Tamil Nadu EV Policies

Tamil Nadu EV Policies

Explore The Tamil Nadu State EV Policies in Detail

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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