The State Electric Vehicle (EV) Policy 2022, which offers EV manufacturers several financial incentives, was sanctioned by the Haryana government on June 28th.
The state cabinet met under the leadership of chief minister Manohar Lal Khattar and decided during that meeting.
The New Policy Roll Out
According to an official statement, the EV policy provides financial rewards to EV automakers through fixed capital investment (FCI), net SGST, stamp duty, and employment generation incentives. In addition to receiving a 20-year electricity duty exemption and a 100% refund of stamp duty,
For ten years, 50% of the applicable net SGST will get reimbursed as SGST. Companies producing EV vehicles, electric vehicle components, batteries for e-vehicles, charging infrastructure, and so forth will receive capital subsidies as incentives.
Mega industries will receive capital subsidies at a rate of 20% of FCI (fixed capital investment) or INR 20 crore, whatever is lesser. Similarly, FCI incentives are available to large industries at a rate of 10% of the FCI up to INR 10 crores. Medium-sized companies will receive 20% of FCI up to INR 50 lakh. Micro industries will receive 25% FCI up to INR 15 lakh, and small companies will receive 20% FCI up to INR 40 lakh.
Following the state government’s new policy, early EV buyers can receive discounts up to Rs 70 lakh.
According to this policy, units establishing battery disposal facilities will receive 15% of FCI up to Rs 1 crore.
According to the policy, Haryana-resident workers who work for EV companies will receive an employment generation subsidy of Rs. 48,000 per employee, per year, for ten years.
The Haryana State Transport Undertaking plans to convert all its buses to electric, fuel cell, or other non-fossil fuel-based technologies by 2030. Gurugram and Faridabad will get designated as prototype Electric Mobility (EM) cities. They will have goals to adopt EVs and charging infrastructure in phases to achieve 100% e-mobility.
In addition, the Department of Town and Country Planning (TCP) shall require the inclusion of provisions for electric vehicle charging in locations including group residential buildings, commercial properties, institutional establishments, malls, metro stations, etc., to facilitate the overall ecosystem for the uptake of electric vehicles.
Haryana will designate 2022 as the “Year of the Electric Vehicles.”
The EV Policy seeks to safeguard the ecosystem, lessen carbon emissions, transform Haryana into a hub for EV production, guarantee skills training in the EV industry, promote the use of EV vehicles, provide Electric vehicle charging infrastructure, and promote R&D in EV technology.
One-time support will facilitate the conversion of existing manufacturing units into EV manufacturing of 25% of book value up to Rs 2 crore for Micro, Small, Medium, and Large units.
But the cost of an electric vehicle is significantly greater than the price of conventional fuel-based automobiles, which discourages buyers from switching to EVs. The policy offers buyers incentives that would lower the upfront cost and encourage people to use electric vehicles as their means of transport.
When buying electric or hybrid electric vehicles in the state, the policy will offer early bird direct benefit transfers up to Rs 10 lakh. Additionally, purchasers get qualified for a reduction in the registration fee and the motor vehicle tax.
R&D in educational or research institutes is encouraged if they set up R&D centers.
- EVs priced up to Rs 70 lakh are eligible for a 15% discount.
- Hybrid vehicles under Rs 40 lakh will be eligible for a discount of up to Rs 3 lakh.
- Only early bird purchasers may take advantage of these discounts; later, they will no longer be available.
- Additionally, EV buyers will receive a 100% motor vehicle tax rebate and a reduction in registration costs.
- Generous incentives for OEMs( original equipment manufacturers), small, medium, and large-scale producers of EV parts.
The state’s electric vehicle (EV) policy, which provides various incentives and concessions to EV buyers and manufacturers, has been approved by the Haryana government. In addition, the government offers significant, time-limited discounts on brand-new electric cars costing up to Rs 70 lakhs, which goes above and beyond FAME-II subsidies.