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PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA

Sub:

Karnataka Clean Mobility Policy 2025-30 – reg.

Read:

1) G.O. No. CI 117 SPI 2017, dated 25.09.2017

2) G.O. No. CI 357 SPI 2020, dated 01.06.2021

*****

PREAMBLE:

Electric vehicles (EVs) are becoming increasingly popular because of important advantages

they offer eco-friendliness from a systemic standpoint; cheaper fuel cost; lower maintenance

expenses etc. Government of India (GoI) has been supporting electric mobility efforts in the Country.

Karnataka, as the pioneering state to introduce a dedicated Electric Vehicle (EV) policy, has

experienced remarkable growth in the EV sector. The State has successfully attracted investments

totaling INR 25,000 crore, spanning the entire value chain, encompassing battery pack and cell

manufacturing, component production, original equipment manufacturers (OEMs), charging and

testing infrastructure and investments in research and development, with an additional planned

investment of INR 15,000 crore as on 31st August 2023.

Karnataka has around 2.5 Lakh EVs registered in the State, securing the state’s rank as the

third highest in the nation. This underscores the state’s determined endeavors to reshape the

mobility landscape. Furthermore, at present Karnataka State is having 5403 EV Charging Stations

installed by GoK and Private agencies.

¨sÁUÀ – 4J

Part – IVA

2025

1946)

BENGALURU, WEDNESDAY, 12, FEBRUARY, 2025 MAGHA, 23, SHAKAVARSHA, 1946)

. 88

No. 88

The State Government had announced Karnataka Electric Vehicle and Energy Storage Policy

on 25.09.2017 and amended on 01.06.2021 for promoting EV adoption in the State. This has validity

for a period of 5 years or till the announcement of the New Policy.

In order to leveraging advantages and opportunities available for sustained development of

this promising segment, a comprehensive Clean Mobility Policy is essential which would enable

growth of the clean mobility sector in the State.

Invest Karnataka-2025: Global Investors Meet is scheduled to be held from 11^th-14^th

February, 2025, which is a prestigious event of the State, wherein, the State Government

has to unveil the Karnataka Clean Mobility Policy 2025-30 to attract new investments.

Hence, Karnataka Clean Mobility Policy 2025-30 will be placed and ratified in the next

Cabinet Meeting.

In view of the above, a decision has been taken by the Government to formulate and

adopt Karnataka Clean Mobility Policy for the period 2025-30. Hence, the following order:

GOVERNMENT ORDER No. CI 117 SPI 2024(e),

BENGALURU, DATED 11.02.2025.

In the circumstances explained in the preamble, Government is pleased to announce

the Karnataka Clean Mobility Policy 2025-30 as detailed in Annexure, enclosed to this

Order, to position Karnataka as the premier destination for clean mobility vehicle

manufacturing by leveraging strategic advantages and nurturing a skilled workforce to

support sustainable growth and create a comprehensive clean mobility vehicle eco-system

in the State.

The Government of Karnataka envisions attracting investments of Rs 50,000 Cr

across the entire clean mobility vehicle value chain, generating approximately 100,000 new

jobs during the Policy Period.

The policy objectives are as follows:

 Making Karnataka #1 in Asia in Future Clean Mobility, fueled by Equitable and

Sustainable Development

 Accelerating Clean Mobility Vehicle Adoption in Karnataka through a Robust

Charging Infrastructure Network or hydrogen stations

 Create a Clean Mobility Vehicle ecosystem that fosters innovation in the State of

Karnataka

Karnataka Clean Mobility Policy covers the following activities or products:

 Clean mobility vehicle and Clean Mobility components:

 Manufacturing/Assembly of Electric Vehicles (fixed battery/ swappable battery),

hydrogen based vehicles, fuel cell based electric vehicles.

 Manufacturing of clean mobility cells, clean mobility battery pack/module manufacturing

and assembly (Li Ion cells, fuel cells, hydrogen cells or any advanced chemistry battery

cells).

 Manufacturing of clean mobility vehicle components

 Lithium ion and fuel cell components

 Manufacturing of Electric Vehicle Charging/Swapping Infrastructure Equipment and

Hydrogen stations

 Re-use and Recycling of batteries through recycling centers set up by clean mobility

battery manufacturers and other players.

 Clean Mobility vehicle testing facility includes testing of battery/cell materials and

components.

The Karnataka Clean Mobility Policy 2025-30 and package of incentives and concessions

shall come into effect from 11.02.2025 and will be valid for a period of 5 years or till a new policy is

announced.

This order is issued with the concurrence of the Finance Department vide Note No.

FD/151/Exp-1/2024, dated 10.02.2025; Transport Department vide Note No. TD/89/TDO/2024,

dated: 30.05.2024; Energy Department vide Note No. ENERGY/107/VSC/2024, dated: 07.05.2024;

Revenue Department vide Note No. RD/19/MNMU/2024, dated: 05.10.2024; Comments of Urban

Development Department in File No. CI/117/SPI/2024 (P6); and approval of the competent authority

in File No. CI/117/SPI/2024.

By Order and in the name of the

Governor of Karnataka,

-Sd/-

(Dr. S. SELVAKUMAR)

Principal Secretary to Government,

Commerce & Industries Department.

Karnataka Clean Mobility Policy 2025-2030

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Annexure to G.O. No. CI 117 SPI 2024, Dated 11.02.2025

Karnataka Clean Mobility Policy

2025-2030

Commerce and Industries Department

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Table of Contents

Market landscape ....................................................................................... 3

1.1

Indian Electric Vehicle Market landscape ................................................................................ 3

1.2

Karnataka Electric Vehicle Market landscape¹ ........................................................................ 4

1.3

Other Emerging Tech Market landscape .................................................................................. 5

Vision & Mission ......................................................................................... 6

Objectives ............................................................................................... 6

Policy Measures ......................................................................................... 7

4.1

Incentives & Concessions ............................................................................................................ 7

4.1.1

Eligibility and Coverage ...................................................................................................... 7

4.1.2

Demand Side Incentives and Concessions ........................................................................ 9

4.1.3

Supply Side Incentives and Concessions ......................................................................... 10

4.2

Establishment of Clean Mobility Clusters ............................................................................... 15

4.3

Development and facilitation of robust network of charging infrastructure/ filling

stations .................................................................................................................................................... 17

4.3.1

Support Measures ............................................................................................................... 17

4.3.2

Incentives for Charging and Hydrogen stations for all Zones. .................................... 19

4.4

Support for creation of common infrastructure and testing facilities ............................. 20

4.5

Support for Research & Skill Development ............................................................................ 20

Technical Committee to define/certify a Clean Mobility Vehicle Enterprise ................. 22

Review, monitoring & course correction mechanism ............................................. 22

Validity of the policy .................................................................................. 23

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1 Market landscape

1.1 Indian Electric Vehicle Market landscape

In an era marked by rapid technological advancements and a growing emphasis on

sustainable development, the global Electric Vehicle (EV) industry has emerged as a

transformative force reshaping the landscape of transportation. As nations around the

world collectively address the challenges posed by climate change, urbanization, and

energy security, the EV industry has garnered unprecedented attention for its potential

to revolutionize mobility. The shift towards electrification stands as a testament to the

industry's remarkable growth trajectory, underscored by a surge in demand, substantial

investments in research and development, and an evolving infrastructure ecosystem.

In India, the momentum of EV adoption is building, requiring investments exceeding

$30 billion by 2030 to meet anticipated demand. With Electric Vehicle penetration

projected to reach approximately 25%-30% for two-wheelers and three-wheelers, 12%-

15% for four-wheelers, and about 6% for buses, the nation is poised for substantial

transformation in its transportation landscape.

Furthermore, the Electric Vehicle sector is witnessing the entry of numerous high-

valuation startups. This dynamic landscape also sees established Original Equipment

Manufacturers (OEMs) channeling investments into manufacturing and making

significant investments in EV startups, bolstering their market positions, and

contributing to the sector's accelerated growth.

The Government of India is driving the Electric Vehicle market through supportive

policy guidelines such as:

 The Production Linked Incentive (PLI) scheme to stimulate the manufacturing of

Electric Vehicles and fuel cell vehicles, backed by an allocation of

approximately INR 26,000 crore.

 The PLI scheme designed to foster the production of Advanced Chemistry Cell

(ACC) batteries, supported by an investment of INR 18,100 crore.

 The FAME II scheme aimed at incentivizing demand for Electric Vehicles and the

creation of charging infrastructure, supported by an outlay of INR 10,000 crore.

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1.2 Karnataka Electric Vehicle Market landscape¹

Karnataka, as the pioneering state to introduce a dedicated Electric Vehicle (EV)

policy, has experienced remarkable growth in the EV sector. The state has successfully

attracted investments totaling INR 25,000 crore, spanning the entire value chain,

encompassing battery pack and cell manufacturing, component production, original

equipment manufacturers (OEMs), charging and testing infrastructure, and investments

in research and development, with an additional planned investment of INR 15,000

crore as on 31^st August 2023.

Karnataka has around 2.5 Lakh EVs registered in the State, securing the state’s rank as

the third highest in the nation. This underscores the state’s determined endeavors to

reshape the mobility landscape. Furthermore, at present Karnataka State is having

5403 EV charging stations installed by GoK and private agencies. Budget 2024-25 has

announced 2500 EVCS under PPP mode and 100 charging stations through ESCOMs fund

at a cost of Rs. 35 crore to be taken up.

Karnataka stands poised to lead the EV revolution, equipped with a thriving automotive

sector complemented by a substantial pool of skilled technical professionals, robust

research and development capabilities, and extensive manufacturing expertise.

In recent years, Karnataka has initiated numerous programs and courses across ITIs,

Polytechnics, and colleges. A notable partnership between the Government of

Karnataka and Tata Technologies Ltd seeks to transform 150 ITIs into technology hubs,

offering training to approximately 20,000 individuals annually through long-term and 1

lakh professionals annually through short-term courses. These comprehensive offerings

encompass various aspects of EV technology, including designing, battery management,

technical aspects, electrical and mechanical engineering, and testing protocols.

Additionally, over 20 Polytechnics provide diploma programs in Electrical Engineering

and Electrical Vehicle technology. Leading educational institutions have also

collaborated with industry leaders to provide specialized Electric Vehicle Electives,

further bolstering the state's commitment to nurturing a skilled workforce for the EV

sector.

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1.3 Other Emerging Tech Market landscape

The advancement of sustainable mobility solutions is crucially dependent on embracing

cleaner and more efficient technologies, with hydrogen fuel cells emerging as pivotal

in shaping the future of transportation. Hydrogen, renowned for its role in significantly

reducing carbon emissions, is becoming a cornerstone in the quest for a greener

planet. The hydrogen economy is projected to expand significantly, with its market

value expected to reach between $100 billion and $200 billion by 2040, depending on

the scale of global decarbonization efforts.

The innovation within the hydrogen fuel cell domain is driven by five key technologies:

Alkaline Fuel Cells (AFC), Molten Carbonate Fuel Cells (MCFC), Solid Oxide Fuel Cells

(SOFC), Phosphoric Acid Fuel Cells (PAFC), and Proton Exchange Membrane Fuel Cells

(PEMFC). These technologies are lauded for their environmental benefits, including

minimal greenhouse gas emissions, reduced particulate matter, and low noise

pollution. Furthermore, the ability to domestically produce fuel cells diminishes

dependence on oil imports, enhancing energy security due to their production

feasibility anywhere with access to water and electricity.

The fuel cell market is poised for substantial growth, with an annual growth rate of

50% forecasted until 2030, largely propelled by transportation applications. The

anticipated global capacity of fuel cell market is forecasted to be 120 GW by 2030.

Notably, Proton Exchange Membrane Fuel Cell (PEMFC) technology dominates the

sector, capturing more than 75% of sales, primarily due to its suitability for

transportation.

Fuel cell technology offers promising benefits, including quick refueling times of 5-10

minutes, a driving range of approximately 500 kilometers, and zero emissions. The

next decade is expected to witness groundbreaking advancements in this technology,

potentially reducing manufacturing costs by 40-60% by 2030.

Currently, numerous leading Original Equipment Manufacturers (OEMs) are working on

fuel cell technology. Examples include a multinational automobile manufacturer that

has developed a Fuel Cell Vehicle with over 500km autonomy and a refueling time of

just 5 minutes, and another manufacturer focusing on Hydrogen trucks equipped with

190kW fuel cells and high-pressure tanks. Moreover, several companies are pioneering

solutions for material handling forklifts, hydrogen-fueled passenger trains, and inland

cargo vessels, with other applications being in nascent stages of development.

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In summary, the shift towards more sustainable mobility technologies signifies a

transformative era both globally and in India. Fuel cells and hydrogen are not just

alternatives but are quickly becoming fundamental to the sustainable transportation

landscape. With strategic investments and initiatives, India is poised not only to follow

global trends but to lead and redefine the narrative in sustainable mobility.

2 Vision & Mission

To position Karnataka as the premier destination for Clean Mobility Vehicle

manufacturing, spanning the entire value chain from battery and cell manufacturing,

component production, original equipment manufacturers, charging, hydrogen &testing

infrastructure, to research and development. We aim to achieve this by leveraging

strategic advantages, collaborating with the industry, and nurturing a skilled workforce

to support sustainable growth and create a comprehensive Clean Mobility Vehicle

ecosystem in the state.

3 Objectives

The Government of Karnataka envisions attracting investments of Rs 50,000 Cr across

the entire Clean mobility vehicle value chain, generating approximately 100,000 new

jobs during the Policy Period, and establishing a comprehensive and supportive Clean

Mobility vehicle ecosystem in the State.

The policy objectives are as follows:

3.1 Making Karnataka #1 in Asia in Future Clean Mobility, fueled by Equitable and

Sustainable Development

 Develop sizable clusters at the right price point to attract manufacturing

units.

 Provide initial incentives to stimulate interest from players across the

complete Clean Mobility Vehicle value chain.

3.2 Accelerating Clean Mobility Vehicle Adoption in Karnataka through a Robust

Charging Infrastructure Network or hydrogen stations

 Accelerate identification of strategically located land parcels aligned with

power infrastructure and leverage OMCs (Oil Marketing Companies) for

rapid development of stations.

 Offer favorable power tariffs to charging stations.

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3.3 Create a Clean Mobility Vehicle ecosystem that fosters innovation in the State of

Karnataka

 Encourage

the

establishment

common

facilities

and

testing

infrastructure within the clusters.

 Foster collaborative linkages between industry, academia, and start ups

to create clean mobility specific curriculum.

 Promote Research & Development, spurring innovations in future mobility

 Encourage the recycling industry, fostering a circular economy within the

State.

This policy framework seeks to transform Karnataka into a pioneering force in the field

of clean mobility, embracing sustainable practices and equitable growth while

fostering innovation and creating a robust ecosystem for clean mobility vehicles

throughout the State.

4 Policy Measures

Five strategic policy measures have been outlined below to foster comprehensive

development of the Clean Mobility Vehicle ecosystem within the State of Karnataka

 Incentives and Concessions

 Establishment of Clean Mobility clusters

 Development and facilitation of robust network of charging infrastructure/

hydrogen stations

 Support for creation of common infrastructure and testing facilities

 Support for Research, Innovation and Skill Development

4.1 Incentives & Concessions

Given the sector is at the cusp of revolution, the Government of Karnataka will

facilitate and support the manufacturing of Clean Mobility Vehicles, components like

battery pack, cells and cell components, motors, hydrogen tanks, fuel stack, power

electronics and EV electrical, charging infrastructure, hydrogen stations, testing

infrastructure, recycling of batteries and R&D for the sector.

4.1.1

Eligibility and Coverage

Following activities/products for which investments are made during the policy period

as per Section 7 would be eligible for availing incentives under this policy.

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1. Clean mobility vehicle and Clean Mobility components



Manufacturing/Assembly

Electric

Vehicles

(fixed

battery/swappable

battery), hydrogen based vehicles, fuel cell based electric vehicles.

Note: In the policy document, Clean Mobility Vehicle to refer to all the above

technologies, unless specified otherwise



Manufacturing of clean mobility cells, clean mobility battery pack/module

manufacturing and assembly (Li Ion cells, fuel cells, hydrogen cells or any

advanced chemistry battery cells).



Manufacturing of clean mobility vehicle components as follows:



Electric motor & drive including Electric motors, Electric driveline systems,

Integrated power box unit, Electric Axles/Half Shafts, and power transfer

units



Motor Controllers/Power Control Units, Inverters/converters, Battery pack

Controllers and on-board chargers



AC/DC charging inlet



Battery system including Battery Cells/Pack, Battery Management System,

Thermal management system



Auxiliary Battery System



EV specific electrical infrastructure including high voltage wiring and

components



Electric compressor

2. Li-ion & fuel cell components



Cathode Active Materials using advanced technologies like NMC, LFP etc.



Anode Materials using Graphite, Copper, Silicon, Carbon black etc.



Separator (Polyethylene & Polypropylene)



Carbonate Solvents like Lithium hexafluorophosphate, Ethylene carbonate,

Diethyl carbonate etc.



Processing of minerals used for Li-ion processing only, e.g Li, Ni, Co, Mn



Consumables like



Packaging foil-Pouches/Cans/Cases



Steel casing



Cylindrical – Metal housing, Insulation Ring, heat Shrinkable PVC, Foam



Prismatic – Metal Housing, Insulation Foil

3. Manufacturing of Electric Vehicle Charging/Swapping Infrastructure Equipment

and Hydrogen stations

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4. Re-use and Recycling of batteries through recycling centers set up by clean

mobility battery manufacturers and other players.

5. Clean Mobility vehicle testing facility includes testing of battery/cell materials

and components.

Note: Components manufacturers shall supply minimum 50% of their products

to EV and clean mobility OEM (original equipment manufacturer).

4.1.2

Demand Side Incentives and Concessions

4.1.2.1

Road tax and registration charges

To encourage the widespread adoption of electric vehicles, Government of Karnataka

exempts from payment of taxes on all categories of electric vehicles both transport

and non-transport vehicles including e-rickshaws and e-carts, except for motor cars,

jeeps, omni buses and private service vehicles run on electricity having cost of the

vehicle which exceeds Rs. 25 lakhs under Karnataka Motor Vehicles Taxation Act, 1957

vide Notification No. TD/07/TDR/2024, dated 30.03.2024.

4.1.2.2

Other measures to promote Clean Mobility vehicle adoption

In order to promote adoptability of Clean Mobility vehicle in private transport the

following measures will be taken in line with the announcements of Government of

India.

 To support last mile connectivity, e-rickshaws/EV auto rickshaws will be

encouraged and supported by the Transport and Urban Development

Departments including BMRCL, KRIDE, BMTC, KSRTC etc., while keeping in mind

the provisions under the purview of the Motor Vehicle Act.

 Existing two wheelers, three wheelers and four wheelers, passenger, and cargo

vehicles, will be encouraged for retrofitting provided the same are factory

fitted, approved by Government in terms of safety, and meet all the regulatory

compliances along with being FAME 2 compliant or any other notified

rules/regulations of the Government of India made from time to time.

Transport Department will notify guidelines / online procedure.

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 Encourage a focused approach by Directorate of Municipal Administration for

clean mobility in Tier II and Tier III cities for retrofitting of existing two

wheelers, three wheelers and charging infrastructure.

 City Corporations, City Municipalties, Town Municipal Councils and Town /

Pattana Panchayats in Karnataka will be encouraged to use clean mobility

vehicles for solid waste management.

 To encourage adoption of clean mobility vehicles in short route public transport,

a flexible stage carrier permit policy for clean mobility buses allowing

multiple/variable routes outside the BMTC Area will be examined.

 E-commerce and delivery companies across the State will be encouraged to

replace their fleet of two wheelers/three wheelers to clean mobility vehicles in

a phased manner with an intention to achieve 100% clean mobility by 2030.

 Encouraging private companies and schools through any mechanisms to convert

their fleet of school buses and company cars/vans etc., into electric/hydrogen.

4.1.3

Supply Side Incentives and Concessions

4.1.3.1

Incentives and Concessions for Micro, Small and Medium Enterprises

Support

Details

Capital

Subsidy for

Micro

Industries

General

Special Category

(SC/ST, Women, Minorities, Physically

Challenged and Ex-Servicemen)

Zone 1: 30% of VFA (max of INR 30 Lakh)

Zone 2: 25% of VFA (max of INR 25 Lakh)

Zone 3: 20% of VFA (max of INR 10 Lakh)

VFA – Value of Fixed Assets

Zone 1: 35% of VFA (max of INR 35 Lakh)

Zone 2: 30% of VFA (max of INR 30 Lakh)

Zone 3: 25% of VFA (max of INR 15 Lakh)

VFA – Value of Fixed Assets

Capital

Subsidy for

Small

Industries

Zone 1: 25% of VFA (max of INR 200 Lakh)

Zone 2: 20% of VFA (max of INR 150 Lakh)

Zone 3: 20% of VFA (max of INR 50 Lakh)

VFA – Value of Fixed Assets

Zone 1: 30% of VFA (max of INR 225 Lakh)

Zone 2: 25% of VFA (max of INR 175 Lakh)

Zone 3: 25% of VFA (max of INR 75 Lakh)

VFA – Value of Fixed Assets

Note on

Subsidy for

Micro and

Small

Enterprises

The capital subsidy will be disbursed in 2 installments.

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Support

Details

Capital Subsidy

Capital Subsidy for

Medium Industries

Capital Subsidy after commercial production disbursed in 4 annual and

equal disbursements

Zone 1: 25% of VFA (max of INR 10 Cr.)

Zone 2: 20% of VFA (max of INR 8 Cr.)

Zone 3: 20% of VFA (max of INR 4 Cr.)

VFA – Value of Fixed Assets

Type of Support

General Category

Special Category

(SC/ST, Women, Minorities, Physically

Challenged and Ex-Servicemen

Entrepreneurs)

Exemption from

Stamp Duty for

MSMEs

Exemption from stamp duty and concessional registration charges:

Stamp duty to be paid in respect of loan agreements, credit deeds, mortgage

and hypothecation deeds executed for availing loans from State Financial

Corporation, National Level Financial Institutions, Commercial Banks, Regional

Rural Banks, Co-operative Banks, Khadi and Village Industries Board, Khadi

and Village Industries Commission, Karnataka State SC/ST Development

Corporation, Karnataka State Minority Development Corporation and other

institutions which may be notified by the Government from time to time for

the initial period of five years only and for lease deeds, lease-cum-sale,

sublease, transfer of lease hold rights and absolute sale deeds executed by

industrial enterprises in respect of industrial plots, sheds, industrial

tenements, flatted factories by Karnataka Industrial Areas Development

Board, Karnataka State Small scale Industries Development Corporation,

KEONICS, Industrial Co-operatives, approved private industrial estates/parks,

SPVs formed by GoK/GoI and other approved industrial parks shall be

exempted as below:

Zone1:100%

Zone2:100%

Zone3: 100%

Zone1:100%

Zone2:100%

Zone3: 100%

Concessional

Registration

Charges for

MSMEs

All Zones:INR1/-perINR1,000/-

AllZones:INR1/-perINR1,000/-

1. The exemption of stamp duty and concessional registration charges

are also applicable to lands purchased under Section 109 of the KLR

Act, 1961.

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2. The exemption of stamp duty and concessional registration charges

are also available for registration of ﬁnal sale deed in respect of

lands, sheds, plots, industrial tenements after the expiry of the lease

period at the rate as speciﬁed in the Industrial Policy which was in

vogue at the time of execution of lease-cum-sale deed.

Note: 100% reimbursement of stamp duty shall be provided in Lieu of 100%

exemption of Stamp Duty till such time an amendment is made in the

Karnataka stamp act. However, Enterprises can avail stamp duty

exemption and concessional registration charges as per Karnataka Electric

Vehicle and Energy Storage Policy 2017 / Karnataka Industrial Policy 2020-

25 till such time an amendment is made to the Karnataka Stamp Act in all

Zones.

Reimbursement

of Land

Conversion Fee

for MSMEs

Zone1:100%

Zone2:100%

Zone3: 100%

Zone1:100%

Zone2:100%

Zone3: 100%

Exemption/

Reimbursement

of Tax on

Electricity Tariff

or MSMEs

Zone 1: 100% for 7 years

Zone 2: 100% for 6 years

Zone 3: 100% for 3 years

Zone 1: 100% for 8 years

Zone 2: 100% for 7 years

Zone 3: 100% for 4 years

Sustainability and Responsible Industrialization by MSMEs

Type of Support

General Category

Special Category

(SC/ST, Women, Minorities, Physically

Challenged & Ex-Servicemen

Entrepreneurs)

Subsidy for

setting up ETP

For All Zones

50% of cost of ETP (max.INR 50 Lakh)

For All Zones

75% of cost of ETP (max INR 60 Lakh)

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4.1.3.2

Incentives and Concessions for Large/Mega/Ultra Mega Enterprises

The details of standard package of incentives and concessions offered for establishment of

clean mobility Industries under Large, Mega, Ultra Mega category of enterprises are as under:

S.No

Incentive Head

Quantum

Capital Investment Subsidy

Zone 1 – 25% of VFA

Zone 2 – 20% of VFA

Zone 3 – 20% of VFA

VFA-Value of Fixed Assets that includes

land, Building, plant and, machinery

and other assets directly used in

production activity.

Land will include only districts other

than Bengaluru Urban and Bengaluru

Rural up to an extent of 50 acres.

The disbursement of the incentives will

commence

after

the

start

commercial production and will be

disbursed in 5 equal disbursements.

Exemption/Reimbursement

of stamp duty

100%

Concessional

Registration

Charges

INR 1/- per INR 1,000/-

Reimbursement

land

conversion fee

100%

Subsidy

for

setting

Effluent

Treatment

Plant

(ETP)

50% of the cost of Effluent Treatment

Plants (ETPs), subject to a ceiling of

INR 250 lakh

Capital Investment Subsidy

New/Expansion/Modernization/Diversification projects in manufacturing as defined in

section 4.1.1 shall be eligible for a capital subsidy of 20-25 % of investment in Value of

Fixed Assets, based on the zone, to be disbursed over 5 equal annual payments subject

to subsidy on land applicable for maximum of 50 acres.

Zone

% Capital Subsidy

25% of VFA

20% of VFA

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Exemption of Stamp Duty

100 % Stamp duty to be paid in respect of (i) loan agreements, credit deeds, mortgage

and hypothecation deeds executed for availing loans from State Government including

VAT/SGST loan from Department and/or State Financial Corporation, Industrial

Investment

Development

Corporation,

National

Level

Financial

Institutions,

Commercial Banks, RRBs, Co-operative Banks, and other institutions which may be

notified by the Government from time to time only and (ii) for lease deeds, lease-cum-

sale, sub-lease, transfer of lease hold rights and absolute sale deeds executed in

respect of industrial plots, sheds, industrial tenements, by KIADB, KEONICS, KSIIDC,

Industrial Co-operatives and approved private industrial estates/parks shall be

exempted.

Note:

1. The exemption of stamp duty and concessional registration charges are also applicable

to lands purchased under Section 109 of the KLR Act, 1961.

2. The exemption of stamp duty and concessional registration charges are also available

for registration of ﬁnal sale deed in respect of lands, sheds, plots, industrial tenements

after the expiry of the lease period at the rate as speciﬁed in the Industrial Policy

which was in vogue at the time of execution of lease-cum-sale deed.

3. 100% reimbursement of stamp duty shall be provided in Lieu of 100% exemption of

Stamp Duty till such time an amendment is made in the Karnataka Stamp Act. However,

Enterprises can avail stamp duty exemption and concessional registration charges as per

Karnataka Electric Vehicle and Energy Storage Policy 2017 / Karnataka Industrial Policy

2020-25 till such time an amendment is made to the Karnataka Stamp Act in all Zones.

Concessional Registration Charges

For all loan documents, lease deeds and sale deeds as specified in exemption of stamp

duty above, the registration charges shall be at a concessional rate of Rs. 1.00 per

Rs.1,000.

Reimbursement of Land Conversion fee

100% of the land conversion fee for converting the land from agriculture use to

industrial use will be reimbursed.

Subsidy for setting up Effluent Treatment Plant

One-time capital subsidy up to 50% of the cost of Effluent Treatment Plants (ETPs),

subject to a ceiling of Rs. 250.00 lakhs.

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4.2 Establishment of Clean Mobility Clusters

The importance of establishing Clean Mobility clusters is underscored by their role in

promoting the comprehensive development of the Clean Mobility Vehicle ecosystem.

Concentrating all elements of the Clean Mobility Vehicle value chain, including OEMs

and suppliers, within a single geographic location is essential. This approach serves to

expedite research, innovation, and development, while also optimizing supply chain

operations and fostering collaboration.

Thus, the state Government is dedicated to promoting the formation of Clean Mobility

clusters through PPP and aim to stimulate progress in Clean Mobility Vehicle

technology, encourage economic advancement, and contribute to a more sustainable

future in transportation.

The identification of Clean Mobility clusters for establishing the entire value chain are

based on three key parameters:

Sl.No

Parameter

Description

Land Availability

Size

Price

Acquisition Status

Sufficiently large parcels to ensure Clean

Mobility Vehicle ecosystem development

Competitive prices to minimize upfront

capital burden on investors

Acquired land are in advanced stages of

acquisition that is free of any litigation

Distance

from

major

city/airport

Proximity preferred for talent retention

Distance

from

auto

cluster

Supply chain synergies to be drawn from clusters

The upcoming clusters are as follows:

1. Gauribidanur, Chikkaballapur – This cluster encompasses ~825 acre of acquired

land. It is situated 70 kilometers away from Bengaluru and 90 kilometers from

Hoskote, a prominent auto cluster housing renowned manufacturers such as

Honda and Volvo.

2. Chikkamalligewada, Dharwad- The second cluster spans around 1000 acres of

land. It is conveniently positioned 30 kilometers from Hubballi Airport and 26

kilometers from the Hubli-Dharwad cluster.

3. Harohalli, Ramanagara – The third cluster spans around 700 acres of land. It is

40 kilometers from Bengaluru and ~20 kilometers from the Bidadi auto cluster

housing Toyota.

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The Clean Mobility clusters aim to provide following components to ensure maximum

benefit to the investors:

 Ready to occupy land parcels

 Ready built factory/sheds

 Plug & Play incubation facility

 Testing labs

 Proving Grounds

 Homologation facility

Within each Clean Mobility cluster, prospective stakeholders will find a seamless

transition from vision to reality.

4.2.1 Ready to occupy land parcels and ready built factory/sheds

The ready-to-occupy land parcels would be strategically positioned to accommodate

various manufacturing units and facilities. The pre-built factory/sheds would provide a

head start to manufacturing operations, reducing initial setup time and costs.

4.2.2 Plug & Play incubation facility

The plug-and-play incubation facility would serve as an innovation hub, offering a

conducive environment for startups and emerging players to develop and refine their

vehicle-related projects. These facilities would be equipped with essential

infrastructure and services, ensuring that innovators can focus on their work without

logistical hindrances.

4.2.3 Testing labs and Proving Grounds

Indoor testing laboratories would be designed to facilitate research, development, and

quality control processes, fostering precision and efficiency in Clean Mobility Vehicle

manufacturing. The proving grounds and testing tracks would offer a real-world

simulation environment for rigorous testing and validation of Clean Mobility Vehicle

prototypes and components.

4.2.4 Homologation Facility

The dedicated homologation facility within the state in one or more of the Clean

Mobility Vehicle clusters would ensure that the manufactured Clean Mobility Vehicles

meet stringent regulatory standards and quality benchmarks. This facility would aim to

streamline the certification process, minimizing delays and enhancing the speed-to-

market for Clean Mobility Vehicle manufacturers.

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These comprehensive offerings within each Clean Mobility cluster would not only

provide a strong foundation for manufacturing but would also nurture a collaborative

atmosphere that encourages knowledge sharing, innovation, and cross-sector

partnerships.

The vision is to create an environment where every facet of the Clean Mobility Vehicle

ecosystem is seamlessly integrated, leading to accelerated growth, technological

excellence, and sustainable progress in the field of electric mobility.

4.3

Development and facilitation of robust network of charging infrastructure/

filling stations

A comprehensive charging infrastructure/filling station is the cornerstone of the Clean

Mobility ecosystem, vital for integrating clean mobility seamlessly into daily life. It not

only boosts Clean Mobility Vehicle adoption by alleviating range concerns but also

attracts investments, spurs job creation, and showcases our commitment to

sustainability.

BESCOM is the State nodal agency for setting up of EV charging stations. Karnataka

ranks first in the country in installing EV charging and total charging stations in the

State are 5,059. BESCOM has envisioned ‘one state one app’ for EV charging named

“BESCOM EV Mitra.”

We aim to push this initial impetus further through providing the right platform for the

development of public and private charging infrastructure and hydrogen stations in the

State.

4.3.1

Support Measures

To support the charging infrastructure and hydrogen stations, following measures

would be taken:

 Government of Karnataka will identify potential places and provide land

belonging to Government/Government agencies, wherever available, on long

lease basis for setting up of EV fast charging stations, battery swapping

infrastructure and hydrogen stations by following a transparent bidding process.

 The land will be identified in line with power infrastructure and at strategic

locations to promote faster clean mobility vehicle adoption.

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 The ESCOMs will endeavor to supply power to EV charging stations on priority.

However, to speed up the process of planning and execution, the Commerce and

Industries Department, GoK to identify and assess the power requirement in

areas for clean mobility clusters/manufacturing units and inform to Energy

Department.

 Government of Karnataka will continue providing special tariff for EV charging

stations/ swapping stations.

 State nodal agency BESCOM will provide a single window clearance system to

streamline and give necessary permissions in a given time frame for setting up

of charging infrastructure.

 BESCOM, the State nodal agency, will also serve as an EV Accelerator Cell, for

development of e-mobility ecosystem in the state and act as a single window

entity for all assignments related to development of e-mobility ecosystem in the

state.

 To facilitate clean mobility on highways between prominent cities with heavy

density of vehicles such as the Bengaluru-Pune highway, Bengaluru-Mysuru

highway and others, fast charging station/battery swapping infrastructure will

be provided at every 50 kilometers.

 BESCOM in coordination with apartment associations will provide charging

station/swapping stations facilitating adoption of EVs.

 BMRCL/BMTC/KSRTC/BBMP will provide charging stations/swapping stations for

two wheelers at their parking area to encourage clean mobility for last mile

commute.

 Charging infrastructure for personal transport vehicles of Government

employees would be made available at covered parking areas in all Government

buildings across the State.

 Encourage lease/or pay-per-use/battery as a service business models with

battery-swapping station network, integrated payment and tracking system by

government entities/private players.

 Apportion some percentage of on-street parking and off-street parking to clean

fuel vehicles in any future parking policies made for other cities in Karnataka by

DULT.

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4.3.2

Incentives for Charging and Hydrogen stations for all Zones

There are 3 types of charging stations for electric vehicles:

 Fast charging

 Slow charging

 Battery switching/swapping

For hydrogen vehicles, there are hydrogen stations.

4.3.2.1

Fast charging stations for all Zones.

All fast charging stations for 2W, 3W, cars and buses will be offered the following

incentives:

Vehicle Type

Incentive

Number of Charging

Stations to be incentivized

2W, 3W, cars and buses

Capital Subsidy of 25%; up to

Rs. 10,00,000 per station

500

4.3.2.2

Slow charging stations

No incentives for slow charging station.

4.3.2.3

Battery switching/swapping

All battery switching/swapping stations for 2W, 3W, cars and buses will be offered the

following incentives for all zones:

Vehicle Type

Incentive

Number of battery

switching/swapping

Stations to be incentivized

2W, 3W

Capital Subsidy of 25%; up to

Rs. 3,00,000 per station

500

Cars

Capital Subsidy of 25%; up to

Rs. 5,00,000 per station

200

Buses

Capital Subsidy of 25%; up to

Rs. 10,00,000 per station

200

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4.3.2.4

Hydrogen Stations

All hydrogen stations will be offered the following incentives for all zones:

Vehicle Type

Incentive

Number of battery

switching/swapping

Stations to be incentivized

All

Capital Subsidy of 25%; up to

Rs. 1Cr per station

4.4 Support for creation of common infrastructure and testing facilities

A shared Clean Mobility vehicle testing and certification facility along with testing

facilities with a focus on material, cell, and battery testing can significantly contribute

to the development, integration, calibration, evaluation, and certification of various

clean mobility vehicle components, including power trains and energy storage systems.

This Clean Mobility Vehicle testing facility offers numerous benefits to the Clean

Mobility Vehicle ecosystem, catering to a wide range of beneficiaries, from startups in

the clean mobility sector to manufacturers of Clean Mobility vehicles, motors,

hydrogen tanks, battery packs, hydrogen stations, and charging equipment. The

advantages include:

 Cost reduction in testing and final product manufacturing

 Decreased waiting time for product testing

 Support for evaluating design functionality, product development, and analysis

of field failures

 Ensuring compliance with safety and regulatory standards outlined in the Central

Motor Vehicle Rules

The Government of Karnataka is actively planning to establish testing laboratories,

proving grounds, and a homologation facility within the state, either through funding

from the Central Government under the NATRIP (National Automotive Testing and R&D

Infrastructure Project) scheme or through investments from private entities through

PPP.

4.5

Support for Research & Skill Development

Karnataka is well poised to lead the Clean Mobility Vehicle revolution, boasting a

thriving automotive sector bolstered by a substantial pool of technical professionals,

robust R&D capabilities, and extensive manufacturing expertise. To solidify its position

as a Clean Mobility Vehicle industry hub, the state aims to employ specialized full-time

professionals. This specialized workforce demands skills in areas such as Material

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Sciences, Electrochemistry, HV Electrical/Power Electronics, Software Development,

Thermal Management, Mechanics/Structural Design, among others.

Technology in Advanced chemistry batteries are evolving at a faster pace with a view

to have batteries with high energy density, long cycle life, high recyclability and safety

credentials with low upfront cost. To encourage research and development, in these

areas, Government of Karnataka will support enterprises achieving these world class

bench marks by reimbursing 30 percent of the R& D cost incurred by the first such

enterprise operating in the state, subject to a maximum of Rs 1.00 crore during the

policy period. The modalities and other eligibility criterion etc., will be decided by the

technical committee.

In recent years, Karnataka has initiated several programs and courses across ITIs,

Polytechnics, and colleges. Notable among these is a partnership between the

Government of Karnataka and Tata Technologies Ltd, offering long-term and short-

term courses. These offerings encompass EV designing, battery management, EV

technical, electrical, mechanical, and testing aspects. Furthermore, more than 20

Polytechnics offer diplomas in Electrical Engineering and Electrical Vehicle technology.

Leading colleges have also collaborated with industry giants to provide Electric Vehicle

Electives.

To capitalize on Karnataka's robust academic ecosystem and its collaboration with

prominent auto companies, the Government of Karnataka will undertake the following

actions:

4.5.1 Enhance ITI adoption through industry collaboration, increasing clean

mobility curriculum coverage in ITIs located near auto/clean mobility

clusters, and strengthening Industry-ITI partnerships. Benefits include:

 About 40% reduction in employee training costs.

 Time savings of 2-4 months in training.

 Creation of a readily available talent pool for new mobility skills.

4.5.2 Foster collaboration among industry leaders, startups, local and international

universities to design clean mobility-focused curricula in software

development, electrochemistry, thermal management, mechanics/structural

design, and power electronics. This collaboration will also facilitate talent

absorption through internships and placements.

4.5.3 Additionally, to ensure global knowledge transfer in clean mobility, the

Government will encourage partnerships with renowned international

universities offering courses related to clean mobility, such as Stanford

University, Delft University of Technology, and Oxford Brooks University.

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4.5.4 Start ups will be encouraged to develop business models focused on clean

mobility vehicles.

4.5.5 A venture capital fund will be set up for research in clean mobility,

advanced chemistry batteries, battery management systems etc.

Investment Facilitation

Karnataka Udyoga Mitra will facilitate, speed-track and enable a combined online

application in order to get the clearances from environmental, labour and other line

departments.

5 Technical Committee to define/certify a Clean Mobility Vehicle Enterprise

A Technical Committee will be constituted under the Chairmanship of a Sector expert

along with a maximum of 4 other members with Additional Director (P&P), Department

of Industries & Commerce as Member Secretary with a mandate to define/certify

activities / components / products that fall outside the scope of the section 4.1.1 of

the policy. Such activities/products, which seek incentives and concessions under the

Karnataka Clean Mobility policy, will be under the purview of this committee for

assessment and validation.

Activities / components / products covered under section 4.1.1 of the policy will be

automatically eligible to avail incentives and concessions without coming before the

Technical Committee for certification.

6 Review, monitoring & course correction mechanism

A State Level co-ordination Committee will be constituted under the Chairmanship of

Additional Chief Secretary/ Principal Secretary of Commerce and Industries

Department 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 decisions thereon of this committee shall be final.

Separate operational guidelines for administration of the policy with the approval of

the State Level Co-ordination Committee will be issued for the guidance of the

concerned agencies and officers.

A Working Sub-Committee under the Chairmanship of Commissioner, Industries &

Commerce will also be constituted to monitor the implementation of the Policy. This

Committee will ensure that, necessary facilitation is extended to investors and provide

feedback to the State Level co-ordination Committee on the progress at regular

intervals

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7 Validity of the policy

This policy shall be valid for a period of five years from the date of issue of

Government Order or till a new policy is introduced by Government of Karnataka.

In the event that a project is sanctioned within the stipulated policy duration, and if

the execution of one or multiple phases transpires beyond the policy period, all

corresponding incentives including capital subsidies, etc., will remain applicable in

accordance with the prevailing policy in effect during the project's approval.

Furthermore, investors shall be given the choice to transition to the updated policy

framework should they opt to do so.

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Appendix 1

Definitions and Terms and Conditions for Sanction of Incentives and Concessions

Under the Karnataka Clean Mobility Policy

1. As per the MSMED Act, 2006, MSMEs have been defined as follows:



Micro Enterprises- Investment in Plant and Machinery or Equipment does not exceed INR

1 crore and turnover does not exceed INR 5 crore.



Small Enterprises- Investment in Plant and Machinery or Equipment does not exceed INR

10 crore and turnover does not exceed INR 50 crore.



Medium Enterprises – Investment in Plant and Machinery or Equipment does not exceed

INR 50 crore and turnover does not exceed INR 250 crore.

For the calculation purpose of incentives for MSMEs, the following definitions will be used

irrespective of the definitions under the MSMED Act.