In a Notification dated 9^th October, 2019 the Tamil Nadu Government has ordered the implementation of the “Tamil Nadu Electric Vehicle Policy, 2019” (“Policy”).

The Policy was unveiled on 16^th September, 2019 and was formulated with a view to making Tamil Nadu an unique destination for developing electric mobility ecosystem by promoting investment in electric vehicle manufacturing.

Some key takeaways from the Policy are mentioned below:

1. Manufacturers of electric vehicles, auto components, particularly EV batteries and manufacturers of charging infrastructure will be provided a special package of incentives.
2. 100% of the SGST paid on the sale of EVs manufactured sold and registered for use in the state will be reimbursed to the manufacturing companies.
3. In case of intermediate products used in the manufacture of EVs, a capital subsidy of 15% will be given to eligible investments over 10 years.
4. EV related and charging infrastructure manufacturing industries in the state will be provided 100% exemption on electricity tax till 31^st December, 2025.
5. The industries will be entitled to 100% exemption on stamp duty till 31^st December, 2022.
6. All the employers in the industry will be given an employer incentive in the form of reimbursement of employer’s contribution to EPF for all jobs created till 31^st December, 2025.

All investment under the Electric Vehicle Sector will be provided the necessary facilitation through Single Window Clearance facility.

Further, the Industries Department will be the nodal department for the implementation of the Policy.

Source: Industries Department, Tamil Nadu

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