The electric vehicle industry in Karnataka is in the nascent stage. In order to give fillip to the electric vehicle sector in all the regions, the entire state has been classified as a single zone, and incentives and concessions proposed below will be applicable equally in all parts of the state.
| Investment promotion subsidy | |
|---|---|
| Micro Enterprises | 25% of the Value of Fixed Assets (VFA) (max. INR 15 Lakh) |
| Small Enterprises | 20% of the Value of Fixed Assets (VFA) (max. INR 40 Lakh) |
| Medium Enterprises | INR 50 Lakh |
| Large, Mega, Ultra Mega and Super Mega Enterprises | N.A. |
| Exemption of stamp duty | |
| Interest free loan on Net SGST | Yes (For Large, Mega, Ultra Mega and Super Mega Enterprises) |
| Concessional registration charges | |
| Reimbursement of land conversion fee | |
| Subsidy for setting up effluent treatment plant (ETP) | |
| Exemption of tax from electricity tariff | Yes (For Micro, Small and Medium Enterprises) |
| Investment promotion subsidy | |
|---|---|
| Micro Enterprises | 25% of the Value of Fixed Assets (VFA) (max. INR 15 Lakh) |
| Small Enterprises | 20% of the Value of Fixed Assets (VFA) (max. INR 40 Lakh) |
| Medium Enterprises | INR 50 Lakh |
| Large, Mega, Ultra Mega and Super Mega Enterprises | 20% of the Value of Fixed Assets (VFA) for first two units (max. INR 20 crore per project) |
| Exemption of stamp duty | |
| Interest free loan on Net SGST | Yes (For Large, Mega, Ultra Mega and Super Mega Enterprises) |
| Concessional registration charges | |
| Reimbursement of land conversion fee | |
| Subsidy for setting up effluent treatment plant (ETP) | |
| Exemption of tax from electricity tariff | |
| Investment promotion subsidy | |
|---|---|
| Micro Enterprises | 25% of the Value of Fixed Assets (VFA) (max. INR 15 Lakh) |
| Small Enterprises | 20% of the Value of Fixed Assets (VFA) (max. INR 40 Lakh) |
| Medium Enterprises | INR 50 Lakh |
| Large, Mega, Ultra Mega and Super Mega Enterprises | 20% of the Value of Fixed Assets (VFA) for first five units (max. INR 5 crore per project) |
| Exemption of stamp duty | |
| Interest free loan on Net SGST | Yes (For Large, Mega, Ultra Mega and Super Mega Enterprises) |
| Concessional registration charges | |
| Reimbursement of land conversion fee | |
| Subsidy for setting up effluent treatment plant (ETP) | |
| Exemption of tax from electricity tariff | Yes (For MSMEs) |
Furthermore, to facilitate the penetration and usage of electric vehicles, the Karnataka government has proposed to provide the following incentives to EV in non-transport and transport vehicles, and service providers.
| Sub-category | Incentive Type |
|---|---|
| Electric non-transport and transport including e-rickshaws and e-cart | Tax Exemption |
| Sub-category | Incentive Type |
|---|---|
| Fast-charging stations for electric 2-wheelers, 3-wheelers, cars and buses | Capital subsidy of 25% on the equipments/Machinery subject to maximum of Rs 10,00,000/- per station for the first 100 fast charging stations in the State. |
| EV battery switching/swapping stations for electric 2-wheelers and 3-wheelers. | Capital subsidy of 25% on the charging equipments/machinery subject to maximum of Rs. 3,00,000 per station for the first 100 battery switching/swapping stations in the State. |
| EV battery switching/swapping stations for electric cars | Capital subsidy of 25% on the charging equipments/machinery subject to maximum of Rs. 5,00,000 per station for the first 50 battery switching/swapping stations in the State. |
| EV battery switching/swapping stations for electric buses | Capital subsidy of 25% on the charging equipments/machinery subject to maximum of Rs. 10,00,000 per station for the first 50 battery switching/swapping stations in the State |
