Vehicle technology and energy solutions are changing due to recent advancements and advances in energy storage. Internal combustion engine (ICE) vehicles can be replaced with electric vehicles (EV), which is a promising development. With advances in battery technology, a decrease in the number of moving parts, and zero tailpipe emissions, the adoption of EV gives a financially sound and environmentally friendly mobility solution that is gaining support from both policymakers and business titans worldwide.
In order to make the electric vehicle and energy storage solutions sector competitive in the near future, the Government of India (GoI) launched the National Mission on “Transformative Mobility and Energy Storage” in March 2019. The mission is dedicated to creating a complete domestic ecosystem around the EV industry, including the manufacturing of batteries and all other components.
The Andhra Pradesh government has set an ambitious goal for itself to become one of the top three States in India by 2022, the best State by 2029, and a major international investment hub by 2050.
As a result, the Government of Andhra Pradesh has determined that the EV market will be a significant growth driver in the coming years. It promotes the Andhra Pradesh Electric Mobility Ecosystem in an effort to lead the way in developing sustainable transportation infrastructure.
The “Electric Mobility Policy 2018-23” has been released by the government in an effort to make Andhra Pradesh one of the key centers for the EV industry. This comes after thorough consultations with stakeholders, industrial associations, and industry experts.
Incentives provided by the Andhra Pradesh Government to the Suppliers
- Fixed Capital Subsidy: 25% of Fixed Capital Investment (FCI) for Micro Industries, up to a maximum of INR 15 lakhs.
- 20% of Fixed Capital Investment (FCI) for Small and Medium Industries, respectively, up to a maximum of INR 40 lakhs and INR 50 lakhs
- 10% of Fixed Capital Investment (FCI) up to a maximum of INR 10 Crores for the first two units in each of the manufacturing of electric vehicles (two-wheelers, three-wheelers, four-wheelers, and buses), batteries, charging equipment, and equipment for storing and refuelling hydrogen segments under the Large Industries category.
- 10% of Fixed Capital Investment (FCI) up to a maximum of INR 20 Crores for the first two units in each of the production of electric vehicles (two-wheelers, three-wheelers, four-wheelers, buses), batteries, charging equipment, and equipment for storing and refuelling hydrogen.
- A 35% subsidy on the cost of plant and machinery for Micro, Small, and Medium-Sized Enterprises (MSME) up to a maximum of INR 35 lakhs and a 10% subsidy on the cost of plant and machinery for Large Projects up to a maximum of INR 35 lakhs are available for specific clean production measures that have been certified by the Andhra Pradesh Pollution Control Board (APPCB).
- 25% of the total Fixed Capital Investment (FCI) of the project (excluding the cost of land, land development, preliminary and pre-operative expenses, and consultancy fees) may be subsidised for sustainable green measures in Micro Small and Medium Enterprises (MSMEs) and Large Projects, up to a maximum of INR 50 crore.
- On a case-by-case basis, special incentives will be offered based on their requirement for mega, mega integrated automobile projects, and ultra-mega battery manufacturing plants.
- On every acquisition or lease of land intended for industrial use, the industry will receive a full refund of the stamp fee and transfer duty they have already paid. For leases of land, sheds, buildings, mortgages, and hypothecations, stamp duty will be fully repaid.
- On every acquisition or lease of land intended for industrial use, the industry will receive a full refund of the stamp fee and transfer duty they have already paid. For leases of land, sheds, buildings, mortgages, and hypothecations, stamp duty will be fully repaid.
- Capital Subsidy of 25% of the value of the equipment or machinery of the first 100 charging stations, up to a maximum subsidy of INR 10,00,000, is available for direct-current (DC) chargers (100V and higher).
- Capital Subsidy of 25% of the value of the equipment or machinery at the first 300 charging stations, up to a maximum subsidy of INR 30,000, for Direct-Current (DC)Chargers (Below 100V)
- For the first 50 stations, a capital subsidy of 25% of fixed capital investment, up to a maximum subsidy of INR 10 lakhs, is available for station swapping.
- 100% of the net amount of State Goods and Services Tax (SGST) that the State accrued as compensation for the purchase of fast chargers (DC chargers of capacity 100V and above).
- 100% of the net State Goods and Services Tax (SGST) that was accrued to the State as compensation for the procurement of advanced batteries for battery electric vehicle replacement.
For a period of five (5) years starting on the day that commercial production began, the Government of Andhra Pradesh will repay fixed electricity costs at a rate of Rs. 1.00 per unit. For the first three (3) years following the start of commercial production, water supplies will be provided at 50% of the price of the current industrial supply tariff.
SGST and IGST: For a period of five (5) years for micro and small, seven (7) years for medium, and ten (10) years for large industries, 100% net SGST accrued to the State shall be refunded. This refund is only valid for the stated duration or 100% of CAPEX, whichever comes first.
Other EV benefits provided by the Andhra Pradesh Government
- All external infrastructure, including roads, electricity and water supplies, and battery swapping and charging stations, will be offered at the industrial unit’s doorstep for a maximum cost of INR 2 crores per project.
- Where land is provided to Original Equipment Manufacturers (OEM) for Mega Integrated Projects, the government would offer land to dependent ancillary units at the same rates as offered to the individual OEM, up to a maximum of 50% of the land allocated to OEM.
- Micro, Small, Medium, and Large enterprises are eligible for a stipend of INR 10,000 per employee per year, up to a limit of the first 50 employees for a single company to benefit the EV industry.
- To a maximum of 10 MSME units per year, 50% of the cost of participation up to INR 5 lakhs will be paid for attending international trade fairs.
- The most cutting-edge mobility solutions will be supported by a research grant of INR 500 Cr.
