HARYANA ELECTRIC VEHICLE POLICY 2022

Haryana Government introduces five-year electric vehicle policy

INTRODUCTION

The Industries and Commerce Department of the Government of Haryana notified on 8 July 2022 the Haryana Electric Vehicle Policy, 2022 (EV Policy), which is effective for a period of five years commencing from 10 July 2022. The EV Policy aims to inter alia encourage and incentivize manufacturing of electric vehicles (EVs) as well as major components and batteries for EVs (EV Components) in Haryana, in addition to promoting the adoption of electric vehicles in the state.

OVERVIEW

The categories of EVs covered under the EV Policy are pure EVs (including battery powered and fuel cell EVs) and ‘strong’ hybrid EVs. While the EV Policy aims to attract investments from EV / EV Component manufacturers to set up new units in Haryana, existing units can also avail incentives by converting into EV / EV Component manufacturers, subject to the conditions laid out in the EV Policy. The EV Policy is applicable to units (new and existing) located anywhere in B, C and D industrial blocks and in government approved industrial estates / industrial model townships in A block.1 The EV Policy also includes incentives for EV buyers and seeks to promote development of charging infrastructure and research and development in the e-mobility field. The Government of Haryana proposes to play a lead role in promoting the adoption of EVs by factoring this into vehicle procurement by government departments and setting a timeline for conversion of existing fleets to EVs.

KEY FEATURE OF THE EV POLICY

Incentives for manufacturers:

Manufacturers of EVs, EV Components and EV charging infrastructure will be eligible for incentives such as:

  • Subsidy for early adopters on fixed capital investment ranging from 10% to 25% of the total fixed capital investment depending on the size of the unit, but subject to stipulated caps.
  • Units that do not avail the abovementioned capital subsidy would be entitled to reimbursement of 50% of the net state goods and services tax for the earlier of 10 years or realization of fixed capital investment.
  • One-time support as seed funding to existing units looking to convert fully to EV / EV Component manufacturing, to the extent of 25% of the book value of plant and machinery but not exceeding INR 2 crores.
  • 100% reimbursement of stamp duty paid on purchase / lease of land / buildings to be used for such manufacturing.
  • Continuous power supply at a special tariff and 100% exemption on electricity duty for 20 years.
  • 50% reimbursement of the cost of water treatment plant (but not exceeding INR 50 lakh) set up by units in the medium or higher categories.
  • 100% reimbursement of the actual expenses (but not exceeding INR 25 lakh) incurred by manufacturing units for domestic and international patent registrations.
  • Provision of an employment generation subsidy of INR 48,000 per employee every year for 10 years, subject to stipulated conditions.

Development of EV charging infrastructure and EV adoption:

  • The Department of Town and Country Planning has been mandated to promote the setting up of charging infrastructure across the state, and a one-time subsidy on fixed capital investment would be provided to entities setting up battery swapping stations and public charging stations.
  • All new and existing petrol pumps will be encouraged to have charging stations and battery banks, with fast charging stations and battery swapping infrastructure to be made available on highways and other prominent roads every thirty kilometers.
  • Public charging equipment would be installed at government offices and public spaces.
  • The Government of Haryana would endeavour to replace all government vehicles, including the bus fleets of the Haryana state transport undertaking, with EVs by 2030.
  • Gurugram and Faridabad would be given phase wise goals to ensure 100% e-mobility and to phase out all fossil fuel based commercial passenger carrying vehicles by 2030.

Research and capacity building initiatives:

  • Educational and research institutes would be eligible for subsidies and incentives to develop new technologies for EVs and EV charging and for research into non-fossil fuel based mobility solutions.
  • Government organisations and private companies can seek grants for 50% of the project cost but not exceeding INR 5 crore for the setting up of centres of excellence to train sufficient numbers of skilled employees for EV manufacturers in the state.

LIMITATIONS

Units availing incentives under the EV Policy are not eligible to avail similar incentives under any other Haryana government policies, but are eligible for other incentives not specified in the EV Policy. The incentives specified in the EV Policy (other than incentives for EV buyers) may be availed in addition to incentives available under any scheme or policy of the Government of India. However, the sum of all fiscal incentives availed would not exceed 100% of the fixed capital investment, for manufacturers and owners of public charging / battery swapping stations.

^The Haryana Government categorizes industrial areas into alphabetical blocks basis the level of development.

DISCLAIMER

This material is for general information only and is not intended to provide legal advice. This material is distributed with the understanding that the authors are not rendering legal, accounting, or other professional advice or opinions on specific facts or matters and, accordingly, assume no liability whatsoever in connection with its use.

AUTHORS

Partner:

Abhik Ghosh (Partner)
Aesa Dey (Associate)

Associates:

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