Andhra Pradesh Unveils Sustainable Electric Mobility Policy 4.0 (2024-2029): A Leap Toward Carbon Neutrality

Andhra Pradesh has taken a giant stride toward sustainable transport by launching its Sustainable Electric Mobility Policy 4.0 (2024-2029). This forward-thinking initiative aims to boost electric vehicle (EV) adoption, expand EV manufacturing, and pave the way for carbon neutrality (scope 1 emissions) by 2047.

The policy outlines ambitious goals, such as the registration of 200,000 electric two-wheelers, 10,000 electric three-wheelers, and 20,000 electric four-wheelers over the policy duration. To support this transition, the state plans to develop a robust charging infrastructure, establishing charging stations every 30 km along designated green corridors and within 3×3 km grids in designated e-mobility cities.

Comprehensive Financial Incentives to Boost EV Ecosystem

A dedicated ?5 billion fund will drive the establishment of e-mobility cities and startup incubation centers, fostering innovation and growth in the EV sector.

Support for EV Manufacturers

• Micro, Small, and Medium Enterprises (MSMEs): Eligible enterprises will benefit from a 35-45% investment subsidy or turnover support for three years.
• Additional Focus on Inclusion: Enterprises led by marginalized groups will enjoy enhanced incentives.
• Large Manufacturers: A turnover-linked incentive capped at 25% of fixed capital investment offers significant support.

Charging Station Development

Operators setting up charging stations can access 25% capital subsidies, with a maximum limit of ?300,000 per station, encouraging rapid infrastructure growth.

Incentives for EV Buyers

To make EVs more accessible, the government is extending:

• Purchase incentives: Discounts ranging from 5-10% of the ex-showroom price.
• Road tax exemptions: Applicable for five years, lowering long-term ownership costs.

Encouraging Circular Economy and Recycling

The policy also promotes sustainability through private industrial parks, recycling centers, and scrapping facilities by offering:

• Subsidies up to 45% of investments.
• Fee waivers and reimbursements for setting up operations.

Key Objectives of the Sustainable Electric Mobility Policy

Andhra Pradesh’s comprehensive policy reflects its commitment to creating an EV-friendly ecosystem. By incentivizing startups, MSMEs, large manufacturers, and private players, the government aims to establish the state as a hub for sustainable electric mobility.

With clear targets and a roadmap for growth, this policy is set to make Andhra Pradesh a pioneer in achieving carbon neutrality by 2047 while fostering innovation, sustainability, and economic growth.

Credit: India Infrastructure