The Haryana government has issued the State Electric Vehicle (EV) Policy, 2022, to promote clean transportation and create an ecosystem for manufacturing EV components in the state.

The policy aims for Haryana to develop into a global hub for electric mobility development by attracting companies to set up their EV manufacturing units. It intends to create an eco-friendly environment by offering exemption in taxes, permit fees, subsidies, and incentives to the industries manufacturing EVs.

The state targets to convert 100% of the bus fleet owned by state transport undertakings into electric buses by 2029. The first phase of 100% bus fleet conversion will commence in Gurugram and Faridabad by 2024.

The state intends to phase out all fossil fuel-based commercial fleets and logistics vehicles in Gurugram and Faridabad by 2024 and all cities by 2030.

All government vehicles, including those under government corporations, Boards, and government ambulances, will be converted to electric vehicles by 2024.

Vehicle categories

Electric vehicles with battery packs below 120V are considered light electric vehicles (LEVs). LEVs can include two-wheelers, three-wheelers, and certain car models. Electric vehicles with battery packs above 500V are considered heavy electric vehicles.

Charging infrastructure

Public Sector Undertakings (PSUs) will be encouraged to set up charging infrastructure. The government will make available land to such PSUs at concessional rates in designated areas.

Fast charging stations with battery swapping infrastructure will be set up every 50 kilometers on prominent highways with a high density of vehicles.

New apartments, high-rise buildings, and technology parks will be provided charging infrastructure for EVs.

Haryana will encourage the creation of a secondary market for the disposal of EV batteries in a private-public partnership model. It will also encourage private players to set up EV charging systems and infrastructure. Electricity will be supplied to charging stations at commercially viable rates.

Manufacturing support

The policy says that the government will allocate 100 to 200 acres of land for developing EV Parks with plug-and-play internal infrastructure, common facilities, and necessary external infrastructure. The parks will also house an incubation center for handholding startups.

In the case of mega integrated projects, the government will offer land to dependent ancillary units at the same rates as the original equipment manufacturer (OEM), up to 50% of the land allocated to the OEM. The government will provide water supply and facilitate water treatment plants in and around major auto hubs.

Financial support

A capital subsidy of 25% of fixed capital investment up to a maximum of ₹1.5 million (~$19,011) will be given for micro industries, whereas 20% of fixed capital investment up to a maximum of ₹4 million (~$50,697) will be provided for small and ₹5 million (~$63,371) for medium industries.

A capital subsidy of 10% of fixed capital investment up to a maximum of ₹100 million ($1.26 million) for the first two units will be provided under the large industries category in each EV segment, battery and charging equipment, hydrogen storage, and fuelling equipment manufacturing.

A capital subsidy of 10% of fixed capital investment up to a maximum of ₹200 million (~$2.53 million) for the first two units will be provided under the mega-industry category in each EV segment, battery and charging equipment, hydrogen storage, and fuelling equipment manufacturing.

A 25% subsidy will be provided to micro, small, medium, and large enterprises on total fixed capital investment for the sustainable green measures project with a ceiling of ₹500 million (~$6.33 million).

For charging stations with direct current (DC) chargers with a minimum of 100V, a capital subsidy of 25% of the value of the charging station equipment for the first 100 charging stations will be provided up to a maximum subsidy of ₹1 million (~$12,670).

For charging stations with DC chargers with less than 100V, a capital subsidy of 25% of the value of the charging station equipment for the first 300 charging stations will be provided up to a maximum subsidy of ₹30,000 (~$380).

A capital subsidy of 25% of fixed capital investment will be accorded to the first 50 swapping stations and battery banks, subject to a maximum of ₹1 million (~$12,670).

Cost reimbursement

The government will provide fixed power cost reimbursement at ₹3 (~$0.038)/kWh for five years from the commencement of commercial production. All new EV manufacturing and electric battery units will be exempted from paying electricity duty for the first ten years.

Water will be supplied at 50% of the price of the existing industrial supply tariff for the initial three years from the commencement of commercial production. To provide quality water, the government will reimburse 25% of the cost of the water treatment plant wherever necessary, subject to a limit of ₹20 million (~$253,323).

Road tax exemption

Complete state goods and service tax (SGST) accrued to the state will be reimbursed for five years for micro and small, seven years for medium, and ten years for large industries. This reimbursement will be limited to 100% of capex or for the period stated, whichever is earlier.

There will be a total exemption on road tax for EVs purchased within the state. The state will exempt SGST from purchasing EVs manufactured within the state.

Buyers who intend to purchase e-rickshaws or carts within six months from the issuance of the EV policy will be issued a coupon of ₹25,000 (~$316). Buyers who intend to purchase LEVs within six months from the issuance of the policy will be issued a coupon of ₹50,000 (~$633).

Buyers who intend to purchase Electric cars below ₹1 million (~$12,670) within six months from the date of the policy will be eligible for a coupon of ₹75,000 (~$950). For electric cars above ₹1 million (~$12,670), a coupon of ₹100,000 (~$1,266) will be issued.

Several states, including Assam, Maharashtra, Delhi, and Gujarat, have launched state-specific EV policies to bolster EV and related-infrastructure production.