Jaipur: RIICO is planning to develop an Electric Vehicle (EV) Research and Manufacturing Zone in the NCR part of the state to take first-mover advantage in the sector.
EV sector has been included as one of the thrust sectors in the government’s Industrial Development Policy-2019.
A host of incentives such as investment support on SGST, employment subsidy, electricity duty exemption, rebate in power tariffs, stamp duty relief, mandi fee exemption, and rebate on land conversion charges are offered to industry in the Rajasthan Industrial Promotion Scheme-2019.
But those sectors classified under the thrust sector get additional incentives. In the industrial policy, the government has announced that it would separately roll out a new policy for the sector which is in the works now by the transport department.
“We have a throbbing automobile manufacturing ecosystem in the state, especially in the Bhiwadi and Neemrana area. This will certainly complement our efforts for setting up a cluster for the EV segment,” said a senior RIICOofficial.
In the recently announced Budget for 2021-22, the government has brought down the criteria for offering incentives to EV and its component manufacturers. Companies with an investment of Rs 25 crore will be eligible for benefits. Earlier, investments above Rs 50 crore were allowed to avail the incentives.
The official said that while Tesla’s entry into India may not have a large-scale direct impact on the sector because its cars are very costly and the volume would be very less, but it would certainly expedite the developments in the EV industry. This would require a network of component manufacturers and suppliers.
In fact, RIICO has already written to Tesla to consider Rajasthan as a base for its future manufacturing operations and offered to make land available wherever the company wants.
The official said that they are currently finalizing the location where the Electric Vehicle (EV) Research and Manufacturing Zone would come up. Also, the incentives package may be announced in the EV policy to be rolled out soon.
To encourage the support infrastructure for EVs, e-charging and swapping stations were also accorded thrust sector status in the 2021-22 Budget.