Andhra Pradesh EV Policy – Summary

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Status of Policy – Final

Released on – 08 Jun 2018

Targets of Andhra Pradesh EV Policy 2018

• Attract combined investments of over INR 30,000 Crore in the next 5 years across the electric mobility ecosystem with an employment potential for 60,000 people
• Bring in manufacturing units of high density energy storage of at least 10GWh capacity in the next 5 years to cater to both domestic as well as export market.
• Convert 100% of APSRTC bus fleet of over 11,000 buses into electric buses (BEVs/FCEVs) by 2029, with the first phase of 100% conversion of bus fleet in top 4 cities by 2024.
• Phase out all fossil fuel based commercial fleets and logistics vehicles in top 4 cities by 2024 and all cities by 2030.
• All forms of government vehicles, including vehicles under government corporations, boards and government ambulances etc. will be converted to electric vehicles by 2024.
• Have 10 lakh EVs, combined across all segment of vehicles, by 2024.
• Have 1,00,000 slow and fast charging stations by 2024

The GoAP wants to achieve its objectives by emphasizing on Manufacturing of EV and its components, Charging Infrastructure, Hydrogen generation and Refueling infrastructure, Demand creation for EVs, Research & Development.

The policy outlines special incentives and concessions to attract investments in EV manufacturing and infrastructure, which includes:

Manufacturing 

Development of Electric Mobility Industrial Parks:-

• Government will allocate 500 to 1,000 acres of land for EV Parks necessary infrastructure to attract manufacturing start-ups. 
• Developers of EV Clusters and Suppliers Manufacturing Centers will be provided financial assistance of 50% of fixed capital investments in building and common infrastructure, up to a maximum of INR 20 crore.

Infrastructural Support to Manufacturing Firms

Government will offer various support like:

• Land to dependent ancillary units at up to a maximum of 50% of the land allocated to OEM to set up charging or swapping stations.
• Water supply to meet this requirement wherever necessary.
• GoAP is committed to supplying uninterrupted 24×7 quality power. 
• The electricity duty will be reimbursed for a period of 5 years.
• State will identify the required need of skilled manpower, with skill sets and provide courses at different levels of education – matriculation and above. Additional subsidy on training and stipend will be provided for every company with a cap on employees per type of firm.

Financial Support to Manufacturing Firms

Capital subsidy of Fixed Capital Investment (FCI) in the following amounts:

• 25% of FCI up to a maximum of INR 15 lakhs for Micro industries.
• 20% of FCI up to a maximum of INR 40 lakhs for Small and 50 lakhs for Medium Industries
• 10% of FCI up to a maximum of INR 10 Crores for first two units, under Large industries, in each segment of EV equipment manufacturing.
• 10% of FCI up to a maximum of INR 20 Crores for first two units, under Mega category, in each segment of EV equipment manufacturing.
• For specific clean production measures, 35% subsidy on cost of plant & machinery for MSMEs upto a maximum of 35 lakhs and 10% subsidy on cost of plant & machinery for Large projects upto a maximum of 35 lakhs. 
• 25% subsidy, for MSMEs and Large projects, for sustainable green measures on the total FCI of the project with a ceiling of INR 50 crore.
• 100% net SGST accrued to the state will be reimbursed for a period of 5 years for micro & small, 7 years for medium, 10 years for large industries. This reimbursement will be limited to 100% of capex or for the period stated, whichever is earlier.
• 50% of cost of participation with a maximum amount of 5 lakhs to be reimbursed to a maximum of 10 MSME units per year for participating in international trade fairs.

Financial Incentives for Private Charging Stations

• For DC chargers above 100V, Capital Subsidy of 25% of the value of the charging station for first 100 stations upto a Maximum subsidy of INR 10,00,000.
• For DC Chargers below 100V, Capital Subsidy of 25% of the value of the charging station for first 300 charging stations upto a Maximum subsidy of INR 30,000.
• Capital subsidy of 25% of Fixed Capital Investment up to a maximum subsidy of 10 lakhs for swapping stations for the first 50 stations.
• 100% net SGST, accrued to the state, as reimbursement for purchase of fast chargers (DC chargers of capacity 100V and above).
• 100% net SGST, accrued to the state, as reimbursement for purchase of advanced batteries for BEV swapping stations.

R&D Grants

• A research grant of INR 500 Cr will fund the most innovative solutions in the mobility space. Public or private research labs, incubators, startups that work on products and solutions in the electric mobility space will also be provided land and office space to quickly set up their facility. 
• The government will provide financial assistance for patent quality certifications. The financial assistance will be limited to 75% of the cost, subject to a maximum of 25 lakhs for obtaining patent registration and 50% of all charges, subject to a maximum of 5 Lakhs paid for obtaining quality certification. 

Link to Policy Document

Andhra Pradesh EV Policy 2018