Karnataka tweaks EV policy to attract investment

Two key amendments to the Karnataka Electric Vehicle and Energy Storage Policy were approved by the state cabinet on Thursday to attract more investments, home minister Basavraj Bommai said.

The cabinet decided to give 15% capital subsidy to investors in the electric vehicle (EV) sector on value of fixed assets over five equal annual payments, with maximum land covered under this incentive being 50 acres.

“In 2017 itself there was a policy, but it needed some amendments. Since there is a lot of competition, some companies have gone to other states…to give more concessions,” Bommai said on Thursday, in an apparent reference to cab aggregators Ola, which decided to set up ₹2,400 crore EV manufacturing facility near Hosur in Tamil Nadu, despite being a Bengaluru-headquartered company.