Haryana Electric Vehicle (EV) Policy, 2022; Several Incentives For Manufacturers And Buyers

The Haryana Government has approved the Haryana Electric Vehicle (EV) Policy, 2022, declaring 2022 as the "Year of the Electric Vehicles" in Haryana. "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 Haryana government in a press release issued on 27th June said. The policy envisions 100% conversion of bus fleets owned by the Haryana State Transport Undertakings into electric buses, Fuel Cell Vehicles or other non-fossil-fuel-based technologies by 2030. The cities of Gurugram and Faridabad would be declared as model Electric Mobility (EM) cities. To achieve 100% e-mobility, phase-wise goals would be followed to adopt Electric Vehicles (EVs) and charging infrastructure. Also, for enabling a conducive ecosystem for use of Electric Vehicles, the Department of Town and Country Planning (TCP) would be mandatorily required to include amenities and provisions for charging of electric vehicles in Group Residential buildings, commercial buildings, institutional buildings, Malls, Metro Station, etc. New manufacturing in EV technology is encouraged under the policy, with existing automobile manufacturers also encouraged to diversify by manufacturing of Electric Vehicles. EV manufacturers would be granted various financial incentives under the policy, including incentives on Fixed Capital Investment (FCI), Net SGST and Stamp Duty. EV manufacturers would get a 100% reimbursement of Stamp Duty. Also, Electricity Duty would be exempted for a period of 20 years. 50% of the applicable Net SGST would be reimbursed for a period of 20 years. Capital subsidy would be granted to companies manufacturing electric vehicles, components of electric vehicles, EV battery, charging infrastructure, etc., which would vary with different industries. Mega Industry would get capital subsidy at 20% of Fixed Capital Investment (FCI) or Rs. 20 Crore, whichever is lower. Large Industries would get a subsidy of 10% of FCI up to Rs.10 Crore, while Medium Industry would get a subsidy of 20% of FCI up to Rs. 50 Lakh. Small Industry would get 20% of FCI up to Rs. 40 lakh, and Micro Industry would be granted 25% of FCI up to Rs. 15 Lakh, as subsidy. Also, subsidy of 15% of FCI up to Rs. 1 Crore would be granted to units that set up battery disposal units. Additionally, to facilitate conversion of existing manufacturing units completely into EV manufacturing, a one-time support of 25% of book value up to Rs. 2 Crore would be provided to Micro, Small, Medium and Large units. To motivate individuals to take up electric vehicles as their primary mode for transportation, the policy would offer incentives to buyers that would reduce the effective upfront cost of the EVs. The policy would provide an early bird direct benefit transfer of up to Rs. 10 Lakh on purchase of Electric Vehicles or Hybrid electric Vehicles in the state, with buyers also eligible for relaxation in registration fee and discount on Motor Vehicle Tax. The policy also encourages Research and Development (R&D) in the field of EVs. To promote R&D in EVs, 50% of project cost up to Rs. 1 Crore would be granted for developing new electric charging technology, and up to Rs. 5 Crore would be granted for developing new electric vehicle technology. Also, a grant of 5 Crores would be provided to Institutes conducting dedicated research on non-fossil-fuel based mobility solutions. A one-time subsidy of Rs. 25 Lakh shall be extended to first 20 colleges/ITIs/ polytechnics for setting up infrastructure related to R&D of EV. To encourage Government organizations, PSUs and private companies to set up Centre of Excellences (CoE), a 50% grant of project cost up to Rs. 5 Crore would be conferred. Also, an Employment generation subsidy of Rs. 48,000 per employee per annum for 10 Years would be provided under the EV policy in lieu of Haryana domiciled manpower being employed with EV companies. Click Here To Read/Download Press Release

Haryana Electric Vehicle (EV) Policy, 2022; Several Incentives For Manufacturers And Buyers

Parina Katyal

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Parina Katyal

Haryana Electric Vehicle (EV) Policy, 2022; Several Incentives For Manufacturers And Buyers

Parina Katyal

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INR 1099+GST

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Parina Katyal

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