Haryana EV policy proposes tax benefits for hybrids, imported EVs

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Haryana’s has announced its EV Policy in which this calendar year is designated as “Year of the Electric Vehicles” and which includes discounts and benefits for residents as well as the automotive industry. These decisions were taken at a recent cabinet meeting held under the chairmanship of chief minister M. L. Khattar.

Unlike other states, where hybrids have not been accommodated for EV exemptions, Haryana is offering hybrid vehicles as a 15 percent flat discount to at a maximum ceiling of Rs 300,000 for passenger cars costing below Rs 40 lakh. This sop is expected to benefit the Honda City eHEV as also the Toyota Hyryder Urban Cruiser and Maruti’s offering code-named YFG which will debut later this year. This sop will reduce the eHEV Rs 19.53 lakh price tag by Rs 2.9 lakh.
 
The state has also offered sops to pure EV passenger makers including Tata Nexon EV, Hyundai Kona and BYD vehicles which will also benefit from a 15 percent discount on purchase of a car that costs between Rs 15 lakh and Rs 40 lakh, and with a maximum tax break of Rs 6 lakh. The ex-showroom costs for the premium XZ+ Lux variant of the Nexon EV costs which costs Rs 17.4 lakh will drop by about Rs 2.6 lakh.

The 15 percent offer has also been extended to two wheelers, three wheelers who will have an additional benefit in terms of a full rebate in motor vehicle tax and relaxation in registration fees.

With this policy, Haryana joins other states that are trying to make EVs more affordable such as Karnataka, Gujarat and Telangana. A total of 13 states have formulated such policies.

The state government plans to woo global EV makers to import their vehicles offering a likewise 15 percent discount of up to Rs 10 lakh for imported electric cars which cost between Rs 40 lakh and Rs 70 lakh. These discounts are valid only for early bird buyers and will be discontinued later.

For OEMs and component makers, those across micro, small, medium, large and mega categories will receive 50 percent of State GST reimbursed by the government for a 10-year period. Besides this, mega industries in EVs will get full-capital subsidy (FCI) of 20 percent of FCI or Rs 20 crore whichever is lower; larger industry will get a subsidy of 10 percent of FCI up to Rs 10 crore, medium-sized industry 20 percent of FCI up to Rs 50 lakh, SSI units will get  20 percent of FCI up to Rs 40 lakh and micro industry 25 percent of FCI up to Rs 15 lakh.

Model cities
The policy also says Gurugram and Faridabad will be declared model Electric Mobility (EM) cities with phase-wise goals to adopt EVs and charging infrastructure to achieve 100 percent e-mobility. The policy proposes the 100 percent conversion of the Haryana State Transport Undertaking’s fleet into electric buses, fuel cell or other non- fossil-fuel-based technologies by 2030.

In addition to this, the Department of Town and Country Planning (TCPO) shall mandatorily include the provisions for charging of electric vehicles in places such as Group Residential buildings, commercial buildings, institutional buildings, malls and metro stations.

New tech
The policy also plans to promote R&D for EVs by granting 50 percent of the project cost up to Rs 1 crore for developing new electric charging technology and up to Rs 5 crore for developing new electric vehicle technology. The policy also states that “a one-time subsidy of Rs 25 lakh shall be extended to the first 20 colleges, ITIs and polytechnics for setting up infrastructure related to the R&D of the EV.”

The state government has also announced fixed incentives of up to 1 crore rupees for businesses that establish EV battery disposal units in the state.  

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