Karnataka's new e-mobility strategy intends to invest Rs 50,000 crore

 Karnataka's new e-mobility strategy intends to invest Rs 50,000 crore

The state hopes to provide employment chances for one lakh people with this initiative.

Karnataka is the third-highest state in the country for EV registrations, with over 2.5 lakh registered EVs and 700 charging stations (Representational photo).

On November 10, the Karnataka state government presented a revised draft EV policy (2022–28) in an effort to build a strong environment for EVs.

The initiative intends to provide employment possibilities for one lakh people and draw in an investment of Rs 50,000 crore.

"MB Patil, Karnataka's secretary for large and medium industries along with infrastructure development, stated that this proposed policy aims to transform Karnataka toward a pioneering force in the sector of electric mobility, embracing environmentally conscious methods and equitable growth yet fostering innovation while developing a robust EV ecosystem throughout the state."

Patil said that the government will soon call a combined meeting of ministers in charge of finance, energy, transport, and urban development to discuss shared concerns prior to releasing the final e-mobility policy at an ideation session with members of the EV industry.

Patil said that the government intends to create model EV communities around the state to encourage EV adoption in response to suggestions from the EV sector. "These model cities would be created during Kalaburagi, Belagavi, Hubballi-Dharwad, and Mysuru, among others," he said.

In addition, Patil said that talks to install EV charging stations at 10 significant toll booths along the national highway between Bengaluru and Pune are now underway with the National Highway Authority of India (NHAI).

Gauribidanur (Chikkaballapur) and Chikkamalligewada (Dharwad) have been designated by the government as possible sites for the development of sizable EV clusters at competitive prices. Investors are allowed to purchase the land at these two places.

"Karnataka's present EV policy is about to expire. The industries department released a statement saying, "The state was the first in India to introduce the EV policy in 2017 and further strengthened the lure in 2021 to ensure maximum benefit to investors."

In order to attract top-tier private operators and help them establish EV testing and certification facilities, the proposed amended draft policy raises the capital subsidy for testing centers to thirty percent. The current policy caps capital subsidies at 15% and offers a 1% Production-Linked Incentive for a period of five years.

Additionally, the proposed draft policy broadens its scope to include incentives for anode, cathode, separators, strong hybrid cars, battery recycling facilities, as well as testing infrastructure related to cell components.

Ready-to-occupy land lots, ready-built factories or sheds, plug-and-play incubated facilities, testing laboratories, proving grounds, and homologation facilities are the six main parts of these clusters.

Furthermore, the government of Karnataka provides capital subsidies in the range of twenty to twenty-five percent and twenty to thirty percent, respectively, for micro and small businesses. Incentives on the value of fixed assets (VFA) for medium-sized businesses typically range from 20 to 25 percent.

For rental premises larger than 10,000 square feet, the draft suggests a rental subsidy that would repay 30% of the rent, up to a maximum of Rs 5 per square foot per month, for three years. The current policy maintains the exemption from stamp duty as it is.

The proposed amended draft policy seeks to quickly identify land parcels that are in line with power infrastructure for charging stations and provide competitive power pricing in order to hasten the adoption of EVs.

Karnataka has over 2.5 lakh registered electric vehicles (EVs) and 700 charging stations. It is the third-highest EV registration state in the country, with an 8 percent adoption rate, demonstrating the state's will to change the mobility environment.

The Industrial Training Institute (ITI) will be important for skill development, which is vital for the EV industry's progress. The proposed strategy anticipates a 40 percent reduction in skill development expenses as well as a 2-4 month reduction in training duration.