Author: PPD Team Date: 16/12/2024
Andhra Pradesh has launched its Sustainable Electric Mobility Policy 4.0 (2024-2029) to establish itself as a global hub for electric vehicle (EV) manufacturing and achieve carbon neutrality (Scope 1 emissions) by 2047.
The policy targets the registration of 200,000 electric two-wheelers, 10,000 electric three-wheelers, and 20,000 four-wheeler battery EVs, along with a robust charging infrastructure featuring stations every 30 km along green corridors and within a 3×3 km grid in e-mobility cities.
A Rs 5 billion corpus fund supports e-mobility cities and startup incubation centers. MSME manufacturers can access a 35 per cent investment subsidy (up to Rs 70 million) or 5 per cent annual turnover support for three years, with higher incentives of 45 per cent or 15 per cent turnover support for BC/SC/ST/minority/specially-abled/transgender-led enterprises.
Large manufacturers benefit from turnover-linked incentives tied to domestic value addition, capped at 25 per cent of fixed capital investment, with early participants eligible for up to 40 per cent investment subsidies.
The Andhra Pradesh State Road Transport Corporation aims for 100 per cent fleet electrification. Charging/swapping station operators receive 25 per cent capital subsidies (up to Rs 300,000 per station), and mandates are set for charging infrastructure in new constructions.
The policy also promotes recycling and scrapping facilities under the Vehicle Scrapping Policy with up to 45 per cent investment subsidies and additional reimbursements.
Private industrial parks receive capital subsidies and land-related fee waivers, while EV buyers benefit from purchase incentives of 5-10 per cent of the ex-showroom price (subject to caps) and road tax exemptions for five years on eligible vehicles.