Telangana’s New Electric Vehicle Policy: A Leap Towards Sustainable Mobility

 The Telangana government has unveiled an ambitious new electric vehicle policy aimed at transforming the state into a leading EV manufacturing hub in India. This initiative includes significant incentives designed to promote electric vehicles and encourage their adoption across the region.

 Key Incentives for Electric Vehicles

 Under the new policy, the first 200,000 electric two-wheelers will benefit from a  100% exemption on road tax and registration fees. Additionally, 5,000 electric commercial four-wheelers and 20,000 three-wheeler electric auto rickshaw will enjoy these exemptions. The policy extends its support to 10,000 electric LCVs in India, 5,000 private electric four-wheelers, and 500 electric buses.

 To facilitate this growth, the government plans to establish a robust ecosystem for electric mobility vehicles, which will include essential infrastructure like charging station and battery swapping stations. This infrastructure is crucial for addressing the pollution problem in India and enhancing urban mobility. Contributing significantly to pollution control efforts across the state.

 The government policies for electric vehicles in India are pivotal in driving the shift towards sustainable transportation. By offering a subsidy on electric vehicles, the Telangana government aims to alleviate financial barriers, making it easier for consumers to choose greener options. The introduction of the3 wheeler electric auto rickshaw exemplifies the state’s commitment to versatile urban mobility solutions, catering to diverse needs in crowded cities.

Additionally, the focus on developing electric LCVs in India enhances the logistics sector, promoting efficiency while addressing environmental concerns. With incentives for electric four-wheelers, these initiatives collectively work to promote electric vehicles, significantly improving urban mobility in India and contributing to cleaner air in urban areas.

There is a need to reduce dependence on the import of lithium ion batteries for electric vehicles, one of the key components in electric mobility vehicles, road transport and highways minister Nitin Gadkari said on Thursday.

 “In electric mobility technology, the most important thing is that we should not depend on imports for the materials used to make these vehicles. Our priority is to manufacture all these materials, particularly lithium ion batteries, in India,” Gadkari said at the e-mobility conclave.

 “We have granted mining rights for lithium ion to two private companies. We expect to secure raw material as early as possible. At the same time, we are developing technology and conducting research on sodium ion battery technology,” he added. Sodium ion battery vehicles represent a promising alternative in this research effort.

 Lithium cells are the building blocks of rechargeable battery technology for EVs, laptops, and mobile phones. Currently, India is heavily reliant on imports of these cells, as the battery metal is not widely available domestically. This is also one of the reasons why battery manufacturing has not picked up significantly in India, even as the finance ministry announced a customs duty exemption on lithium-ion cells last year to lower costs. Globally, lithium-ion cell manufacturing is dominated by China, followed by the US, Thailand, Germany, Sweden, and South Korea.

 According to the minister, there is a pressing need to produce more e-mobility vehicles, as higher volumes will ultimately reduce costs. “Electric vehicles are economically viable compared to petrol and diesel vehicles,” he stated. “In due course, I expect more people to adopt this technology.”

1.EV TECHNOLOGY IS BREAKING NEW GROUNDS AT FREQUENT INTERVALS AS DISCUSSED BELOW, SHOWING PROMISE OF A PRICE/PERFORMANCE PARITY WITH ICE VEHICLES BY 2025 RESULTING AND THE DOMINANT MOBILITY SOLUTION

• • Declining Battery Costs: Battery prices are expected to halve in less than 10 years.
  • Improved EV Performance: Electric vehicle performance is projected to double over the next decade.
  • Reduced Charging Times: Charging duration is decreasing from 5 hours to under 1 hour, addressing range anxiety.
  • Lower Energy Costs:The energy cost per kilometer for electric vehicles is 4 to 5 times less than that of gasoline vehicles.
  • Higher Initial Ownership Cost: Electric vehicles currently have a higher upfront purchase price.
  • Government Vision:The Government of India’s Automotive Mission Plan 2016 aims for safe, comfortable, and efficient mobility, focusing on environmental protection and affordability in both public and personal transport.

2. CONCERNS WITH IC-Engine VEHICLES-INDIA CONTEXT

• Nearly 80% of India’s crude requirement is imported.
• Diesel based causes air quality degradation that perpetuates climate change. 
• Diesel exhaust contains pollutants causing major health risks such as heart diseases, lung cancer etc

 3. ELECTRIC VEHICLES IN INDIA

Electric vehicles (EVs) in India have garnered limited public interest, despite being on the market for quite some time (the REVA was launched in 2001). This can be attributed to several key factors:

1. Insufficient Charging Infrastructure: The lack of widespread charging stations and long charging times associated with current battery technologies hinder adoption.

2. Limited EV Options: There is a scarcity of electric vehicle models across various segments that can compete with traditional internal combustion engine (ICE) vehicles.

3.Battery Technology Maturity: Existing battery technologies have not yet reached a level of cost parity with ICE vehicles, affecting the overall appeal of EVs.

4. NEED FOR EV POLICY

India currently has around 20 cars per 1,000 people, a striking contrast to the 800 cars per 1,000 people in the United States. This discrepancy highlights a significant growth opportunity for the Indian auto market, but it also brings challenges related to energy security and the need to balance environmental sustainability with infrastructure development. By 2026, the market is projected to grow substantially, with estimates ranging from 9.8 million (at a growth rate of 5.8%) to 13.4 million (at 7.5%).

In response to these challenges, the Government of India introduced the FAME scheme in 2015, aimed at boosting electric vehicle (EV) adoption through subsidies. This initiative prioritizes four key areas: technological advancement, demand stimulation, pilot projects, and the expansion of charging infrastructure. However, despite government efforts, the pace of EV adoption has not met expectations. The primary obstacles remain inadequate charging infrastructure and the high costs coupled with the limited performance of current EVs.

Looking ahead, advancements in EV and battery technologies are projected to bring price and performance parity with internal combustion engine (ICE) vehicles by 2025. Yet, the persistent lack of charging infrastructure continues to be a critical barrier to mass EV adoption. Addressing this issue will be essential for unlocking the full potential of electric vehicles in India and ensuring a sustainable automotive future..

5. ADVANTAGE TELANGANA FOR AN EV ECOSYSTEM DEVELOPMENT

The state boasts the necessary social and urban infrastructure to create a strong demand and nurturing environment for electric mobility technology. Since its formation, Telangana has attracted significant investments from both new and established automotive companies, hosting major players like Mahindra & Mahindra and MRF, as well as Hyundai and ZF’s global R&D centers.

Telangana also has a robust legacy in Electric and Electronics manufacturing, particularly in core, defense, and aerospace sectors, supported by public sector units like ECIL and BHEL. The state benefits from a skilled workforce supplied by premier technical institutes such as IIT and IIIT, which can be leveraged to enhance research and innovation initiatives for electric mobility vehicles.

With unmatched industrial infrastructure, Telangana offers a vast land bank, 24/7 power and water supply, and a strong logistical advantage due to its strategic location and excellent highway connectivity. Additionally, the state has an abundant local labor supply to support all shop floor activities in a manufacturing setting.

6.VISION STATEMENT 

To establish  Telangana as the benchmark state in  India and a  showcase model of  International standards for  electric mobility vehicles adoption across segments  (personal,  shared and commercial), supported by a world-class infrastructure and ecosystem. 

7. MISSION STATEMENT

The EV policy in Telangana aims for 100% migration to electric vehicles by 2030, aligning with the Government of India’s vision. This ambitious goal is backed by the development of enabling infrastructure and a robust local manufacturing base for electric vehicles and their components.

8. OBJECTIVES

1. To attract investments worth 3.0 B USD and create employment for 50000 persons by 2022 through EV manufacturing & charging infrastructure development.
2. Provide best in class ecosystem & infrastructure to make Telangana the EV Hub of India
3. Develop a proving ground for viable Business models through accelerated demand for EVS
4. Promote innovation in EVs and other emerging trends such as Autonomous/Connected Mobility
5. Make Telangana state the preferred destination for Electric Vehicle &component manufacturing
6. Creating a pool of skilled workforce for the Industry
7. Create an ambiance for Industry & Research institutions to focus on cutting edge research in EV technologies

9.STRATEGIES

1. Clear Definition of incentives on Supply and Demand Side of an Electric Vehicle ecosystem
2. Support and a clear roadmap for developing charging infrastructure in the state
3. Incentives related to various components of ownership cost of Electric Vehicles 
4. Mandating Use of EVs at Institutional Level Starting with Government entities
5. Establishing a start-up ecosystem to nurture innovation in EV technology space
6. Support for Research & Innovation in Electric, Autonomous & Connected Mobility 
7. Emphasis on skill development for EV design, development & manufacturing
8. Promote manufacturing of Battery cells and packs through special status/ incentives

10. POLICY MEASURES

This policy builds upon the Telangana Industrial Policy framework 2014 that defined the Auto Sector as one of the priority sectors. However, considering the current shift in the Auto Sector towards Electric Vehicles, special status is accorded here to EV and EV component Industry. Both demand and supply side is assigned equal importance for policy support as demand is key to establishing an EV ecosystem. 

10.1 Demand Side Incentives: 

• a) Road tax exemption for all-electric vehicles till 2025, expected year of price parity with ICE vehicles
• b) Simulate demand for EVs through areas of quick adoption such as Taxi services, Public Transport and Institutional transportation
• c) Establish an adequate network of charging/swapping 
• d) Preferential Allotment will be made to Make in Telangana Vehicles for Government Orders

10.1.1 EV in Shared Mobility

• a) Battery operated shuttle services at all Hyderabad Metro Stations for last-mile connectivity
• b) A time-bound mandate for all auto rickshaws within GHMC to switch to EV, followed by other cities
• c) Encourage cab operators/ aggregators to switch to full EV fleet in a phased manner.
• d) Permission for corporate ownership of e-auto rickshaws/e-Ricks to enable entrepreneurship and create jobs for the economically backward segments. 
• e) Extension of transport department retro fitment rule for existing vehicles.
• f) Permission for ARAI certified E-rickshaws in the state.

10.1.2 EV in Public/Institutional Transport

• a) Telangana State Transport corporation to set a target of 100% electric buses induction into their fleet.
• b) Airport flight shuttles and PUSHPAK buses to be transitioned to EV on priority
• c) Government vehicles (owned and contractual) to switch to all-electric by 2025, in a phased manner.
• d) Contract carriage permits for private operators with EV fleet operations
• e) Tourist places (national parks, ecological sites) in the state to switch to all EVs for transportation in and around their premises. 

10.1.3 EV in Corporate Transport, Hospitals and Educational Institutes

• a) Corporate  offices  with an annual  turnover  of  Rs  50+  Crores  operating  within  city  limits  to compulsorily migrate 50% of their employee commuting fleet to EVs 
• b) Allow use of CSR funds for electrification of employee commuting fleets
• c) Encourage educational institutions & hospitals for a 50% switch of their Buses/Derivatives/Passenger vehicles fleet to Electric Vehicles

10.1.4 EV in Freight Transport, Logistics & Delivery Services and other applications

• a) Encourage all freight and logistics firms to use Electric Vehicles in a phased manner
• b) Intra-city goods delivery services (sub 2T category) to switch to EVs only by 2030 in a phased manner 
• c) Encourage all app-based and e-commerce delivery services to migrate 100% of their vehicles fleet to EVs 
• d) Use of Battery operated Application vehicles will be encouraged in government departments such as Municipal Corporations, Postal Services etc. across Telangana State.

10.1.5 EV for personal mobility

• a) Exemption of registration charges on personal vehicles purchase
• b) Interest-free loans up to 50% of the cost to all state government employees for the purchase of EVs
• c) Only Electric vehicles will be allowed in high traffic density areas, Heritage zones, IT SEZs and similar EV Zones in Hyderabad.
• d) Free Parking in public parking places and Toll exemption on State Highways for EVs

10.2 Supports for Charging Infrastructure

• a) Adequate policy support will be provided for the development of charging/swapping infrastructure 
• b ) Government  of  Telangana  will work  with  GOI  for the  development  of common  standards  for batteries and charging infrastructure to ensure interoperability wherever possible. 
• c) Government will set up first 100 fast charging stations in GHMC and other cities in a phased manner.
• d) Charging points for personal vehicles of Government employees would be provided at Government office parking lots, starting with Hyderabad, followed by other cities in the state.
• e) A viable business model will be developed for Private players to setup ARAI compliant EV charging stations/ infrastructure at public places such as airports, railway/ metro stations, parking lots, bus depots, markets and malls.
• f) Electricity distribution companies will bring in amendments to their policies to enable setting up of private charging station and allow re-sale of power
• g) A separate category of Power tariff will be created for EV Charging, both public and private. Duty exemption on power tariff will be extended to public charging stations for duration of 5 years
• h) Land belonging to Government Agencies within Hyderabad and other cities will be offered to private players on long term lease at subsidized rates and 2 year moratorium period on rental payment for setting up charging/swapping stations, through a transparent bidding process. 
• i) Provision for charging spots will be made mandatory in all commercial buildings 
• j) Amendment to building and construction laws will be made to ensure charging infrastructure is integrated at the planning stage itself for all new constructions. 
• k) All existing apartment associations with 200+ families will be encouraged to provide charging points in parking lots.
• i) Existing Residential Townships with 1000+ families will be encouraged to develop charging stations
• m) 75% of SGST paid on the fast charging equipment / machinery procured by any entity for setting up private/public/institutional charging stations will be reimbursed.
• n) Supply of Renewable energy will be ensured on preferential basis at special tariffs for EV charging stations with zero connection cost and wheeling charges
• o) A battery disposal infrastructure model will be created to facilitate deployment of used EV batteries
• p) Charging/ swapping station will be provided at every 50 kms within state boundaries on highway.
• q) HMR stations and TSRTC Bus depots (across state) will provide reserved parking and free charging stations for two wheelers in their parking zones

10.3 Supply Side Incentives:

The Government will provide benefits/incentives, depending upon the scale of investment as per the categories defined in MSMED act 2006 and Telangana Industrial Policy framework 2014. Investments beyond 200 Crores will be treated as Mega Projects and will be offered tailor made benefits

10.3.1 Infrastructure Support: 

EV Cluster: A designated EV cluster spread over 1500-2000 acres catering to EV/EV component manufacturing for two wheelers, Cars, Buses & Trucks will be integrated with the Automotive Park plan. The EV cluster will have common facilities specific to the requirements of EV units, as given below

1. Shared facilities to meet staffing and training requirements
2. A common facility for Design, prototyping and testing available to all units in the cluster

An Automotive Suppliers Park(ASP) to improve the logistics competitiveness for the units

• Common infrastructure such as Drainage/ ETP/ STP& utilities such as Power, Gas &Water
• A State-of-art Business environment with facilities such as Convention & exhibition centres
• A Logistics Hub to provide with multimodal transport for safe and efficient handling of cargo

Built-Up Space with ready factory sheds will be developed to be used mainly by MSME units. 

a) Automotive Electronics Cluster: An  Automotive  Electronics Cluster will be developed within the proposed Electronics city near  Hyderabad where  Special status and incentives will be accorded to units manufacturing electronic components including batteries cells/Packs for Electric Vehicles.

b) Land: Allotment of land will be carried out across three categories:

• Plots in Integrated Automotive Parks & EV Clusters developed by TSIIC for purchase or on lease with common facilities including ETP, internal infrastructure and other common facilities
• Individual Plots on Stand-Alone Basis outside the Industrial Parks developed by TSIIC
• Land for Development of Automotive Park / EV Cluster developed through privately owned or PPP modes of investments

c) Industrial Water: Government has earmarked  10%  water from  all  existing  and  new  irrigation sources for industrial utilization. Water will be provided at subsidised rates to Mega Projects

d) Industrial Power: 24*7 Power supply is a norm for Industrial units operating in Telangana State. Furthermore, Power Tariff Subsidy and duty exemption will be extended to EV units in the state.

e) Support Infrastructure: Support infrastructure like roads, power and water will be provided at door  step  of  the  industry  for  standalone  units  through  Infrastructure  assistance  under  IIDF 

f) Environmental Infrastructure: In the Auto Parks / EV Clusters, Government will facilitate the development of a Common Effluent Treatment Plant (CETP)/Sewage Treatment Plant (STP) in PPP mode by engaging experienced firms.

10.3.2 Research & Development: 

Considering that the EV technologies are fast evolving, the need for Research & Development is key to accelerate the parity point of price/performance with ICE vehicles. It will also help develop solutions as per local operating conditions and local supply chain considerations. 

• Smart Mobility Technologies Cluster (SMT): T-Hub has launched a start-up incubation program named Smart Mobility Technologies cluster, to promote innovation in advance mobility space, particularly EVs. SMT Cluster will form a mentor board in partnership with EV, shared mobility, and Energy firms to help start-ups translate their ideas into a viable business model. An Incubation fund with Industry support will be created to provide financial support to Start-ups in EV space. 
• Mobility Engineering Cluster: A Mobility Engineering will be developed with Industry partnership. This facility with its state of the art infrastructure is envisaged to establish a global benchmark in design, development and validation for EVs and autonomous/ connected mobility. 
• Centre of  Excellence: State  Government will partner with premier  Technical  Institutes and research establishments across the state to  establishing  Centre of  Excellence for conducting market-focused research on Battery Technologies, battery management, motors, and controllers. 
• EV Research Hub: A dedicated facility with special incentives will be developed to house EV R&D centers by local and global EV Majors.  
• Telangana EV Innovation Fund: An  Innovation fund will be created by the government  to offer financial  support to  EV  OEMs,  ancillaries, and  Start-ups  for  research  and  innovation in  Battery technologies.  
• EV Testing Facility: One of the major costs for the industry is the testing of components and vehicles for compliance with global standards. Telangana State will pursue with the GOI to bring a National Automotive Testing and R&D Infrastructure Project (NATRIP) for Electric Vehicles to the state
• T-Works  Automotive  Prototyping center: Recognised as  India’s largest  Prototyping  Center,  T-WORKS  will have a  dedicated wing for prototyping of  Electric  Vehicle components/assembly. Industry partnership in the same will be invited from EV OEMs and large component manufacturers. The facility will serve start-ups and MSME units in the EV space at subsidised rates.

10.3.3 SKILLING

The availability of quality manpower in good supply is key to supporting any  Industrial operation. The state will identify nature and quantum of the skill set required by the institute to develop and execute training programs on EV design, development & manufacturing through various channels

• Telangana  Academy of  Skill  and Knowledge(TASK):  On lines of the  National  Skill  Development  Corporation  (NSDC),  a  not-for-profit company under the  Companies  Act,  2013.  A dedicated Skill development centre for EV/EV component manufacturing on PPP model will be set up under the aegis of TASK and with support from EV Industry. 
• Finishing  Courses: Short  term  (4-6  months)  finishing course post completion of graduate Engineering courses will be introduced  in select  Engineering  Colleges and  Premier  Technical Institutes in collaboration with  Global  Tech  Universities.  These courses will be designed in consultation with EV Industry and will include short internship module at partnering OEMs 
• PG Courses on EVs: 2-year PG course on EV Technology with scholarship assistance will be initiated in partnership with premier institutes such as IIT Hyderabad and IIIT Hyderabad and in consultation with the EV industry. NIT Warangal is already running one such master’s programme.

10.3.4 Battery Cell Manufacturing and Assembly Promotion

Manufacture and assembly of Advance* batteries will be encouraged in the State by means of special status and incentives. 

*Lithium-ion and other battery chemistries with an energy density higher than the Li-ion battery 

10.3.5Charging/swapping Equipment Manufacturing Promotion

Development of a charging network is dependent on the quality supply of charging/swapping equipment &machinery. 

10.4 OTHER POLICY INTERVENTIONS

• Single-Window System: Telangana implemented TS i-PASS in 2015, an Industrial Project approval system based on self-certification. It also protects Investors interest with Right to Single Window Clearance and provision for penal action on the officers who delay the applications. 
• Exit Mechanism: Considering the high volatility  and the risk associated with maturing EV Technologies, the Government of Telangana in consultation with the Government of India will put in place a mechanism for a reasonable exit strategy for the EV enterprises. 
• Labour Environment: Subject to applicable laws as far as possible, the Government will consider giving permission to the Electric Vehicle and components industry for 24×7 (three shifts) operations, employment of women in night shifts, flexibility in employment conditions including working hours for women and shorter/ longer shift timings and hiring of contract workers. 
• Technical Committee to certify/define an EV enterprise: A Technical Committee will be constituted with a  mandate to certify/define  Vehicle/  components  Manufacturers including  EV  lithium-ion battery units claiming incentives and concessions under Telangana Electric Vehicle Policy.
• Steering Committee for EV Charging Infrastructure: A steering committee will be constituted with a mandate of time-bound implementation of charging station network in Hyderabad City followed by other cities/smart cities within Telangana State
• Telangana  State  EV  Advisory council: A  “State  Electric  Vehicle  Advisory  Council”  shall be constituted with support from SIAM, ACMA, SMEV, CII, FICCI and other industry associations. This council and will have distinguished members from Industry, Academia and Research who will review the progress of EV policy initiatives on both demand and supply side. The council will advise the Government on remedial measures needed to address any concern as well as course corrections at policy level. This Consultative Committee shall also facilitate coordination with the Government of India in areas requiring support for effective development of EV ecosystem in the s

The Shift towards Electric Mobility Post-COVID-19

 In the wake of COVID-19, awareness around health, hygiene, and environmental sustainability has significantly increased. Communities are embracing these values as essential components of daily life. Businesses have responded by adapting their practices to prioritize safety and ecological responsibility. Among these adaptations, the emergence of electric mobility vehicles has become increasingly important. EV wagon manufacturers in India are offering attractive options for those seeking cost optimization while contributing to an eco-friendly business model.

 Why Electric Vehicles are Attractive Options

 With a focus on sustainability, electric vehicles (EVs) present a viable alternative to traditional fuel-powered transportation. The Indian government has implemented special incentives and initiatives that make EVs highly attractive for logistics and transportation. For instance, exemptions in taxes significantly lower the total cost of ownership, making electric rickshaws and battery rickshaws appealing choices for businesses.

 Optimized Logistic Solutions

 Many businesses currently lack their own fleet for logistics, often due to the complexities of fleet management. However, with the rise of e mobility vehicles, acquiring high-yield logistics solutions has become easier and more efficient. Transitioning from a fuel-based fleet to a zero-emission passenger e rickshaw or electric cart represents a transformative shift. These vehicles not only reduce operational costs but also eliminate harmful emissions from internal combustion engine (ICE) vehicles, making commuting more environmentally sound.

 For example, under new regulations, you could purchase Adapt Motors’ SWEEKAR model for just one hundred thousand rupees—substantially lower than any fuel-engine alternative, which incurs higher taxes and costs.

 Driving Down Your Carbon Footprint

The lower costs associated with EVs are just one reason to make the switch. With climate change being a pressing global concern, adopting a more sustainable vehicle is essential for reducing carbon emissions in India. The pandemic has heightened awareness of individual responsibility to contribute positively to society, further driving the implementation of electric mobility technology in businesses.

 The government is actively promoting the use of EVs to help achieve India’s sustainability targets. By utilizing the available incentives, businesses can lower their carbon footprints while demonstrating a commitment to environmental responsibility.

 Financing Your Electric Vehicle

 Deciding how to finance your new EV can initially seem daunting. Whether to buy outright or lease the vehicle requires careful consideration, and professional guidance can be invaluable in making this decision.

At Adapt Motors, we provide comprehensive support to help you navigate the EV landscape, including:

– Choosing the Right Vehicle: We ensure you select fully electric vehicles that meet emissions and range criteria, steering clear of hybrid models that do not qualify for discounted tax options.

– Financing Options: Whether you choose to lease, enter a Personal Contract Purchase (PCP), or buy the vehicle outright, we’ll help you understand the implications for your business.

– Infrastructure and Training: We assist in setting up the necessary infrastructure and provide training for drivers on vehicle usage and maintenance, optimizing mileage and efficiency.

 Now’s the Time to Switch to an EV

Choosing an electric vehicle as your company car is not just an investment in a vehicle; it’s an investment in a sustainable future. By opting for EVs, businesses can achieve significant cost savings while contributing to a cleaner environment.

Explore your options with Adapt Motors, where we specialize in high-spec, sustainable electric mobility vehicles. Our range includes both passenger and goods carriers, designed to meet your operational needs while supporting your commitment to sustainability. Discover our e mobility solutions today!