In a transformative move towards sustainable transportation, the Government of Andhra Pradesh has introduced the Andhra Pradesh Sustainable Electric Mobility Policy (4.0) for 2024-2029. This comprehensive policy, issued under G.O.Ms.No.88 by the Industries and Commerce (P&I) Department, is set to make Andhra Pradesh a frontrunner in India’s electric vehicle (EV) revolution.
With ambitious goals, innovative incentives, and a focus on environmental and economic sustainability, this policy positions Andhra Pradesh as a global hub for EV manufacturing and adoption. Let’s dive into its key aspects, benefits, and what it means for stakeholders.
The Vision for Andhra Pradesh's Electric Future
At the heart of the Andhra Pradesh Sustainable Electric Mobility Policy (4.0) lies a visionary goal: establishing the state as a premier global hub for high-value EV manufacturing and achieving carbon neutrality in the transport sector by 2047. By strategically intertwining supply-side and demand-side initiatives, the policy seeks to:
- Promote EV adoption across all vehicle segments.
- Foster sustainable end-of-life practices for vehicles.
- Build an integrated ecosystem involving public and private stakeholders.
Key Objectives of the Policy
The policy outlines several objectives to propel Andhra Pradesh into the EV forefront:
- Accelerate EV Adoption: Encourage citizens to embrace electric mobility by creating a supportive ecosystem.
- Boost Public Transport Electrification: Transform the APSRTC fleet into a fully electric fleet.
- Develop EV Infrastructure: Establish robust charging and battery-swapping networks.
- Promote Manufacturing: Enhance value-added EV manufacturing capabilities within the state.
- Focus on R&D: Invest in next-gen technologies and innovation in the EV sector.
- Achieve Recycling and Sustainability Goals: Promote e-waste recycling and vehicle scrapping facilities.
E-Mobility Targets: Driving Change by 2029
As part of the push toward sustainable transportation, this policy outlines ambitious yet achievable goals to revolutionize e-mobility by 2029. Here’s what to expect:
- Register at least 2 lakh e2-wheelers, 10,000 e3-wheelers, and 20,000 e4-wheelers (BEVs).
- Public Transport: Achieve 100% electrification of the APSRTC fleet.
- Charging Infrastructure:
- Install 1 charging station every 30 km along designated green channels.
- Build 1 charging station per 3×3 km grid in e-mobility-focused cities.
- Startup Support: Establish 100 incubation centers for e-mobility innovation.
- Financial Investment: Utilize a ₹500 crore fund for building e-mobility cities.
Did You Know?
As of November 2024, Andhra Pradesh boasts 1.78 crore registered vehicles, of which 1.3 lakh are battery-electric vehicles (BEVs). However, the state still lags in EV adoption, highlighting the urgent need for this policy.
Key Financial Initiatives
Comprehensive Incentives for EV Manufacturers
The Andhra Pradesh government is committed to boosting electric vehicle (EV) manufacturing by offering strong support to manufacturers of all registration-type EVs, components, batteries, charging equipment, and related components used to operate Electric Vehicles. Whether you’re an MSME or a large-scale manufacturer, you can benefit from this policy designed to accelerate the growth of sustainable mobility.
Key incentives include investment subsidies, tax reimbursements, power tariff benefits, and stamp duty and land conversion fee reimbursements. Additional support comes in the form of training subsidies, patent and certification assistance, decarbonization subsidies, and early bird incentives for manufacturers who act fast.
Ready to explore the full list of manufacturer’s incentives? Visit our blog on Financial Incentives for EV Manufacturers Under AP Sustainable Electric Mobility Policy (4.0) to learn more!
Support for Charging Infrastructure Development
A reliable and extensive charging network is critical for EV adoption. The policy prioritizes:
- Land Allotments: Government and public lands are offered to private operators at the floor price of Rs. 1 per sq.ft in case of buildings and Rs. 1 per sq yard in case of land.
- Capital Subsidies: 25% subsidy on the cost of public charging stations, up to ₹3 lakh per station.
- Mandates for New Buildings: Commercial complexes and housing societies over 5,000 sq.m. must include EV charging provisions.
- Power Tariffs: Special EV electricity tariff category with ToD and Dynamic tariff mechanisms.
Support for Vehicle Recyclers, Scrapping, and ATS operators
The Government of Andhra Pradesh is driving sustainability through the Vehicle Scrapping Policy under SEMP 4.0. This initiative encourages the replacement of old, polluting vehicles with eco-friendly alternatives by supporting Registered Vehicle Scrap Facilities (RVSF) and Automated Testing Stations (ATS). To boost participation, the state offers attractive incentives:
- Investment Subsidies: Up to 45% of fixed capital investment, capped at ₹7 crore for ATS operators and ₹10 crore for RVSF operators.
- Land Rebates: 50% land cost rebate, capped at ₹20 lakh, along with 100% stamp duty reimbursement for industrial land purchases.
- Power and Conversion Benefits: ₹2/unit power cost reimbursement for 6 years (up to ₹15 lakh annually) and 100% land conversion fee reimbursement.
- Certification Support: 75% reimbursement on quality certification costs, capped at ₹3 lakh.
- Tax Benefits: 100% reimbursement of Net SGST paid to the state.
These incentives aim to build a robust ecosystem for recycling and testing facilities, fostering green practices and reducing vehicular pollution in Andhra Pradesh.
Incentives for Consumers and Fleet Operators
To drive EV adoption, consumers are rewarded with:
- Purchase Incentives: Buyers of electric vehicles are eligible for a 5% discount off the ex-showroom price. The discount increases to 10% if the buyer provides a Certificate of Deposit (CoD) from a recognized RVSF operator, with the CoD exchanged for the same type of vehicle (e.g., a two-wheeler for a two-wheeler).
The incentive is available until March 2027, and the ex-showroom price must not exceed:
| E-2W | E-3W | E-Bus | E-Goods Carrier | E-Tractor |
|---|---|---|---|---|
| ₹1 Lakh | ₹2 Lakh | ₹2 Cr | ₹5 Lakh | ₹8 Lakh |
- Road Tax Exemptions: EVs enjoy a 100% exemption for five years.
- Registration Fee Waivers: Exemptions for EV registrations and renewals.
- Subsidies for End-of-Life Recycling: Incentives for scrapping old vehicles and replacing them with EVs.
Did You Know?
The policy offers no incentives for hybrid EVs, emphasizing a clear push toward fully electric solutions.
Non-Financial Initiatives
Andhra Pradesh is committed to promoting electric mobility through several non-financial incentives that make it easier to adopt EVs and boost their infrastructure.
Creating E-Mobility Cities & Green Corridors
- Model E-Mobility Cities: One city in each of the five zones (North Andhra, Godavari Districts, Central Andhra, South Andhra, Rayalaseema) will be developed as a model Electric Mobility (EM) city. A dedicated INR 50 Cr fund for each model city will be used to develop these e-mobility cities.
- Green Routes: Special routes connecting these cities will be identified and equipped with charging stations through private partnerships.
- Incentives for Buildings:
- New commercial complexes, housing societies, and residential townships with over 5,000 sq.mt will be required to set up charging stations.
- Existing commercial buildings like malls will be incentivized to create charging or battery-swapping stations.
- Dedicated Charging Areas: Certain areas in cities will be reserved for charging and swapping stations for fleet aggregators.
- No Fancy Number Plates Reservation: EVs are exempt from reserving fancy number plates.
Electrification of Public Transport
- Retrofit EVs: The government will promote retrofitting existing vehicles into electric ones with certified technology.
- EV Procurement: State departments will be encouraged to buy EVs directly without the need for a tender process.
Support for Research & Development
- R&D Grant: The state government will invest INR 250 Cr in research and development for innovative EV solutions, especially in battery systems and intelligent transportation.
- Testing Centers: The government will establish testing and quality control labs for EV products in collaboration with National Automotive Testing and R&D Infrastructure (NATRIP). These will be available to startups and manufacturers.
These non-financial incentives are designed to create an EV-friendly ecosystem, promote innovation, and make electric vehicles more accessible for everyone in Andhra Pradesh.
A Snapshot of Projected Outcomes by 2029
By the policy’s conclusion in 2029, Andhra Pradesh aims to achieve:
- Electrification of the APSRTC fleet.
- Registration of 2 lakh new electric two-wheelers.
- 20,000 new electric four-wheelers on the road.
- Charging station density: 1 station every 30 km along green corridors and every 3×3 km grid in major cities.
- INR 500 crore corpus fund utilization to create “E-Mobility Cities.”
- 100% recycling facilities to handle EV batteries and scrapped vehicles.
Environmental and Economic Benefits
Environmental Sustainability
The shift to electric mobility is expected to:
- Reduce carbon emissions: Aligning with the state’s goal of transport sector carbon neutrality by 2047.
- Minimize air pollution: Transitioning from internal combustion engine (ICE) vehicles to EVs will improve air quality.
- Promote renewable energy: Integration with green energy solutions for charging infrastructure.
Economic Growth and Employment
- Boost to Local Manufacturing: Encourages the establishment of EV and battery production units, reducing import dependency.
- Job Creation: Potential to generate thousands of jobs in EV manufacturing, R&D, and infrastructure development.
- Entrepreneurial Opportunities: Foster’s startups in battery recycling, charging solutions, and green logistics.
Tips for Entrepreneurs
Interested in EV manufacturing or services? Focus on:
- Battery Recycling: A growing sector, incentivized under the policy.
- Charging Infrastructure: Leverage subsidies to set up charging networks.
- R&D Opportunities: Tap into the ₹250 crore R&D fund for innovation.
Challenges to Overcome
Despite its ambitious goals, Andhra Pradesh faces challenges in implementing the policy:
- High Initial Costs: EVs remain expensive compared to traditional vehicles.
- Battery Dependence: Heavy reliance on imported lithium-ion batteries.
- Infrastructure Gaps: Charging infrastructure needs rapid scaling.
- Increasing Electricity Demand: The growing adoption of EVs will require a significant boost in power generation and grid capacity.
Ready to explore the full details of this transformative policy? Download the official G.O.Ms.No.88 PDF to access the complete roadmap and incentives. Let’s drive into a sustainable future together!
The Andhra Pradesh Sustainable Electric Mobility Policy (4.0) is a giant leap toward a cleaner, greener, and more prosperous future. Whether you’re a consumer, entrepreneur, or investor, this is your moment to ride the electric wave and contribute to India’s sustainable growth story.
