Jharkhand Gazette, No. 498, 14 October 2022

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THE

JHARKHAND GAZETTE

EXTRAORDINARY

PUBLISHED BY AUTHORITY

15 AASHWIN, 1944 (S)

No. 498

RANCHI, FRIDAY 7th OCTOBER, 2022

Department of Industries

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NOTIFICATION

6th October, 2022

Jharkhand Electric Vehicle Policy

2022

Memo No. 06/U.Ni./Vividh(Electric Vehicle)-20/2021……..1089……..

1. INTRODUCTION

Historically, advancements in the Internal Combustion Engine (ICE) technology have driven growth in the automobile sector, but lately, a host of factors including global warming, climate consciousness and improvements in battery storage capacity etc. have ushered in a shift towards electric Vehicles (EV). The Intergovernmental Panel on Climate Change (IPCC) in its latest report¹ has already warned that climate change is already 'irreversible' for centuries to millennia, ahead. Thus, to ensure sustainability, it is imperative that the future of transportation is electric with zero emissions and carbon footprint.

India is actively exploring cost-effective and viable solutions for sustainable development as well as reducing its excessive dependence on oil imports. The Indian EV market is still at a nascent stage,2 Jharkhand Gazette (Extraordinary), Friday, 7th October, 2022 comprising less than 1% of the total vehicle sales. However, the EV market has the potential to grow significantly in the coming years, as sales are expected to witness high double-digit growth rates annually till 2030. EVs have emerged as a promising and singular alternative that could help mitigate the adverse environmental impact caused by conventional vehicles.

To further drive the growth of EV sector in the country, the Government of India is increasingly pushing to develop appropriate monetary and fiscal responses to promote drive EV adoption in the country. A differential GST regime for EVs has been implemented by the Government of India as it is expected to help electric mobility gain momentum, under it, pure EVs have been kept in the 5% tax slab of the GST.

Jharkhand, in the pursuit of giving fillip to the shift from fossil fuel based medium of transportation to the electric medium with zero emissions and carbon footprint, trying to create a conducive eco-system by formulating attractive policy framework. The policy will try to capture the expectation of players from supply side as well as providing avenues for faster adoption of EV by demand side.

1.1. Government Initiatives in transitioning to Electric Vehicles:

In Feb'19, the Government of India (GoI) approved the 'Faster Adoption and Manufacturing of Electric Vehicles Phase II' (FAME-II) scheme with a financial outlay of Rs 10,000 crore to generate electric vehicle demand in the country. In June 2021, the GoI notified the Production Linked Incentive (PLI) scheme for 'the National Programme on Advanced Chemistry Cell (ACC) Battery Storage' (NPACC) for enhancing India's battery manufacturing capabilities by achieving a manufacturing capacity of 50 GWh. The NITI Aayog in April 2022 released the first draft of the 'Battery Swapping Policy' in an effort to catalyze the large-scale adoption of Electric Vehicles by promoting the adoption of Battery swapping technology implemented via 'Battery as a Service (BaaS)' business models.

1.2. Electric Vehicles in India

Year 2015 2016 2017 2018 2019 2020 No. of Vehicles

2 18 57 97 147 168 ('000)

Percentage share of

EV in total vehicle 0.01% 0.1% 0.29% 0.45% 0.65% 0.77% sales

2. EXISTING AUTOMOTIVEECOSYSTEM IN JHARKHAND:

Jharkhand is home to automobile industry with one of the India's leading automobile industry began manufacturing of commercial vehicle in early 1950s at Jamshedpur. More than 800 auto ancillary industries including auto components units have been set up subsequently at Jamshedpur and Adityapur to cater the needs of automobiles companies. Jamshedpur-Adityapur cluster is having unique advantages like availability of uninterrupted power and water from JUSCO in addition to other alternative sources of power from JBVNL, long history of industrial peace and ready access to Kolkata and Haldia ports for ease of imports and exports.

All types of auto grade steels are being produced at Jamshedpur since 1980s. All necessary infrastructures exist near Jamshedpur - Adityapur for auto ancillaries.

3. VISION, OBJECTIVE AND STRATEGY

The Jharkhand Electric Vehicle Policy 2022aims at creating favorable atmosphere for setting-up of Electric Vehicle manufacturing units in the state through creation of infrastructure facilities, skilled manpower, encouragement of capital investment and technology up-gradation, development of marketing network, development promotion, grants and concessions.

3.1. Vision

To ensure balanced economic development of the state by favoring Electric Vehicle manufacturing sector and to provide maximum benefits to all stakeholders by establishing Jharkhand as an EV hub in India.

3.2. Objectives

The main objectives of this policy are:

a) To make Jharkhand as most preferred destination for electric vehicle manufacturing units in Eastern India

b) Faster adoption of EVs in state with a vision of achieving carbon neutral transport system.

c) To identify and address the key existing infrastructure gaps affecting the growth of Electric Vehicle industry in the State.

d) To create a conducive environment for phase wise shift from Internal Combustion Engines (ICE) to Electric Vehicles (EVs) by 2030.

e) Establishment of projects for the manufacturing of advanced chemistry cell (ACC) batteries in Jharkhand by 2027.

f) To establish center of excellence for EV in partnership with Industry and Academia by 2027.

g) Target of 10% share of Electric Vehicle in overall new vehicle registration in the State by 2027 (All vehicles: 10%, 2 wheelers: 10%, 3 wheelers: 20%, 4 wheelers: 10%) h) Setting up of at least one public charging station in a 3 km x 3 km grid or minimum of 50 charging stations per million population, whichever is higher

i) Setting up of public charging station on highways at 25 km distance (on both sides of all National highways and major State Highways).

j) Target for conversion of 15 years old Government owned/leased vehicles with Electric Vehicle

3.3. Strategy

a) Development of infrastructure facilities

b) Creation of a favorable atmosphere for setting up of electric vehicle manufacturing units

c) Capital investment promotion

d) Promotion of technology up-gradation

e) Financial grants-in-aid and concessions

f) Market development and export promotion

g) Industrial facilitation and single window clearances4 Jharkhand Gazette (Extraordinary), Friday, 7th October, 2022 4. VALIDITY OF THE POLICY

This policy will remain operational till five years from the date of notification of the Gazette.

5. SCOPE AND ELIGIBILITY OF THE POLICY

5.1. Eligible Sector:

This policy covers following electric vehicle manufacturing units to be established in the state of Jharkhand:

a. EV Automobiles*

A. Buses (only Electric Vehicle technology)

B. Four Wheelers {Electric (EV), Plug in Hybrid (PHEV) and Strong Hybrid (SHEV)} C. Three-wheeler (Electric) including Registered E-Rickshaws

D. Two Wheelers (Electric)

* Vehicles as categorized in eligibility list of Scheme for Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) shall be covered under this policy.

b. Tier-I, Tier-II and Tier-III Electric Auto-components manufacturing units of above four automotive.

c. EV Ancillary units

d. EV Battery manufacturers²

e. Infrastructure for EV i.e. Charging Stations, battery swapping stations and others 5.2. Eligible Organizations:

The following manufacturing organizations of eligible sectors given in sub-section 7.1 shall be eligible for benefit under this policy:

a) Proprietorship firm

b) Registered partnership firm

c) Private Limited Company

d) Limited liability registered partnership firm

e) Public Limited Company

f) Government Company

g) State/Central Public Sector Undertaking

h) Joint Venture

6. POLICY IMPLEMENTATION

i. Department of Industries, Government of Jharkhand shall be the nodal agency responsible for implementation of this policy in the State.

ii. Incentives under this policy shall be processed as per the provisions of Jharkhand Industrial Investment Promotion Policy, 2021.

iii. Units applying for incentive under this policy shall apply on the Single Window Clearance (SWC) portal of the Department of Industries, Government of Jharkhand.

iv. Department of Industries shall extend hand-holding support to the Investors setting up EV manufacturing units in land allotment from Jharkhand Industrial Area Development Authority (JIADA), land registration for private land and land use conversion and other applicable clearances/ licenses/ NOCs.

7. FISCAL INCENTIVES

The Fiscal Incentives being offered under this policy would be in addition to the demand incentives available in the FAME India Phase-II scheme of Government of India.

7.1. Fiscal Incentives

All incentives shall be applicable to parties intending to set up or upgrade their facilities for manufacturing of eligible sector as set forth in section 5.1 above:

S.No Incentives Description

1 Comprehensive

Project

Investment

a) MSME units shall be entitled to get CPIS for investments made in fixed capital investment. Subsidy under CPIS for MSME shall be admissible at the rate of 30% of investments made in fixed capital investment.

Subsidy (CPIS)

b) Non MSME Units shall also be entitled to get Comprehensive Project Investment Subsidy (CPIS) for investment made in: • Plant and Machinery • Pollution Control Equipment • Environment friendly alternative power generation

equipment

• Employee Welfare (EPF, ESI, Health Insurance

Scheme)

c) The qualifying amount of investment for subsidy for non MSME units under CPIS will be calculated giving weightage of 50% to investment made in Plant and Machinery, 20% each to investment in pollution control equipment and environment friendly alternative power generation equipment and 10% to investment in employee welfare (EPF, ESI, Health Insurance)

installments with 50% in first year and balance 50% in

third year while for Non-MSME units, CPIS will be

disbursed in three installments with 50% in first year, 25%

in third year and balance 25% in fifth year.

e) SC/ST/Women/Differently abled Entrepreneurs will avail6 Jharkhand Gazette (Extraordinary), Friday, 7th October, 2022 5% additional benefit under CPISi.e., over and above the

maximum limit of admissible subsidy of CPIS as

mentioned in the table drawn above (7.1 S. No.1.C). This

benefit shall be applicable only to residents of Jharkhand.

For the purpose of this clause, those persons will be

eligible for benefit under SC/ST category that are issued

caste / residential certificate to this effect by competent

authority as notified by Government of Jharkhand.

Similarly, those persons will be deemed to be of differently

abled category that are certified by a competent Medical

Board to have Differently abled of more than 40%

f) Industrial units entitled for benefits in the above category

under Government of India Scheme will not be eligible to

get benefits under the same category under this policy.

2 Stamp duty and 100% reimbursement of stamp duty and registration fee Registration fee for land directly purchased from the raiyats / acquired through consent award (lessee of JIADA / industrial parks will not be eligible for this benefits). This facility will be granted only for the first transaction for a particular plot of land

3 Land Cost 50% rebate on prevailing land lease premium on the land allotted by the State Government agencies and land will be provided to units as upfront or in 10 equal installments in five years will be applicable only for those units to whom the land is allotted within a period of two years from the Date of Notification of this policy and commence their production within a period of 15 months from the date of land allotment.

4 Quality

Assistance for obtaining quality certification from B.I.S. and Certification other internationally recognized institutions @ 100% of the expenditure incurred up to maximum of Rs. 10.00 lakh

Units obtaining certification / accreditation under any of the following internationally recognized / accepted standards will be eligible for the benefit

• ISO-9000 Quality Management SystemJharkhand Gazette (Extraordinary), Friday, 7th October, 2022 7 • ISO-14000 Environmental Management System

• BIS certification

• ZED certification

• Green Energy Certificate

• Bureau of Energy Efficiency (BEE) Certificate

• LEED Certification in New and renewable Energy

• Internationally accredited eco-labels OKE-TEX 100

etc.

Any other nationally/ internationally accredited certification that will enable better market positioning

5 Patent

Financial assistance of 50% of the expenditure incurred, up Registration to a maximum of Rs. 10 lakhs, per patent. Out of these a maximum of Rs 4 lakh may be given on expenditure incurred in filing of patent, attorney fees, patent tracking etc. and up to maximum of Rs. 10 lakhs on final acceptance of the patent.

6 Grant for Cluster A grant of 15% of the total grant released by the Development Government of India shall be offered by State Government to Cluster schemes approved by Government of India for the State to SPV/ promoter.

7 Incentive for 100% Electricity duty of New or existing EV industrial units captive power setting up captive power plant shall be reimbursed after plant

payment of electricity duty for a period of five years for self – consumption or captive use (i.e. in respect of power being used by the plant) from the date of its commissioning.

8 Interest Subsidy New MSME units and non MSME EV automobile and EV auto component manufacturing units shall be entitled to interest subsidy for timely payment @ 6% per annum on total loan availed from public financial institutions / Banks for period of five years from the date of Commercial Production subject to total maximum limit of

a. Rs. 15 Lakhs for Micro Enterprises8 Jharkhand Gazette (Extraordinary), Friday, 7th October, 2022

b. Rs. 50 Lakhs for Small Enterprises

c. Rs 1 Crore for Medium Enterprises

d. Rs. 3 Crores for non-MSME Sector units

Units which are classified as Non-performing Asset (NPA) at the time of making the application will not be eligible to avail such incentive.

In addition to the interest subsidy, the guaranteed fee charged under the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme to Micro and Small Enterprises (MSEs) will be reimbursed to the enterprises to improve the CGTMSE coverage for collateral free loans in the state.

9 Anchor Unit

In addition to the incentives above, the Eligible Anchor Units Subsidy

shall receive an additional 5% of the Capital Subsidy shall be provided in addition to the incentive Comprehensive Project Investment Subsidy (CPIS)mentioned in this Policy in clause 7.1 (1). This is applicable to the First 2 Anchor Units in a District. The details of the Anchor Units and the procedure shall be detailed out in the Common Incentive Disbursement Guidelines.

10 Early Bird

For the Units that come up within a period of two years from Subsidy

the Date of Notification of this policy, Additional 5% of capital subsidyshall be provided in addition to the incentive Comprehensive Project Investment Subsidy (CPIS)mentioned in this Policy in clause 7.1 (1). The details of the Early Bird Subsidy and the procedure shall be detailed out in the Common Incentive Disbursement Guidelines.

Note: A unit belonging to SC/ST/Women/Differently abled Entrepreneurs and also fulfilling the pre- requisite criteria of Anchor Unit Subsidy and Early Bird Subsidy will avail a maximum 10% additional benefit under CPIS i.e., over and above the maximum limit of admissible subsidy of CPIS or an amount of INR 3 Crore whichever is lower.

7.2. Other Incentives

7.2.1. Setting up Waste Treatment plant

Non-MSME units will be provided subsidy of 50% on annual interest on loan taken in form of reimbursement to set up Waste Treatment Plant for 5years upto maximum INR 1 crore per unitJharkhand Gazette (Extraordinary), Friday, 7th October, 2022 9 7.3. EV ecosystem development Incentives

7.3.1. Demand side incentives³

The incentives are linked to the vehicle type—two-wheelers, three wheelers, four-wheelers and buses—and to the vehicle use case. Vehicle models approved under FAME II Scheme of Govt of India will be eligible for these incentives and the state incentives will be provided in addition to FAME II incentives.

S. Vehicle Segment Incentive available Number of vehicles to Maximum

No.

be incentivized

incentive per

vehicle

1 e-2W (L1 & L2) INR 5000/kwh 1,00,000 10,000

2 e-3W autos (L5M) INR 5000/kwh 15,000 30,000

3 e-3W goods

INR 5000/kwh 10,000 30,000

carrier (L5N)

4 e-4W cars (M1) INR 5000/kwh 10,000 1,50,000

5 e-4W goods

INR 5000/kwh 10,000 1,00,000

carrier (N1)

6 e-buses* 10% of vehicle** cost 1000 20,00,000

*Incentive shall be available for State Transport Undertaking (STU) buses only. State government shall also consider extending support to STUs for procurement of additional e-buses, if required.

**Ex-factory cost

Note:

• In case, Govt of India makes changes to FAME II incentives, Govt of Jharkhand will review the same and accordingly make changes to the incentives offered by the state.

• Govt. of Jharkhand will separately issue Standard Operating Procedure (SOP) detailing the process to avail the benefit.

7.3.2. Interest Free Loans for State Government Employees:

100% interest free advance/loan on the purchase of first Electric Vehicle (2-wheeler and 4-wheeler) to only Government employees of the State

7.3.3. Preference of EVs for Government Offices Use

All Government Departments / Offices, Public Sector Undertakings will give priority to hire EVs vehicles for their official use and the above demand incentives will be applicable for the private owners to purchase these vehicles. Government Departments /Offices, Public Sector Undertakings will purchase EVs when such purchase is necessary and is allowed.

7.3.4. Road Tax

Buyers of EVs manufactured within and outside the State of Jharkhand and over the period of this policy will be provided following exemptions as per the slabs.

7.3.5. Incentives on extended battery warranty and buyback agreement

i. Applicable only for 2-wheeler and 3-wheeler vehicles

ii. The policy will provide OEMs additional incentives (to be transferred to the customers) for offering a minimum 5-year warranty for batteries

iii. OEMs who offer buyback schemes for vehicles which are up to 5 years old at a value reduced by not more than 7.5% per year of the age will be eligible for additional incentives

iv. An OEM can avail both the incentives simultaneously however, the total incentive amount will be limited to INR 12,000. This will be over and above the incentives mentioned in clause 7.3.1 and based on the net value after considering all the above incentives.

S.No. Vehicle Segment

Incentives

1 Assured Buyback, as described

6% of total vehicle cost capped at INR 10,000/- above

2 Battery warranty of at least 5 years 4% of total vehicle cost capped at INR 6,000/- 7.3.6. Charging Infrastructure Incentives

i. Public and semi-public charging stations (PCS and SPCS) will be eligible incentives as per the below mentioned table.

ii. The charging station shall be eligible for the incentives only after commencement of the operation of the station.

iii. Public and semi-public charging stations availing FAME II charging infrastructure incentive will not be eligible for these incentives.

S.No. Type of

Incentive

Maximum

Maximum

number of

PCS/SPCS

Amount

Incentive available

PCS/SPCS to

per PCS/SPCS

be

Incentivized

1 Slow 60% of the cost* INR 10,000 15,000

2 Moderate/fast 50% of the cost* INR 5,00,000 500

3 Solar based fast# 70% of the cost INR 7,00,000 500

Note: *Cost of charging station only (does not include land and any ancillary cost to set up charging station).

#Generating at least 75% of annual electricity through solar energy.

iv. This policy allows petrol pump to set up charging station subject to charging area qualifying for fire and safety standard norms of relevant authorities under relevant acts/rules.

v. Under this policy, the State Distribution Licensees (DISCOM) shall allow charging of EVs from the existing connection of a consumer at the existing tariff, except from agriculture connection.

vi. The tariff for new third party owned by EV charging infrastructure shall be as per the JSERC tariff order for utilities dated 31.03.2018 and any amendments thereafter.

8. OTHER NON-FISCAL BENEFITS:

i. Urban local bodies shall be encouraged to provide lane and parking preferences to EVs, subject to local traffic conditions.

ii. Developers of new residential projects would be encouraged to provide option of buying EV- ready parking from 2022 onwards

iii. All the future public parking spaces, allotted by bidding process, shall provide free parking to all the EVs.

9. IMPORTANT DEFINITION

9.1. Definition of MSME, Large, Mega and Ultra Mega Projects:

i. Definition of MSME will be as laid out by the Government of India,

ii. Also, definition related to Existing Industrial Unit, New Industrial Unit, Sick Unit, Expansion, Modernization and Diversification will be applicable as per definition provided in Jharkhand Industrial Investment Promotion Policy 2021 (JIIP Policy 2021).

9.2. Definition of Date of Production:

i. Date of production means the date of commercial production of such new unit. In respect of expansion/modernization/diversification, it refers to commercial output from such expansion/modernization/diversification.

ii. Commercial production or commercial output means the factory is in commercial production and the GST sale invoice has been issued to the customer(s). DIC/RD and Director of Industries, Govt. of Jharkhand after verification shall issue date of production certificate to this effect. In case of dispute related DIC/RD, the decision of Directorate of Industries shall be the final and issue related to Directorate of Industries, the decision of Principal Secretary/ Secretary, Dept. of Industries shall be final.

9.3. Definition of PCS and SPCS

i. Public Charging Stations (PCS) consists of charging station, associated electrical infrastructure, space for parking (with clearance), ingress/egress for vehicles and has open (unrestricted) access for the public. Additionally, PCS must not have any usage restriction for any EV user. For instance, PCS usage cannot be restricted by providing services only on a subscription basis.

ii. Semi- public charging stations (SPCS) consists of the charging stations, associated electrical infrastructure, space for parking (with clearance), ingress/egress for vehicles and has restricted access for the public (build in semi-public locations like existing commercial and institutional buildings, including malls, shopping complex, hospitals, cinema halls/multiplexes, office spaces, hotels, restaurants, etc.).

iii. Slow charger includes AC-001 and any charger (AC or DC) that delivers a maximum output power of 3.3 kW per charging point, is compliant to the technical and safety standards as laid down by CEA, and is type tested by an agency/lab accredited by NABL. 1 PCS/ SPCS equivalent is at least 3 charging points of maximum 3.3 kW power output per charging point.

iv. For any other charging station (other than slow) -

a. If the charging station has one charging gun, it will be equivalent to 1 PCS/SPCS b. If the charging station has more than one charging guns, each charging gun will be considered equivalent to 1 PCS/SPCS, provided all the charging guns can charge vehicles simultaneously.

9.4. Other Definitions

i. Electric Vehicle (EV): Electric Vehicle (EV) refers to all automobiles using an electric motor that is driven by batteries, ultra-capacitors or fuel cells. This includes all 2-wheeler, 3-wheeler and 4-wheeler Hybrid Electric Vehicles (HEV), Plug in Electric Vehicles (PHEV), Battery Electric Vehicles (BEV), and Fuel Cell Electric Vehicle (FCEV).

ii. Electric Vehicle Battery: Electric Vehicle Battery refers to all energy storage systems used in the defined EVs above. This includes Lithium-ion batteries, nickel metal hydride batteries, lead acid batteries, ultra-capacitors and even fuel cells (direct methanol, alkaline, phosphoric acid, molten carbonate, solid oxide, Sodium-ion and reversible fuel cells). Batteries permitted under FAME-II guidelines will be considered as eligible Electric Vehicle Battery

iii. Electric Vehicle Manufacturing units (EVMUs): All manufacturing enterprises manufacturing Electric Vehicles will be eligible for incentives and concessions under this policy.

iv. EV Battery Manufacturing or Assembly Units (EBUs): All EV battery or fuel cell manufacturing will be eligible for incentives and concessions under this policy as per the notification under S.O. 2208(E).—Production Linked Incentive (PLI) scheme, 'NATIONAL PROGRAMMEONADVANCED CHEMISTRY CELL (ACC) BATTERY STORAGE' for implementation of giga-scale ACC manufacturing facilities in India.⁴

v. EV Battery Recycling Units (EVBRU): All EV batteries or fuel cell recycling units will be eligible for incentives and concessions under this policy (except lead battery recycling units) Categories of vehicles shall be eligible for demand incentives:

► Buses (Only Electric Vehicle Technology)

► Four Wheelers (Electric (EV), Plug in Hybrid (PHEV) and Strong Hybrid (SHEV)

► Three wheelers (Electric) including registered e rickshaws

► Two-wheeler (Electric)

10. MISCELLANEOUS

i. Notwithstanding anything contained in the foregoing paragraphs of the Jharkhand Electric Vehicle Policy 2022, the State Government by issuance of notification in the official gazette may amend or withdraw any of the provisions and or the schemes mentioned herein above.

ii. The Industrial Units which are getting benefitted under this policy will not be eligible for any other financial incentives or benefits under any other schemes or policy of the Govt. of Jharkhand unless specifically mentioned in this policy but they are eligible get benefit from any policy or scheme of Govt. of India.

11. REVIEW AND MONITORING OF THE POLICY

i. A high-level empowered committee will be formed under the Chairmanship of Chief Secretary to regularly review implementation of all provisions of the policy and achieving the targets, suggest, mid-course corrections etc. Interpretation of provisions of the policy and decision thereon of this committee shall be the final.

ii. Separate operation guidelines for administration of the policy with the approval of high-level inter departmental review committee will be issued for the guidance of the concerned agencies and officers

iii. A working subcommittee meeting under the chairmanship of Director, Industries, Government of Jharkhand will also be constituted to regularly monitor the implementation of the Policy. The committee will ensure that, necessary facilitation is extended to the investors and provide feedback to the High-Level Committee on the progress at regular interval.

12. DISPUTE

In case of any ambiguity in interpretation of the contents of this policy which shall create a dispute in implementation, or If any difficulty arises in giving effect to provisions of the Jharkhand Electric Vehicle Policy 2022, the same shall be referred to the Single Window Clearance Committee and thereon the decision taken shall be final.

By the Order of the Governor of Jharkhand,

Vandana Dadel, Principal Secretary Department of Industry Government of Jharkhand.

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