The Tamil Nadu Government has announced a slew of measures to give a big push to electric vehicles in the State.
The policy unveiled by Chief Minister Edappadi K Palanisami on Monday includes tax cuts and cheap land for units coming to set up e-vehicles in the State. The incentives include complete exemption from State GST and road tax.
It envisages conversion of all commercial vehicles like buses, taxis and auto-rickshaws in Chennai, Coimbatore, Tiruchi, Madurai, Salem and Tirunelveli in the next ten years.
State transport buses will be charged at depots using three-phase connections. Private bus operators will also be encouraged to convert their vehicles to e-buses. For the benefit of private vehicles, grid charging system will be set up in every 25 km in the six cities.
The tax incentives include complete exemption from road tax till the end of 2022 and registration charges for electric autos and taxis.
Manufacturers of EVs who set up their units in industrial estates will be given 15 per cent subsidy on land prices. The subsidy will be 50 per cent for units to be set up in industrially backward southern Tamil Nadu.
The Government has also lowered the quantum of investment needed to be eligible for incentives to just Rs 50 crore against Rs 250 crore in other States, provided such units create at least 50 jobs each. The incentive will be with retrospective from April 2018.