Uttarakhand cabinet nod to new electric vehicle manufacturing policy to combat pollution

In a decision aimed to rid Uttarakhand of vehicular pollution, the Cabinet gave its approval to the electric vehicle manufacturing and battery charging infrastructure promotion policy on Thursday. Under the plan, a number of exemptions and incentives would be provided to entrepreneurs to set up electric manufacturing units.

“The electric vehicle manufacturing policy aims to address the issue of energy security and vehicular pollution. It enlists a slew of incentives and exemptions to encourage startups to set up units for manufacturing electric vehicles,” minister Madan Kaushik said, while briefing reporters about the decisions taken at the Cabinet meeting chaired by chief minister Trivendra Singh Rawat.

Giving details of the incentives, he announced that under the policy, term loans ranging from Rs 10 crore to Rs 50 crore each would be provided to Micro, Small and Medium Enterprises (MSMEs) interested in manufacturing electric vehicles.

“The term loan will be provided from the date they arrange for the raw material needed for manufacturing of electric vehicles,” Kaushik said, adding all such entrepreneurs would also be entitled to 100% electricity duty exemption.

“The incentive is being given as per the MSME policy released on 2015,” he said. The government would also contribute 50% of the Employees Provident Fund (EPF) or Rs 2 crore each on the condition that units manufacturing electric vehicles would have 100 or more employees on roll, Kaushik added.

The state government would also reimburse the MSMEs 30% to50% of the Goods and Services Tax (GST) deposited by them. “The arrangement would be in place for five years from the date when the MSMEs would procure the raw material for manufacturing of electric cars,” Kaushik said.

Moreover, as part of its move to give boost to the purchase of the electric vehicles, the state government would not charge motor vehicle tax from the first set of one lakh customers.

“All such customers would be entitled to 100% exemption in the motor vehicle tax for five years,” Kaushik said. A similar exemption would be granted to the electric powered commercial vehicles or stage carriages, he added. The exemption would be given in consultation with the electricity regulatory commission.

“The state government would bear Rs 1000 each for training of workers on MSME units,” Kaushik said. He added that the facility would, however, be granted only to those units which would have 50 or more such workers. “Besides, electric vehicles would be provided route permits on a priority basis,” he said.

Plan inspired by Centre’s NEMMP

Electric manufacturing policy approved by the Uttarakhand cabinet is in keeping with ‘National Electric Mobility Mission Plan (NEMMP) 2020’ unveiled by the Central government in 2013. It aims to address the issues of national energy security and rising vehicular pollution besides being in line with Prime Minister Narendra Modi’s ‘Make in India’ concept to encourage the local entrepreneurs.

But when it comes to the policy of manufacturing electric vehicles, Gujarat has already taken a lead. The BJP government in Gujarat has roped in a number of corporate groups to give a boost to the manufacturing of electric vehicles.

JSW Group is the latest to sign an agreement with the Gujarat government to promote production of battery operated vehicles in the state along with the production of electricity battery, storage solutions and charging infrastructure. According to a release issued by the Gujarat government, the company will make an investment of Rs 4,000 crore in the venture.

The Gujarat government has also recently signed an agreement with a Chinese manufacturer for setting up a factory for rolling out electric bikes from Gujarat.

First Published: Sep 28, 2018 00:43 IST

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