Kerala is currently hard at work developing its next-generation Electric Vehicle Policy, dubbed ‘EV Policy 2.0’. This updated framework is being crafted to fully embrace the rapid technological changes, shifts in the market, and innovative business models emerging within the e-mobility landscape.
The state first introduced an electric vehicle policy in 2019. Now, with a few years under its belt, the draft EV Policy 2.0 is actively being prepared to refine and advance those initial efforts.
According to Puneet Kumar, the Additional Chief Secretary for Power, this new policy isn’t just a simple update; it’s a comprehensive overhaul. He explained to The Hindu that the government is carefully reviewing all the insights gained from Kerala’s journey with e-mobility to push the policy to a ‘next level’ of effectiveness.
Many studies have already been carried out, and their valuable recommendations are actively being integrated into this new policy, Mr. Kumar noted, adding that the finalization process will still require some time.
The revamped policy is anticipated to remain in effect for a period of five years.
In a related development, the ‘Shoonya EV Conclave 2025’, a collaborative event hosted by the Kerala State Electricity Board (KSEB), NITI Aayog, and the Rocky Mountain Institute (RMI), recently put forward several key suggestions for EV Policy 2.0. Among these proposals were financial incentives like waiving road taxes for electric vehicles, alongside strategies to achieve a significant 15% reduction in tailpipe carbon emissions.
The conclave highlighted that Kerala has the potential to prevent approximately 15.94 million tonnes of tailpipe carbon emissions by 2030 through carefully planned emission reduction efforts. Furthermore, it recommended that the EV Policy 2.0 should allocate around ₹500 crore over its five-year span. This fund would support crucial ‘policy levers’ including financial incentives, programs for retrofitting older vehicles, toll exemptions, the electrification of highway corridors, and various public awareness campaigns.
A comprehensive package of financial and non-financial incentives was proposed, along with new requirements concerning charging infrastructure, financing mechanisms, governance, and public engagement. Specifically, the forthcoming policy might include a waiver of road tax and registration fees for personal electric vehicles for the next five years, as well as incentives for converting existing vehicles to electric.
Further incentives suggested were a complete exemption from parking fees for the initial two years, dedicated parking spaces for EVs in government facilities, and a 50% reduction on highway tolls, also for the first two years.
Additional recommendations included appointing the Kerala State Electricity Board (KSEB) as the primary State Nodal Agency responsible for building a ‘robust and easily accessible’ EV charging network across Kerala. The conclave also pushed for amending building codes to ensure new constructions include EV-ready parking spaces and for implementing a streamlined, single-window approval process for establishing new charging stations.
From a governance perspective, the presentation delivered on Thursday also advocated for the formation of a dedicated steering committee. This committee would be tasked with overseeing and directing the effective implementation of the new EV policy.