Karnataka Electric Vehicles and Energy Storage Policy 2017

Karnataka Electric Vehicles and Energy Storage Policy 2017 to make Karnataka a preferred investment destination for electric vehicle manufacturing by leveraging the benefits and opportunities available for the continued growth of this promising segment.

Support for EV Charging Infrastructure Under Karnataka EV Policy

Availability of charging infrastructure is a prerequisite for electric mobility. The government of Karnataka will develop charging infrastructure as a commercially viable business venture that attracts private investment. It is proposed to adopt BIS standards for charging equipment, mandating charging infrastructure in public buildings, amending building bylaws for provision of charging outlets, regular electricity supply, etc.

To support charging infrastructure the following measures will be taken:

  • The government of Karnataka in association with Industry & Academia will come out with standards for battery, charging infrastructure & swapping mechanisms, etc to build an interoperable network where different vehicles from different OEM COI1 participate; and recommend to the Government of India.
  • The government of Karnataka will encourage private players to set up the Automotive Research Association of India (ARAI)-compliant/BIS Standard, EV charging Systems/ infrastructure.
  • The government of Karnataka will identify potential places and provide land belonging to Government / Government agencies, wherever available, on a long lease basis for setting up EV fast-charging stations and battery swapping infrastructure by following a transparent bidding process.
  • A Special Purpose Vehicle (SPV) involving BBMP, BMTC, BESCOM, KREDL, KIADB, and other related agencies will be mooted for the creation of Charging infrastructure in Bengaluru.
  • The government of Karnataka will offer incentives by way of investment subsidy for setting up the first lot of 100 fast-charging stations.
  • The government of Karnataka will facilitate providing the required electricity supply from the grid and examine special tariffs at commercially viable rates for EV charging stations.
  • ESCOMs will examine bringing in amendments to their policies and allow re-sale of power to encourage the setting up of charging stations.
  • ESCOMS will examine permitting the use of solar energy / renewable energy at Mw connection cost and offer zero wheeling charges by EV charging stations.
  • To facilitate EV mobility on highways between prominent cities with a heavy density of vehicles such as the Bengaluru-Mysur highway and others, a fast-charging station/ battery swapping infrastructure will be provided at every 50 kilometers.
  • Amendments will be made to building bye-Mws for providing charging infrastructure for EVs in all high-rise buildings/ new SEZ / TechnoMgy Park / Apartments in the State.
  • Existing apartment associations will be encouraged to provide a special dedicated plug/charging station facilitating the adoption of EVs by their members.
  • BMRCL / BMTC / KSRTC / BBMP will provide charging stations for two-wheelers at their parking stations to encourage EVs for Mst mile commute.
  • Charging infrastructure for personal transport vehicles of Government employees would be made available at Vikasa Soudha Basement/ Multistoried Building parking area and covered parking areas in all Government buildings across the State
  • Encourage toot / or pay-per-use business models with battery-swapping station network, integrated payment, and tracking system in partnership with BMTC and other private players.
  • The government of Karnataka will facilitate deploying used EV batteries for solar application, create a secondary market and provide battery disposal infrastructure in a PPP model.

Incentives and Concessions to Electric Vehicle & Components Manufacturing Enterprises

All the EV manufacturing Enterprises will be eligible for the incentives and concessions.

Manufacturing Enterprises of components required for Electric Vehicles such as Motors, Power Trains, Power Electronics kits, etc. will be eligible for incentives and concessions as per the policy subject to the approval of the Technical Committee which would be substituted & mandated to define/certify EV component manufacturing enterprises.

The following incentives & concessions Will be offered:

A Micro, Small & Medium Enterprises A. Investment Promotion Subsidy

  1. Micro Enterprises 25% of the Value of Fixed Assets (VFA) (max. Rs. 15.00 lakh)
  2. Small Enterprises 20% of the Value of Fixed Assets (VFA) (max. Rs.40.00 lakh)
  3. Medium Manufacturing Enterprises Rs.50.00 lakh 

B. Exemption from Stamp Duty 100% Stamp duty to be paid in respect of

  1. loan agreements, credit deeds, mortgage and hyphenation deeds executed for availing loans from State Government and/or State Financial Corporation, National Level Financial Institutions, Commercial Banks, RRBs, Co-operative Banks, KVIB/KVIC, Karnataka State SC/ST Development Corporation, Karnataka State Minority Development Corporation and other institutions which may be notified by the Government from time to time and
  2. for lease deeds, lease-cum-sale, sub-lease, and absolute sale deeds executed in respect of industrial plots, sheds, industrial tenements by KIADB, KSSIDC, KEONICS, Industrial Co-operatives and approved private industrial estates/parks shall be exempted.

C. concessional Registration Charges: For all loan documents, lease deeds, and sale deeds as specified in B above, the registration charges shall be at a concessional rate of Rs.1 per Rs.1000.

D. Reimbursement of Land Conversion Fee 10096 of the land conversion fee for converting the land from agriculture use to industrial use will be reimbursed.

E. Subsidy for Setting up Effluent Treatment Plant (ETP) One-time capital subsidy up to 5096 of the cost of ETP, subject to a ceiling of Rs. 50 lakh.

F. Exemption from Tax on Electricity Tariff 10096 exemption of duty/tax on electricity tariff for the initial period of five years.

Incentives and Concessions to Large, Mega, Ultra Mega, and Super Mega Enterprises

A. Exemption from Stamp Duty 100% Stamp duty to be paid in respect of

  1. loan agreements, credit deeds,  and hypothetical deeds executed for availing loans from State Government including VAT /SGST loan from Department and/or State Financial Corporation, Industrial Investment Development Corporation, National Level Financial Institutions, Commercial Banks, RRBs, Co-operative Banks, and other institutions which may be notified by the Government from time to time only and
  2. for lease deeds, lease-cum-sale, sub-lease, and absolute sale deeds executed in respect of industrial plots, sheds, industrial tenements, by KIADB, KEONICS, KSIIDC, Industrial Co-operatives, and approved private industrial estates/parks shall be exempted.

B. Concessional Registration Charges: For all loan documents, lease deeds, and sale deeds as specified in A above, the registration charges shall be at a concessional rate of Rs.1.00 per Rs.1,000. 

C. Reimbursement of Land Conversion Fee: 100% of the land conversion fee for converting the land from agriculture use to industrial use will be reimbursed.

D. Subsidy for Setting up ETPs: One-time capital subsidy up to 50% of the cost of Effluent Treatment Plants (ETPs), subject to a ceiling of Rs. 200 lakh.

Incentives and Concessions to EV Battery Manufacturing/Assembly Enterprises

The State has set itself a target of inviting investments in setting up to 5 GWh of EV Battery manufacturing capacity which is expected to generate 5,000 direct employment in this industry and around 7,500 more in the overall EV Battery manufacturing/Assembly supply chain. All the EV Battery manufacturing/ Assembly Enterprises will be eligible for the incentives and concessions.

Manufacturing and assembly of the major component required for Electric Vehicles such as lithium-ion batteries will be eligible for incentives as per the policy subject to the approval of the Technical Committee which would be constituted & mandated to certify/define EV battery manufacturing enterprises.

The following incentives & concessions Will be offered:

A. Investment Promotion Subsidy
a) Micro, Small & Medium Enterprises a) Micro Enterprises 25% of the Value of Fixed Assets (VFA) (max. Rs. 15.00 lakh)
b) Small Enterprises 20% of the Value of Fixed Assets (VFA) (max. Rs.40.00 lakh)
c) Medium Manufacturing Enterprises Rs.50.00 lakh

Investment Subsidy of 20% of the Value of Fixed Assets (VFA) (max. Rs. 20 crore per project) will be available for the first TWO units in the State.

B. Exemption from Stamp Duty for all EV Cell Manufacturing, EV Battery Pack/Module Manufacturing & Assembly Enterprises
100% Stamp duty to be paid in respect of

(i) loan agreements, credit deeds, mortgage and hypothecation deeds executed for availing loans from State Government including VAT /SGST loan from Department and/or State Financial Corporation, Industrial Investment Development Corporation, National Level Financial Institutions, Commercial Banks, RRBs, Co-operative Banks, and other institutions which may be notified by the Government from time to time only and

(ii) for lease deeds, lease-cum-sale, sub-lease, and absolute sale deeds executed in respect of industrial plots, sheds, industrial tenements, by KIADB, KEONICS, KSIIDC, Industrial Co-operatives, and approved private industrial estates/parks shall be exempted.

C. Concessional Registration Charges for all EV Cell Manufacturing, EV Battery Pack/Module Manufacturing & Assembly Enterprises: For all loan documents, lease deeds, and sale deeds as specified in 2 above, the registration charges shall be at a concessional rate of Rs. 1.00 per Rs. 1,000.

D. Reimbursement of Land Conversion Fee for all EV Cell Manufacturing, EV Battery Pack/Module Manufacturing & Assembly Enterprises: 100% of the land conversion fee for converting the land from agriculture use to industrial use will be reimbursed.

E. Exemption from Electricity duty for EV Cell Manufacturing MSMEs, EV Battery Pack/Module Manufacturing & Assembly MSMEs: 100% exemption of electricity duty/tax on electricity tariff shall be available for an initial period of five years for MSMEs.

F. Subsidy for Setting up ETPs for all EV Cell Manufacturing, EV Battery Pack/ Module Manufacturing & Assembly Enterprises

Download Karnataka EV Policy 2017 (PDF)