Haryana approves electric vehicle policy; offers incentives to EV manufacturers

Haryana on Monday approved the electric vehicle (EV) policy for the state, offering several financial incentives to EV manufacturers. The policy was released after a meeting of the state cabinet ministers that met under the chairmanship of CM Manohar Lal Khattar. The state's EV policy offers financial incentives to EV manufacturer on fixed capital investment (FCI), employment generation, net SGST, stamp duty, etc. Government is also offering 100 per cent reimbursement of stamp duty along with exemption in electricity duty for a total of 20 years.

Under the scheme, the SGST reimbursement will be 50 per cent of the applicable net SGST for a period of 10 years. The incentives will be applicable to all companies that manufacture electric vehicles, components of electric vehicle, EV battery, and charging infrastructure. Companies setting up batteries disposal units will also get 15 per cent of FCI up to ₹1 crore.

Further, the Haryana EV Policy 2022 promises employment generation subsidy of ₹48,000 per employee per annum for 10 years in lieu of Haryana domiciled manpower being employed with EV companies.

In electric mobility efforts, the state will also make efforts to convert 100 per cent of its bus fleet into electric buses or Fuel Cell Vehicles or other non- fossil-fuel-based technologies by 2030. Gurugram and Faridabad will be declared as model Electric Mobility (EM) cities.

The Haryana EV Policy also offers one time support to facilitate conversion of existing manufacturers units completely into EV manufacturing of 25 per cent of book value up to ₹2 crore for Micro, Small, Medium and Large units. To EV buyers, it offers incentives to reduce effective upfront cost, encouraging commoners to adopt electric mobility.

(with inputs from PTI)