 per employee for one year in the form of EPF contribution for all new jobs created till 31.12.2025.
Battery Manufacturing
  • Capital Subsidy – 20% of eligible investments over 20 years investments made till 31.12.2025.
  • Subsidy on Cost of Land - 25% subsidy on the cost of land obtained from Governmental agencies; 50% subsidy if the investment is in Southern districts for allotments made till 31.12.2025.
  • Electricity Tax Exemption - 100% exemption on electricity tax till 31.12.2025.
  • Stamp Duty - 100% exemption on stamp duty for transactions till 31.12.2022.
  • Employment Incentive – Rs. 48,000 per employee for one year in the form of EPF contribution for all new jobs created till 31.12.2025.
EV Parks
Exclusive EV parks with common facilities to be developed in major auto manufacturing hubs and in areas which have potential to attract EV investments.
MSMEs
  • Additional capital subsidy of 20% over and above the eligibility limit for capital subsidy for MSME E-vehicle component or charging infrastructure manufacturers (i.e. effective rate 18%) set up till 31.12.2025.
  • 6% interest subvention provided as against 3% under the existing scheme for Medium category industries that avail loans from Tamil Nadu Industrial Investment Corporation set up till 31.12.2025.
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