Key Takeaways

• Karnataka’s clean mobility policy aims for Rs 50,000 crore investment and one lakh new jobs by 2030.
• The state is focusing on electric and hydrogen vehicle manufacturing, targeting enhanced infrastructure and subsidies.
• Karnataka seeks to establish itself as Asia’s leading hub for clean mobility amid competition from Tamil Nadu and Maharashtra.

Karnataka’s Clean Mobility Policy Unveiled

Karnataka has announced its clean mobility policy for the years 2025-2030, with ambitious goals centered around attracting approximately Rs 50,000 crore in investments and generating one lakh jobs across the clean mobility value chain. The policy, introduced by Energy Minister KJ George, aims to establish Karnataka as a frontrunner in the manufacturing of Electric Vehicles (EVs) and hydrogen vehicles.

The state has already made significant progress, securing Rs 25,000 crore in investments related to the EV ecosystem, which encompasses battery pack manufacturing, cell production, original equipment manufacturers (OEMs), charging infrastructure, and research and development. Industries Minister MB Patil noted that an additional Rs 15,000 crore is anticipated by the end of August 2023.

Currently, Karnataka is ranked third in India for EV registration, with about 2.5 lakh vehicles on the road. The new policy seeks to capitalize on this momentum by further promoting the adoption of EVs and hydrogen-powered vehicles. At the heart of this initiative is the development of extensive infrastructure for clean mobility, which includes charging stations, hydrogen hubs, and the retrofitting of existing vehicles to operate on electric or hydrogen power.

The Karnataka government is placing a strong emphasis on establishing an extensive clean energy network statewide, including capital subsidies to support the creation of fast-charging stations, battery-swapping networks, and hydrogen fueling stations. This strategy is not only aimed at enhancing accessibility but also positions the state as a leader in clean mobility in Asia, steering towards a more sustainable transportation ecosystem.

In addition to infrastructure, the policy offers subsidies of up to 25% on total capital expenditures (capex) across the state, with Bengaluru Urban and Bengaluru Rural regions seeing an increase from the earlier cap of 20%. The government also intends to encourage partnerships with international institutions and boost EV-training programs in technical institutions, helping to build a skilled workforce for the burgeoning clean mobility industry.

Although Karnataka was the first state in India to implement a dedicated EV policy, it is in fierce competition with neighboring states like Tamil Nadu and Maharashtra, which currently host major EV assembly plants including those of Ola Electric and TVS Motor. Industry experts have indicated that while many EV manufacturers prefer Bengaluru for their headquarters, they may choose to establish their manufacturing facilities in states that offer better incentives. The new policy seeks to rectify this competitive disadvantage.

Moreover, the government plans to create three mobility clusters in Gauribidanur, Dharwad, and Harohalli. These clusters will serve as collaborative hubs for OEMs, suppliers, research and development centers, and testing facilities, aiming to foster innovation and improve manufacturing capabilities within the state. Notably, Dharwad is home to a Tata unit that produces buses in collaboration with the Marcopolo brand.

A key aspect of the EV initiative is the goal to install an additional 2,600 charging stations through public-private partnerships, boosting the existing infrastructure, which currently includes 5,403 EV charging stations in the state. With these strategic moves, Karnataka is poised to enhance its position in the nation’s electric vehicle landscape, encouraging both investment and innovation in clean mobility technologies.

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