Karnataka Clean Mobility Policy 2025-30 Aims To Attract ₹50,000 Cr

Karnataka’s Commerce and Industries Department has released the Karnataka Clean Mobility Policy 2025-30 to attract ₹50,000 crore in investments across the entire clean mobility vehicle value chain. The policy aims to generate approximately 100,000 new jobs during the policy period. It further states that Karnataka’s policy and the package of incentives and concessions will come into effect on February 11, 2025, and will remain valid for five years or until a new policy is announced.

The Karnataka latest policy mentioned, “Special Incentives Scheme for ESDM Sector (2020-2025) offers various fiscal incentives such as capital investment subsidies, reimbursement of stamp duty and registration charges, and power tariff reimbursements. Karnataka is focused on developing a dedicated Electronics Manufacturing Cluster in collaboration with the Indian Government in 3 locations – Kochanahalli – Mysuru, Kotur-Belur – Dharawad and Adinarayana hosahalli –Bengaluru Rural.

This will help foster collaboration between industry and academia ensuring a continuous supply of skilled professionals and cutting-edge research. These efforts position Karnataka as a competitive and attractive destination for ESDM investments, driving sustained
growth and innovation in the sector.

Karnataka’s Latest Industrial Policy

Karnataka’s latest industrial policy extends the following exemptions:

1. Loan agreements and credit deeds: Mortgage and hypothecation deeds executed for availing loans from the state government, including VAT/SGST loans from the department and/or State Financial Corporation, Industrial Investment Development Corporation, national-level financial institutions, commercial banks, RRBs, cooperative banks, and other institutions that may be notified by the government from time to time.

   

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2. Lease agreements: Lease deeds, lease-cum-sale agreements, sub-leases, transfers of leasehold rights, and absolute sale deeds executed for industrial plots, sheds, and industrial tenements by KIADB, KEONICS, KSIIDC, industrial cooperatives, and approved private industrial estates/parks shall be exempted.

   

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Establishment of Clean Mobility Clusters

Karnataka has also set guidelines for establishing renewable energy clusters. The policy highlights this approach as a means to expedite research, innovation, and development while optimizing supply chain operations and fostering collaboration. It has identified three key clusters:

1. Gauribidanur, Chikkaballapur – This cluster encompasses approximately 825 acres of acquired land. It is located 70 kilometers from Bengaluru and 90 kilometers from Hoskote, a prominent auto cluster housing renowned manufacturers such as Honda and Volvo.

2. Chikkamalligewada, Dharwad – The second cluster spans around 1,000 acres of land. It is conveniently positioned 30 kilometers from Hubballi Airport and 26 kilometers from the Hubli-Dharwad cluster.

   

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3. Harohalli, Ramanagara – The third cluster spans around 700 acres of land. It is 40 kilometers from Bengaluru and approximately 20 kilometers from the Bidadi auto cluster, which houses Toyota.

Additionally, the policy extends certain incentives for charging and hydrogen stations across all zones. It identifies three types of electric vehicle (EV) charging stations:

• Fast charging
• Slow charging
• Battery switching/swapping

Incentives

The notification sets a capital subsidy for fast charging stations at 25% for two-wheelers (2W), three-wheelers (3W), cars, and buses, with a maximum of ₹10,00,000 per station for 500 charging stations. However, no incentives are offered for slow charging stations.

For battery switching/swapping stations, a subsidy of ₹10,000 per 200 swaps will be provided for 2W, 3W, cars, and buses.