Andhra Pradesh’s EV Policy Aims for 100 Percent Fleet Electrification
The new policy aims to drastically increase EV adoption by integrating stakeholders such as public transportation providers, private fleet operators, and charging infrastructure developers.
December 12, 2024. By Aishwarya
The new policy, which spans from 2024 to 2029, seeks to address the slow adoption rates of EVs and expand the local manufacturing ecosystem.
Recent statistics reveal that Andhra Pradesh is home to approximately 1.78 crore vehicles, with only 1.3 lakh being battery electric vehicles (BEVs) and a mere 817 strong hybrid EVs. The state is currently operating 601 public charging stations, averaging one station every 205 kilometers, highlighting the pressing need for enhanced infrastructure to support electric mobility.
The new policy aims to drastically increase EV adoption by integrating stakeholders such as public transportation providers, private fleet operators, and charging infrastructure developers. This collaboration is expected to foster a comprehensive ecosystem that not only boosts EV manufacturing but also increases consumer demand for electric vehicles.
Andhra Pradesh has set ambitious goals to boost electric vehicle (EV) adoption by 2029. The state aims to register a minimum of 200,000 new electric two-wheelers, 10,000 new electric three-wheelers, and 20,000 new four-wheeler battery electric vehicles (BEVs).
To support the rapid integration of electric vehicles into public transport, the government plans to achieve 100 percent electrification of the Andhra Pradesh State Road Transport Corporation (APSRTC) fleet.
Additionally, the policy targets include establishing a charging infrastructure with a density of one charging station per 30 kilometers along notified green corridors and one station per 3x3 kilometer grid in designated e-mobility cities. A significant investment is planned with a corpus fund utilization of INR 500 crore aimed at building these e-mobility cities.
The policy provides robust support for Micro, Small, and Medium Enterprises (MSMEs) engaged in manufacturing related to electric vehicles. These businesses are eligible for an investment subsidy of 35 percent of eligible fixed capital investments up to a maximum of INR 7 crore, or 5 percent of annual turnover for three years, with the total not exceeding INR 10 crore.
They will also benefit from a power tariff reimbursement at INR 1 per unit, with an annual cap of INR 15 lakh per enterprise for six years. Additionally, 100 percent reimbursement of net State Goods and Services Tax (SGST) paid to the state is provided, ensuring the incentive amount does not exceed 100 percent of eligible fixed capital investment (eFCI).
Enterprises run by BC/SC/ST/minority/physically abled/transgender investors receive enhanced subsidies of 45 percent of fixed capital investment or 15 percent of annual turnover for three years.
Operators of charging infrastructure will be supported through capital subsidies of 25 percent on the cost of public charging stations, capped at INR 3 lakhs per station for the first 5,000 EV public charging stations over five years. They will also benefit from power tariff benefits and mandated installation of charging stations in new commercial and residential developments.
The government is also implementing strategic non-financial incentives, such as the development of e-mobility cities and green corridors, with a dedicated investment of INR 50 crore per model city. This aims to create an integrated infrastructure that facilitates the easy adoption of electric vehicles.
The policy is also promoting retrofitting existing vehicles with certified electric technologies and supports extensive research and development in EV technology with a grant of INR 250 crore for innovative mobility solutions, hence positioning Andhra Pradesh as a leader in sustainable transportation.
please contact: contact@energetica-india.net.
Aman Mehtani
Founder & Group CEO
ADM Group Offers Smart, Sustainable Solutions for Global Automotive Industry
Gaurav Dolwani
CEO
From Scrap to Sustainability: LICO Materials’ Circular Economy Approach
Gaurav Kumar
Head of Supply Chain and Manufacturing
Euler Motors Bridges Cost Gap Between EVs and ICE Vehicles with Localization
Shveta Arya
India Region Leader
Powering India’s Mobility Future: Cummins Showcases Advanced Power Solutions at Bharat Mobility
Samkit Shah
Co-Founder
Jitendra EV Leading Hybrid EV Revolution with Hydrix