Tamil Nadu Unveils New Electric Vehicle Policy, 100 Percent Road Tax Exemption

Tamil Nadu has transformed into a leading EV manufacturing hub with new entrants, including Ather and Ola Electric having set up their production facilities.

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The Tamil Nadu government on Tuesday unveiled its electric vehicle (EV) policy 2023 which aims to garner investments to the tune of Rs 50,000 crore and generate 1.50 lakh jobs, in a boost to the EV industry. Chief Minister M K Stalin formally released the new policy in the presence of government officials at the Secretariat here. The policy was launched in the backdrop of the government expecting battery operated vehicles to play a crucial role in the electrification of last mile connectivity.

"To support this goal, Tamil Nadu aims to electrify the vehicular fleets operating in the State by leveraging its vibrant automotive ecosystem comprising original equipment manufacturers, auto component ancillaries, highly skilled workforce and robust R&D capabilities," the policy document said.

During the last five years, the state has transformed into a leading EV manufacturing hub with new entrants including Ather Electric and Ola Electric having set up their production facilities.

According to the policy, Tamil Nadu has signed memorandum of understandings with companies committing investments of nearly Rs 24,000 crore and employment potential of 48,000 jobs in the EV value chain.

The state government is cognizant of the sectoral challenges and seeks to address these through interventions mapped out across the supply, demand and ecosystem segments in this policy.

"Tamil Nadu has a vision of attracting Rs 50,000 crore worth of investments in EV manufacturing, creation of 1.5 lakh new jobs, and development of a robust EV ecosystem in the State," the document read.

The new policy shall be valid for a period of five years. It also mentioned that the government would encourage adoption of electric vehicles in the state with 100 per cent road tax exemption among others.

"100 per cent road tax exemption will be provided till December 31, 2025 for the EV battery operated vehicles -- two wheelers, private cars, three-seater auto-rickshaws, transport vehicles, light goods carriers."

The state government would develop industry-academia linkages to create a skilled workforce pool for EVs besides promoting Chennai, Coimbatore, Tiruchirappalli, Madurai, Salem, Tirunelveli as pilot cities for implementing 'e-mobility solutions'.

The policy also proposes to support electrification of commercial and public transport fleets. It offers several incentives to companies engaged in manufacturing of EVs including, 'reimbursement of SGST', turnover-based subsidy and capital subsidy.

Electric vehicle projects undertaken by the company would be entitled to 100 per cent exemption on stamp duty on purchase or lease of land obtained from the government. State Transport Undertaking operated buses which constitute a substantial percentage of the public transport India would be electrified through a phased augmentation and replacement plan. "The state shall endeavour to increase the share of electric buses to 30 per cent of the fleet by 2030", the policy said.