Tamil Nadu EV Policies

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Status: Notified; Date of Notification: February 14, 2023; Validity Period: 5 years from the date of of the policy notification, or till a new Policy is announced.

Key Objectives

Attracting INR50,000 crore worth of investments in EV manufacturing
Creation of 1.5 lakh new jobs
Increase the share of electric buses to 30% of the fleet by 2030

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*All subsidies listed below in Tamil Nadu are for vehicles used for commercial purposes only

Electric-2 Wheelers

INR10,000/kWh up to INR30,000 (6,000 vehicles per year)

Electric-3 Wheelers

INR10,000/kWh up to INR40,000 (15,000 vehicles per year)

Electric-4Wheelers (Cabs/Goods Vehicles)

INR10,000/kWh up to INR1,50,000 (3,000 vehicles per year)

Electric-Buses

INR20,000/kWh up to INR10,00,000 (300 vehicle per year)

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New/expansion projects of EV OEM for manufacturing of Electric Vehicles shall be eligible for 100% reimbursement of the Gross SGST payable on the sale of EVs manufactured, sold, and registered in the State for a period of 15 years from the date of commercial production upon achieving the minimum eligible investment threshold of INR50 crores and minimum employment threshold of 50 jobs, whichever is later.
New/expansion projects in EV battery manufacturing shall be eligible for a special capital subsidy of 20% of investment in Eligible Fixed Assets to be disbursed in 15 equal annual instalments.
New/expansion projects in manufacturing of Electric Vehicles, EV Components, Electric Vehicle Supply Equipment (EVSE), or EV Charging Infrastructure in the State shall be eligible for a Capital Subsidy of 15%of investment in Eligible Fixed Assets to be disbursed in 10 equal annual installments.
New/expansion projects in manufacturing of Electric Vehicles, EV Components, Electric Vehicle Supply Equipment (EVSE) or EV Charging Infrastructure in the State shall be eligible for a subsidy of up to 2% of the project’s annual turnover, subject to an annual cap of 4% of the cumulative investment in EFA for a period of 10 years from the date of commercial production.

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First 200 fast charging stations will be eligible for an incentive of 25% capital subsidy of the cost involved in the purchase of equipment & machinery or up to INR10,00,000 per station
First 500 slow charging stations will be eligible for an incentive of 25% capital subsidy of the cost involved in the purchase of equipment & machinery or up to INR1,00,000 per station
First 200 public swapping stations will be eligible for an incentive of 25% capital subsidy of the cost involved in the purchase of equipment & machinery or up to INR2,00,000 per station
First 50 private e-aggregator charging stations will be eligible for an incentive of 25% capital subsidy of the cost involved in the purchase of equipment & machinery or up to INR10,00,000 per station

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Automotive companies shall be eligible for an up-skilling allowance for up to 10% of their existing workforce working on the EV production line.
Transition support can be availed in form of Training Subsidy of INR4,000 per worker per month for 6 months for residents of Tamil Nadu.
For women and transgender employees, persons with benchmarked disabilities, persons from SC/ST communities the training subsidy shall be INR6,000 per worker per month for 6 months.

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The Government of Tamil Nadu shall encourage a circular economy by promoting the re-use and recycling of EV batteries that have reached the end-of-life stage through recycling centres set up by EV/ EV battery manufacturers and other players.
Recycling projects established during the policy period shall be eligible for incentives on par with battery manufacturing projects.
Appropriate protocols for setting up such centres shall be notified by the Government of Tamil Nadu after consultation with stakeholders

Explore The Tamil Nadu State EV Policies in Detail

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