Telangana is aiming to become a hub for Electric Vehicles; Launches a 10-year EV policy

On Friday, October 30, the Government of Telangana launched the 10-year 'Telangana Electric Vehicle & Energy Storage Policy' with a vision to make the state a hub for electric vehicles (EVs) and energy storage systems (ESS).

The policy, launched in the presence of ministers KT Rama Rao and Ajay Kumar, is designed to attract private investments worth US$ 4 billion in the electric vehicle sector and create 120,000 employments by 2030.

"Telangana has come out with an extremely comprehensive policy. We have ensured that the energy storage policy is clubbed with the EV policy because these two are tight-knit ideas which need to work cohesively. We have taken a pragmatic approach while designing this policy in consultation with industry leaders," Rama Rao said after unveiling the policy.

The policy includes incentives for the manufacturing of electric vehicles, energy storage systems, and related components in Telangana through capital subsidies, SGST reimbursements, power tariff subsidies, etc. It also includes 100 per cent exemption of road tax and registration fee for the first 2 lakh electric two-wheelers and 20,000 electric three-wheelers purchased and registered within Telangana.

For electric four-wheelers and buses, the policy notifies 100 per cent exemption of road tax and registration fee for the first 5,000 and 500 units, respectively, purchased and registered in the state.

Under the policy, investment of more than INR 200 crore in plant and machinery or employment to more than 1,000 people will be categories as mega project.

The policy also includes the provision of setting up an initial batch of fast charging stations in Hyderabad and other towns in a phased manner by either the state entities or private players.

Telangana State Electricity Regulatory Commission will provide a special power tariff category for EV charging stations. In addition, TSREDCO (State Nodal Agency) is given the responsibility to evaluate the establishment of public charging stations. Various public places such as airports, railway and metro stations, parking lots, bus depots, markets, petrol stations, malls, and electric poles will be examined for the same.

The policy notified that a viable business model would be developed for private players to set up ARAI-compliant EV charging/swapping infrastructure.

On Friday, the Government also signed MoUs with five firms that will invest in the new initiative.