Andhra Pradesh has introduced its Sustainable Electric Mobility Policy 4.0 (2024-2029) to position itself as a global hub for electric vehicle (EV) manufacturing while promoting sustainable transport and aiming for carbon neutrality (Scope 1 emissions) by 2047. The policy sets ambitious goals, including registering at least 200,000 electric two-wheelers, 10,000 electric three-wheelers, and 20,000 four-wheeler battery EVs, alongside expanding charging infrastructure, with one station every 30 km along green channels and one per 3×3 km grid in e-mobility cities.
A Rs 5 billion corpus fund supports e-mobility cities and incubation centers for startups, while the Andhra Pradesh State Road Transport Corporation targets 100 per cent electrification. MSME manufacturers benefit from a 35 per cent investment subsidy (up to Rs 70 million) or 5 per cent annual turnover support for three years. For BC/SC/ST/minority/specially-abled/transgender-led enterprises, subsidies increase to 45 per cent or 15 per cent annual turnover support. Incentives also include power tariff reimbursement, SGST subsidies, electricity duty reimbursements, and additional support for certifications, patents, and training.
Additionally, large manufacturers will enjoy turnover-linked incentives tied to domestic value addition (DVA), capped at 25 per cent of fixed capital investment (FCI). Early participants can claim up to 40 per cent investment subsidies, and a decarbonisation subsidy encourages clean production. Support extends to charging/swapping station operators with 25 per cent capital subsidies (Rs 300,000 per station) and mandates for charging facilities in new constructions.
Furthermore, the policy fosters private industrial parks with capital subsidies and land-related fee waivers and incentivises recyclers and scrapping facilities under the Vehicle Scrapping Policy, with investment subsidies of up to 45 per cent of FCI and additional reimbursements. EV buyers receive purchase incentives of 5-10 per cent of the ex-showroom price (subject to caps), along with road tax exemptions for five years on eligible EVs.
