All About Electric Vehicle (EV) Policy Telangana, 2020

In October 2020, Telangana launched its first-ever Electric Vehicle (EV) Policy. For the first time, a 10-year plan was put into practice by a state for Electric Vehicles (EVs).

The Telangana Electric Vehicle Policy (2020-2030)

Vision

"To make Telangana a hub for Electric Vehicles & Energy Storage Systems." 

Mission

• To attract investment for this sector in the State
• To encourage R&D and manufacturing in this sector (Electric Vehicle & Energy Storage Systems)
• To guarantee quicker adoption of Electric Vehicles & Energy Storage Systems
• To obtain a substantial drop in the total cost of transportation for personal and commercial confidences, supported by world-class infrastructure.

Policy Objectives

With 8-objectives to look out, Telegange's EV policy stands out. 

• Reduce the total cost of mobility by rising the adoption of EV. (public transportation, 2 & 3 Wheelers, 4-wheelers, Light Commercial Vehicles & Shared Transportation) 
• To shift from expensive and unreliable fossil fuel to reliable-inexpensive domestically produced renewable energy.
• Make Telangana State the favoured stop for EV, ESS and component manufacturing.
• "To make Telangana a major base for EV & ESS sectors and to attract investments worth $ 4.0 Billion and create employment for 120,000 persons by the year 2030 through EVs in shared mobility, charging infrastructure development and EV & ESS manufacturing activities."
• Create demand for battery storage solutions by pushing EV adoption incentives and supply-side incentives for battery manufacturing.
• Proactively sustain the creation of EV charging infrastructure in the initial phase and eventually create a market for commercially viable EV Charging business.
• Promote Cascading and Recycle of Batteries.
• Strengthen Telangana as a global centre for cutting-edge research and innovation in EVs, battery technologies and various emerging technologies such as Connected/Autonomous vehicles.

Implementation Strategy 

Incentives will be provided to every side of the EV model strategy (from users to manufacturers and charging infrastructure unit). EVs would be adopted at Instutuiranl level. "State Govt shall facilitate in dovetailing with Govt. of India (GoI) schemes and encourage state stakeholders to avail benefits available under GoI schemes. Battery operated feeder shuttle services at all Hyderabad Metro Stations for last-mile connectivity shall be made available."

Policy Period and Policy Measures

The policy period is applicable for 10-years from 2020-2030. It will be examined by the Steering Committee as written in the policy. The policy proposes to build on the objective to encourage the growth of EV & ESS sector. Also, to attract private sector investments in this sector. The framework consists of promoting EV adoption for end-users, setting up Charging Infrastructure and Promoting Manufacturing of EV & ESS Components in the State."

Charging Infrastructure

Accessibility and availability of EV charging infrastructure is a pre-requisite for the diffusion of Electric Vehicles.

• Charging stations will be installed in the State in a phased manner. 
• Charging stations will be installed by both state entities and private players. 
• TSREDCO (State Nodal Agency) shall evaluate, to establish public charging stations directly or under the licensee/franchise/PPP model.
• Charging stations will be installed in various places such as airports, metro, railways, parking lots, petrol stations, malles etc. 
• The viable strategic model shall be developed for private players to set up ARAI compliant EV charging/swapping infrastructure. 
• Battery disposal support model will be created to aid the deployment of used EV batteries.

Demand-side Incentives - Directly from the policy

A. Incentives for 2Ws | Scooter

100% exemption of road tax & registration fee for the first 2,00,000 Electric 2 Wheelers purchased & registered within Telangana.

B. Incentives for 3Ws | Three-Seater Auto Rikshaws

100% exemption of road tax & registration fee for first 20,000 Electric 3 Wheelers purchased & registered within Telangana. "Retro-fitment incentive at 15% of the retro-fitment cost capped at Rs. 15,000 per vehicle for first 5,000 retrofits 3-seater auto-rickshaws in Telangana."

C. Incentives for 4Ws | Personal - Cars and Busses

• 100% exemption of road tax & registration fee for the first 5,000 Electric 4-Wheeler private vehicles purchased & registered within Telangana. 
• 100% exemption of road tax & registration fee for the first 500 Electric buses purchased & registered within Telangana.

D. Incentives for 4Ws | Commercial - Cars and Busses 

100% exemption of road tax & registration fee for the first 5,000 Electric 4-Wheeler commercial passenger Vehicles such as Taxi, Tourist Cabs, etc. purchased & registered within Telangana.

E. Incentives for Tractors 

100% exemption of road tax & registration fee shall be applicable for electric tractors purchased and registered in the State of Telangana as per the existing rules/guidelines will be applicable for tractors by Transport Department, Govt. of Telangana

Supply-side Incentives

Telangana seeks to be the pioneer in Electric Mobility and Energy Storage space in the country. Local manufacturing and R&D are essential to approaching price/performance parity between ICE Vehicles and EVs. Therefore, aid shall be prolonged to EV & ESS, ancillary & charging infrastructure & exchanging infrastructure manufacturers through policy interventions and Incentives.

Stakeholders and Steering Committee 

Multiple stakeholders involved in this policy are Electronics Electronics Wing, ITE&C Dept., Transport Dept., TSREDCO, TSSPDCL/ TSNPDCL, MAUD Dept. and MAUD Department. On the other hand, the steering committee will consist o senior officials from the relevant department who will work towards time-bound EV demand creating & charging network.

Summing-up

The government shall encourage EV adoption in Shared Mobility, Public Transport, Institutional Transport, Logistics & Delivery Services. Setting up EV & ESS clusters, preferential market access and promoting R&D is what they aim to focus more on.