The new policy seeks to significantly boost the adoption of electric vehicles by involving key stakeholders, including public transport providers, private fleet operators, and developers of charging infrastructure.
The Andhra Pradesh government has announced the Sustainable Electric Mobility Policy 4.0, which is designed to make the state a centre for electric vehicle (EV) innovation and production. Covering the period from 2024 to 2029, the policy aims to enhance the slow uptake of EVs and expand the local manufacturing base.
Recent data indicates that out of approximately 1.78 crore vehicles in Andhra Pradesh, only about 1.3 lakh are battery electric vehicles (BEVs), and a mere 817 are strong hybrid EVs. The state currently has 601 public charging stations, distributed at an average of one station every 205 kilometres. This scarcity underlines the critical need for a more robust infrastructure to support electric mobility.
The policy is set to significantly boost EV adoption by fostering collaboration among key stakeholders, including public transportation providers, private fleet operators, and charging infrastructure developers. This is expected to create a comprehensive ecosystem that not only enhances EV manufacturing but also drives consumer demand for electric vehicles.
Andhra Pradesh has ambitious targets for EV adoption by 2029, planning to register at least 200,000 new electric two-wheelers, 10,000 electric three-wheelers, and 20,000 four-wheeler BEVs. The government also intends to fully electrify the fleet of the Andhra Pradesh State Road Transport Corporation (APSRTC).
Further objectives of the policy include establishing a dense charging infrastructure with one charging station per 30 kilometres along green corridors and one station per 3×3 kilometre grid in designated e-mobility cities. An investment of INR 500 crore is earmarked to develop these cities.
The policy provides substantial support for Micro, Small, and Medium Enterprises (MSMEs) involved in the electric vehicle sector. They are eligible for an investment subsidy of 35 per cent of eligible fixed capital investments up to INR 7 crore, or 5 per cent of annual turnover for three years, capped at INR 10 crore. These enterprises will also receive power tariff reimbursement at INR 1 per unit, with a maximum annual limit of INR 15 lakh for six years, and a complete reimbursement of net State Goods and Services Tax (SGST) paid, ensuring the incentive does not exceed the investment made.
Enhanced subsidies are available for enterprises operated by BC/SC/ST/minority/physically abled/transgender investors, offering 45 per cent of fixed capital investment or 15 per cent of annual turnover for three years.
Operators of charging infrastructure are supported with capital subsidies of 25 per cent on the cost of public charging stations, capped at INR 3 lakhs per station for the first 5,000 EV public charging stations over five years. These operators will also benefit from power tariff concessions and the mandated installation of charging stations in new commercial and residential developments.
The government’s strategic non-financial incentives include the development of e-mobility cities and green corridors, with INR 50 crore dedicated per model city to build integrated infrastructure for easier EV adoption.
Additionally, the policy promotes retrofitting existing vehicles with certified electric technologies and supports extensive research and development in EV technology with a grant of INR 250 crore for innovative mobility solutions, positioning Andhra Pradesh as a leader in sustainable transportation.
