Karnataka Electric Vehicle (EV) Policy 2021 - No Road Tax and Registration Fees Benefit on Purchase of New EV

Karnataka is the first state in India to unveil an EV policy, and it was first introduced in 2017. This year, in 2021, Karnataka Government has introduced the policy with some changes, but their focus was for the EV makers and investors only. 

Karnataka is already offering an investment subsidy of 20% capped at Rs 20 Crore and a 15% capital subsidy to investors on the fixed assets. Still, it is limited to a maximum land of 50 Acres. And the payment of the grant will be paid in 5 years in equal installments. Here State Government is providing a Production-linked contribution of 1% on turnover for large EV assembly and manufacturing units for 5 years. Along with that, you'll also get Exemptions from stamp duty and tax on electricity tariff. 

Here Government is offering you reimbursement on the land conversion fee, and along with that, they are offering interest-free loans on the Net SGST. But if we talk about the EV consumers, they are getting 100% exemption in road tax and registration fee, so if you buy a new EV, there will be no road tax on it. The Government is focusing on making a new EV cluster in the Ramanagar District, near Bengaluru, and concentrating on availing industrial lands to create new EV parks and zones to develop the infrastructure under the PPP model. But the interesting fact is, if you're buying a 2-wheeler, 3-wheeler, or 4-wheeler, then Karnataka Government will not offer subsidies to the EV buyers in the state. In contrast, the neighboring states are offering many benefits.

So the people of Karnataka have to miss out on these benefits because there is no clarity from the Karnataka Government that what benefits will be there for the consumers, whoever wants to buy a 2-wheeler, 3-wheeler, or 4-wheeler. But Yes, there are many benefits given to the manufacturing setup or for the businesses. But Karnataka Government didn't announce any help for the residence of Karnataka yet. 

So this was the complete update about the Karnataka EV policy. It is surprising that yet Government hasn't given any particular benefit for the customers till now, we wish they would re-work on this and definitely would come up with something in the coming time. That's all for this post stay tuned to CERadar for more such updates.