5 Oct 17

Electric revolution in South-West India

September 13th 2017, Bengaluru (or Bangalore), capital of the Indian State of Karnataka, home to one of the world’s biggest IT hubs. The State Government has just made public a plan to promote EV’s. Karnataka is the first Indian state to issue an electrical vehicle policy that supports India’s objectives to convert all vehicles to electric by 2030.

Economic growth through mobility

The policy, or to name it by its full name, the “Karnataka Electric Vehicles & Electric Storage Policy 2017”, is a comprehensive and ambitious plan to develop Bengaluru as the country’s EV capital. The policy makers in Karnataka have understood that, besides increasing mobility and reducing pollution, the State will benefit from potentially 55.000 new jobs and almost USD 5 billion of investment, obviously from the IT industry and the car makers, but also from peripheral investments, such as mobility platforms.

Innovation stimulated by intelligent policy

In order to reach these ambitious objectives, the State Government has built the policy around 8 pillars.

  1. Dedicated zones will be defined, in which EV’s and lithium-ion batteries will be produced. The zonal approach is supported by incentives for manufacturers to develop more efficient batteries.
  2. The Government will put in place subsidies to multiply the number charging facilities, in both private and public spaces and will make the installation mandatory in high-rises
  3. Plans are put in place to develop a special purpose vehicle. For this objective, the Government counts on the collaboration and involvement of many local agencies, such as the Metropolitan Transport and the electricity supply companies
  4. Electric vehicles will be exempt from motor vehicle taxation, which is especially good news for the locals and the corporate fleets, as the State has one of the highest motor vehicle taxes in India
  5. A new research and innovation centre will be set up by the Government to promote activities around EV development. This centre will work closely with the existing EV industry in Karnataka, represented by companies such as Bosch, Delphi, Mahindra&Mahindra and many others
  6. Grants will be freed up to incentivise the development of new technologies
  7. The EV and battery industry will be receiving more incentives
  8. The government will be developing a tailor-made business strategy to join all of the pillars and make sure the initiative is successful

 In conclusion, this is a good example of how local governments can play an active role in stimulating mobility, innovation, employment and investment through policy-making and connecting industries. 

Authored by: Yves Helven