Haryana Approves New EV Policy, Commits To 100% e-Mobility

Haryana Chief Minister Manohar Lal Khattar and his cabinet met on June 27 and approved the State Electric Vehicle (EV) Policy 2022 inviting several EV manufacturers to avail themselves of the the financial incentives offered. Haryana will observe 2022 as year of Electric Vehicles. 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 entire bus fleet owned by Haryana State Transport Undertakings will be converted into electric buses or fuel cell vehicles or other non- fossil-fuel-based technologies by 2030. 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.

Among the various financial incentives offered to EV manufacturers by the state government include the incentives on fixed capital investment (FCI), net SGST, stamp duty, employment generation, etc. What stands out is 100 per cent reimbursement of stamp duty along with exemption in electricity duty for a period of 20 years. Besides, the SGST reimbursement shall be 50 per cent of the applicable net SGST for a period of 10 years.Capital subsidy will also be given to the companies manufacturing electric vehicles, components of electric vehicle, EV battery, charging infrastructure etc depending on the classification. For example, mega industry shall get a capital subsidy at 20 per cent of FCI or Rs 20 crore whichever is lower; large industry will get subsidy of 10 per cent of FCI up to INR 10 crores, for medium industry 20 per cent of FCI up to Rs 50 lakh, for small industry 20 per cent of FCI up to Rs 40 lakh and for micro industry 25 per cent of FCI up to Rs 15 lakh.

Under this policy, the units setting up batteries disposal units will get 15 per cent 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 employed with EV companies.

The Department of Town and Country Planning (TCP) shall mandatorily spread the network of EV charging stations and build an ecosystem across Group Residential buildings, commercial buildings, institutional buildings, Malls, Metro Station etc. The policy provides one time support to facilitate conversion of existing manufacturers units completely into EV manufacturing of 25 per cent of book value up to Rs 2 crore for Micro, Small, Medium and Large units. In order to encourage the buyers to switch to EV, the policy offers the buyers incentives 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 to setup R&D centers.