Andhra Pradesh EV Policy – 2024 • EVreporter

The Government of Andhra Pradesh, through its Industries and Commerce Department, issued the Andhra Pradesh Sustainable Electric Mobility Policy (4.0) 2024-29 on December 11, 2024. The policy, which is set to remain effective for five years or until a new policy is announced, aims to accelerate the adoption of electric vehicles (EVs) and establish Andhra Pradesh as a hub for EV manufacturing and adoption.

The Andhra Pradesh Sustainable Electric Mobility Policy (4.0) 2024-29 outlines a detailed framework to transition the state towards electric mobility. The policy builds upon the earlier EV policy (2018-2023) and introduces new incentives and measures to create a comprehensive ecosystem for EVs in the state. The overarching goal is to contribute to India’s target of achieving carbon neutrality in the transportation sector by 2047.

Objectives and Vision

The policy’s vision is to establish Andhra Pradesh as a global hub for high-value EV manufacturing while promoting sustainable practices. By 2029, the policy targets include:

• Registration of at least 2 lakh electric two-wheelers, 10,000 three-wheelers, and 20,000 four-wheelers.

• Achieving 100% electrification of the Andhra Pradesh State Road Transport Corporation (APSRTC) fleet.

• Establishing charging stations every 30 km along highways and every 3×3 km grid in e-mobility cities.

• The corpus fund of INR 500 crore will be allocated towards the development of e-mobility cities.

• 100 incubation centers have been set up for e-mobility startups.

Financial Incentives

The policy provides financial support across multiple domains:

• For Manufacturers: Investment subsidies of up to 35% for MSMEs, and incentives linked to domestic value addition (DVA) for larger firms. Subsidies are also offered for patent filing, quality certification, and electricity duty reimbursement.

• For Charging Infrastructure: A 25% capital subsidy, up to INR 3 lakh per Public Charging Station (PCS), is available for the first 5,000 EV PCS over 5 years, excluding land, electricity connection, DTR, and civil costs. Mandates for charging station installations are included for new residential and commercial developments.

1. Buyers can avail purchase incentives of 5% discount on the ex-showroom price of the EV (till March 2027)
2. 10% discount if buyer produces Certificate of Deposit (CoD) received from a recognized RVSF operator.
3. Purchase incentives are only applicable for vehicles with ex-showroom prices not exceeding – INR 1 Lakh for e-2Ws, INR 2 Lakh for e-3Ws, INR 5 Lakh for e-goods carrier, INR 8 lakh for e-tractor and INR 2 crores for e-bus.
4. Electric cars not eligible for purchase incentives.
5. 100% road tax exemption for electric vehicles registered in the state.
6. No purchase incentive or road tax exemptions for hybrid vehicles.

Policy Framework and Implementation

The policy introduces several innovative frameworks:

• E-Mobility Cities: Five cities will be developed as model EV hubs with enhanced infrastructure and green zones.

• R&D and Innovation: A research grant of ₹250 crore will support advancements in battery management, drivetrain systems, and fuel cell technologies.

• Vehicle Recycling: Registered Vehicle Scrapping Facilities (RVSF) and Automated Testing Stations (ATS) will receive subsidies and incentives to manage end-of-life vehicles and promote sustainable recycling practices.

Charging and Infrastructure Development

As of November 2024, Andhra Pradesh has 601 public charging stations, averaging one station every 205 km of road length. The policy sets a target density of one station every 30 km on green corridors and one station per 3×3 km grid in urban areas. Developers are incentivized to integrate EV charging points into urban infrastructure, including malls, airports, and residential complexes.

Stakeholder Engagement

The policy identifies key stakeholders, including manufacturers, fleet operators, public transport agencies, and charging infrastructure providers. It also assigns specific responsibilities to government agencies, such as APSRTC for public fleet electrification, the Transport Department for demand-side incentives, and NREDCAP for setting up charging facilities.

Key Dates and Implementation Period

• Policy Duration: Effective from December 11, 2024, until December 10, 2029, or until a subsequent policy replaces it.

• Milestones: Targets to be achieved by March 2027 include providing purchase incentives and developing key charging infrastructure.

Link to Policy document

Also read: Indian’s electric vehicle ecosystem |Policy updates in Mar 2024