Haryana State EV Policy 2022

This report summarizes key points of the recently announced Haryana State Policy 2022, enumerating the key benefits for different stakeholders across the value chain as also our perspective to ensure adoption by addressing key consumer concerns.

Background:

• The recently announced State Electric Vehicle Policy 2022, of Haryana comes out as a well thought out and well researched policy with benefits for all the stakeholders from ancillary units, EV manufacturers to the last mile consumers.
• It offers financial incentives for EV manufacturers, EV components, EV batteries, charging infrastructure as well as consumers.
• The year 2022 has been announced as the Year of EVs.

Benefits for supply side:

• 100% reimbursement of stamp duty
• Exemption in electricity duty for 20 years
• 50% of net SGST filed will be eligible for reimbursement for 10 years
• Players have been categorized basis their scale of operations and offered capital subsidy:

Additionally, to facilitate conversion of existing manufacturing units completely into EV manufacturing, a one-time support of 25% of book value up to INR 2 Crores would be provided to micro, small, medium and large units.

Benefits for R&D and institutions in the EV space:

State government to offer:

• 50% project cost (up to INR 1 Crore) for developing charging technologies
• Up to INR 5 Crore for developing new EVs
• Grant worth INR 5 Crore for institutes carrying out research on non-fossil
  fuel-based mobility
• One-time subsidy of INR 25 for first 20 colleges/ institutes contributing to the EV industry

Benefits for Consumers:

• Early bird benefit transfer of up to INR 10 lakhs on purchase of EV or Hybrid
• Relaxation on registration fees and lower Motor Vehicle Tax rates
• Discounts applicable for both EV and Hybrid vehicles
  • Flat 15% discount for Hybrids below INR 40L
  • 15% discount or up to INR 6L for EV between INR 15 to 40L
  •  15% discount or up to INR 10L for EV between INR 40 to 70L
• Mandatory for Group housing societies, commercial, institutional and public facilities like metro stations, hospitals etc. to have amenities and provisions for charging of electric vehicles.

Other Key Highlights:

• Employment generation subsidy of Rs 48,000 per employee per year for 10 years
• Gurugram and Faridabad to be model Electric Mobility (EM) cities with 100% adoption to be done in a phased manner
• Convert Haryana State Transport bus services to 100% non-fossil fuel by 2030.

Our Perspective:

• This policy can be considered as a step in the right direction to enhance production, innovation, adoption as well improve skill development, create new employment opportunities, and protect environment.
• State of Haryana being an established automotive hub providing readily available ecosystem of suppliers, experienced manpower and infrastructure to ensure an electric start to the evolving EV ecosystem, the policy will provide impetus to the segment by attracting new as well as existing players to the state and contribute to the economic growth of the state and benefit of the society at large.
• Current infrastructure support needs to be ramped up for faster adoption of EV by the end customers as they look for convenience as a comparison of petrol/diesel vehicle.
• Customer awareness and adequate support needs to be developed to enhance willingness to shift to EV coupled with lucrative buy-back offer and link it with vehicle scrappage policy.
• Battery safety also needs to be taken care of for adoption, with development of made for India battery technologies coupled with certification and end-of-life disposal mechanism.
• Indian customers believe in more pocket friendly options. Therefore, although the total cost of ownership is much lower than petrol/diesel vehicle, there is pertinent need to work upon lowering the initial buying cost.
• The policy helps achievement of multiple SDG goals:

Image source: https://en.unesco.org/sustainabledevelopmentgoals