Electric Cars in India Could Soon Become a Common Sight as Andhra Pradesh Aims at Rs 30,000 crore Investment in Electric Vehicle Industry

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In a first, Andhra Pradesh is looking to make a radical move towards electric cars by aiming to attract Rs 30,000 crore in investments. The investment would be used to provide incentives and capital subsidies to automobile manufacturers and charging equipment makers. The Andhra Pradesh government aims at helping India achieve its goal of limiting the number of fossil fuel powered vehicles on the road.

“Fast government approvals make it (Andhra Pradesh) ideal for manufacturing,” the state’s secretary for industries and commerce, Solomon Arokiaraj, told Economic Times. “Andhra (Pradesh) aims to emerge as a hub for the electric mobility ecosystem in the country.” Besides capital subsidies, Andhra Pradesh proposes to offer concessional land and power, complete state GST reimbursements, and special incentives for battery manufacturing to draw investments in the electric-vehicle space.

India’s capital, New Delhi is also planning for an all-electric fleet of cars on roads by the year 2030. However, a policy announcement on part of the Delhi government is yet to be made. But according to certain reports, the state’s government is working on a zero subsidy electric- vehicle policy.

Andhra Pradesh, on the other hand, is going a different route. Its government is planning to waive off registrations and road tax on electric vehicles, along with increasing the subsidy on petrol and diesel.

The state expects to put in place an electric-mobility policy by next month, ahead of a proposed framework by the central government. “Andhra (Pradesh) has achieved a growth rate of 11% in 2016-17, and has some of the most forward-looking policies. It has six existing ports and eight upcoming ports, numerous airports, vast tracts of land and 24×7 power quality power supply,” Arokiaraj said.

More good news is in store for the future of electric vehicles, as Japan is in talks with the government of Andhra Pradesh to make electric cars for the Indian market. Infact, Japanese carmaker Toyota has already signed a preliminary agreement with Andhra government to introduce electric cars in the city of Amravati.

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