Karnataka released its first EV policy in 2017 to attract investments
into the sector. It is the first state to have a policy for the EV industry. Following
that, many states such as Tamil Nadu, Telangana, Andhra Pradesh, Haryana and
Gujarat, came up with their EV policies, providing better deals and giving tough
competition to the state of Karnataka.
Therefore, Karnataka has decided to revise its earlier EV
policy to stay competitive. Karnataka’s revised EV policy with attractive subsidies
on land, plant and machinery along with production-linked incentives
(PLI Scheme) is expected to counter other states in the game and attract more
investments into the state.
Karnataka’s revised EV policy came after many EV companies choosing
Hosur in Tamil Nadu to set up their manufacturing facilities. Karnataka has a
rich ecosystem for EVs. But some companies have recently opted for Hosur, a
town that takes advantage of Bangalore’s ecosystem to start their manufacturing
operations. “We realised the need to be competitive in land prices. The revised
EV policy has attempted to address this issue along with several other issues,”
has said Gunjan Krishnan, Commissioner for Industrial Development, Government
of Karnataka, speaking at a webinar on electric mobility organized by India
Trust.
The state government has identified land in Ramanagara near
Bangalore to set up EV cluster with a comprehensive ecosystem for OEMs, their supply
base industries and testing centres. The cluster will also provide facilities to
develop skills related to the EV sector.
It is a great opportunity for MSMEs to foray into the EV industry,
capitalizing on the advantages of Karnataka’s revised EV policy. The MSMEs can act
as the supply base for the OEMs, supplying them auxiliary parts and helping
them to stabilize the supply chain.
If you are planning to enter into the EV industry, then kindly
register with SolutionBuggy and get help from India’s top EV experts who can
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