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Tamil Nadu (TN) Electric Vehicle Policy_19.09.2019

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Government of Tamil Nadu has released Electric Vehicle Policy - 2019 to encourage, promote and develop EV ecosystem within the State and in-country. Blu-Smart has highlighted major terms and clauses like road tax exemptions, subsidies to the manufacturers and incentives given. (Click here to read more.)

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Tamil Nadu (TN) Electric Vehicle Policy_19.09.2019

  1. 1. Tamil Nadu EV Policy - 2019 Salient Features
  2. 2. SINGLE AXIS TRACKER- TYPE & TECHNOLOGIES Preamble Tamil Nadu, Asia’s most preferred Investor destination, contributing 8.4 % of India’s GDP has a highly developed industrial eco-system and is very strong in sectors like automobiles and auto-components & also TN is the leader in RE with an installation base of 12,180 MW. The registered motor vehicles have shown a compounded annual growth rate (CAGR) of 12.4% over the last 3.5 decades. Further, TN accounts for 6.4% electric vehicles sold in India. Scope of the policy: Covers Battery EVs and Hybrid EVs. The policy is valid for the period of 10 years or till a new policy is announced. Policy Measures: Conversion into EVs will be encouraged through various fiscal concessions and creation of charging network for the following classes of vehicle:  Electric Cars and Two wheelers  EVs in Shared Mobility  EVs in Public Transport  EVs in Educational Institutions.  EVs in Goods Carrier
  3. 3. Demand Side Incentive: Incentives for purchase of Electric Two Wheelers, Three Seater Auto Rickshaws, Transport Vehicles such as Taxi, Tourist Cars, etc., Light Goods Carriers (including Three Wheelers), Private Cars :  100% Road Tax exemption till calendar year 2022.  Registration charges waived off as per GoI notification.  Permit fees waived off for all commercial vehicles In addition, State Transport Undertakings (STU) will be provided with subsidy to enable purchase of EV buses. Incentives and Support for Charging Stations: Active Participation of public sector units including TANGEDCO and private players to build a charging station (3*3 grid charging station) in 6 major cities and one charging station each at every 25 km intervals on both sides of NHAI and State Highways. Capital subsidy for setting up charging stations will be announced.
  4. 4. Applicable Tariff The Applicable Tariff (As per Tariff order , T.P. No.1 of 2017 dated 11-08-2017 ) are as follows: Private Charging Stations (Domestic) Rs. 1.50 to Rs.5.00 per unit based on the unit consumed. Private Charging Stations (Commercial) at Offices, Malls, Gated Community etc. Rs. 5.00 to Rs.8.05 per unit based on the unit consumed. Public Charging Stations not more than the 15% above the average cost of supply & Will be determined by TNERC. www.tnerc.gov.in › orders › 2017 › TariffOrder › TANGEDCO-11-08-2017 Supply of RE will be ensured on preferential basis at for EV charging stations with zero connection cost.
  5. 5. Supply Side Incentive Reimbursement of SGST 100% Reimbursement to manufacturing companies till calendar year 2030 on sales but upto 100% of eligible investment Capital Subsidy In absence of SGST, capital subsidy of 15% will be given on eligible investments in the state over 10 years till calendar year 2025. The cost of land shall not exceed 20% of the total eligible investments. Electricity Tax Exemption 100% till calendar year 2025 for EV manufacturing or setting up of charging infra Stamp Duty Exemption 100% till calendar year 2022 for land (sale or lease) for EV manufacturing or setting up of charging infra Subsidy on cost of Land 15% subsidy on the cost of land & 50% subsidy if the investment is in Southern districts. Subsidy will be available on allotments made till calendar year 2022. Employment Incentive Reimbursement of employer's contribution to the EPF for all new jobs created till Calendar year 2025. This incentive shall be paid for a period of one year and shall not exceed ₹48000 per employee. Special Incentive for MSME Sector Additional Capital Subsidy of 20% over and above of existing capital subsidy. 6% interest subvention will be provided against 3% under the existing scheme for availing loans from Tamil Nadu Industrial Investment Corporation. Transition Support Existing automobile manufacturing companies will be provided a onetime re-skilling allowance for every existing employee in the production line.
  6. 6. Others Implementing / Nodal Agencies :  The Industries Department for all manufacturing related Incentives.  The Energy Department for all types charging stations.  The Transport Department for issuing guidelines to achieve the other objectives of the policy. Transport Regulation for EVs : In order to distinguish the Electric Vehicles (battery operated vehicles) from other vehicles, Registration Mark (Vehicle number plate) shall be exhibited in yellow color on a green background for transport vehicles and white color on green background for all other EVs.
  7. 7. Fleet of Smart All Electric Cabs