At the Karnataka Global Investors Meet on Wednesday, the state government introduced its new Clean Mobility Policy, designed to promote growth in the electric vehicle (EV) sector. This ambitious policy is set to generate 1 lakh jobs and attract Rs 50,000 crore in investments by 2030.
The primary objective of the policy is to position Karnataka as the leading destination for clean mobility vehicle manufacturing in Asia. It aims to achieve this by leveraging the state’s strategic advantages and building a skilled workforce to support sustainable growth. The policy envisions creating a comprehensive clean mobility vehicle ecosystem in the state, which includes a robust charging infrastructure network and hydrogen stations.
The government plans to offer incentives and concessions for setting up EV manufacturing plants and related component facilities. It will also establish clean mobility clusters and support infrastructure development such as testing facilities, research, innovation, and skill development. Key areas of support include manufacturing clean mobility vehicles, battery packs, hydrogen tanks, power electronics, and recycling of batteries.
In addition, the policy outlines incentives for MSMEs in the EV sector, including capital subsidies, exemption from stamp duties and registration charges, and reimbursement of land conversion fees. The government has also identified three EV clusters in Chikkaballapur, Dharwad, and Ramanagara, and will encourage retrofitting existing vehicles with EV components.
Karnataka’s earlier Electric Vehicle and Energy Storage Policy from 2017 has already attracted Rs 25,000 crore in EV investments, making the state a leader in the sector with around 2.5 lakh EVs registered and 5,403 charging stations.
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