Bengaluru: Karnataka is one of the pioneers in the country to launch an electric vehicle policy (EV) in 2017, but failed to take advantage of the momentum and pursue behind countries such as Tamil Nadu, Maharashtra, Andhra Pradesh, and Gujarat.
Considered the future of the automotive industry, almost all countries are now looking for ways to attract investment in this sector.
But after having a bad trace record with at least two major car companies EV – one India and other international – Karnataka struggled to revive the image-friendly image.
The sources of the Industrial Department said the government had changed by deforming and redrawing laws that would help the industry come to Karnataka.
Minister Murugesh Nirani recognizes several land law and tax policies require improvement.
“Soil policy and our tax structure for the industry has become a serious Lacunae.
We are now trying to overhaul the structure, bring amendments and instill a new approach,” he said.
Changes include removing 99-year leases for sale in two years given land and allow direct purchases of land directly from farmers for industrial purposes with the action of Karnataka land reform.
Under the tax structure, the government explores the possibility of bending commercial and industrial taxes by reducing them.
“Wherever we left behind other countries, we have taken remedial actions and bring amendments,” said Nirani.
According to officials, four EV companies were in talks with the Industrial Department, but no one was committed to investing.
“We are in a follow-up stage in talks with a company that is likely to invest RS 700 Crore to produce commercial vehicles,” said an industrial department official, added it was possible that the company would have two units.
Nirani told TOI 3-4 companies in talks with the government and two of them closer to having bonds.
The government sought to establish an EV hub in four income divisions – each one in Dharwad, Kalaburagi, Mysuru, and the Tumakuru District.