Electricity Duty Exemption
Electricity Duty Exemption
Power Subsidy and Incentives (Electricity Duty Exemption)
Under the Haryana Electric Vehicle Policy‑2022, this scheme grants 100% electricity duty exemption for 20 years to eligible EV manufacturing units in the state. This substantially reduces the power cost burden and boosts competitiveness. The scheme targets manufacturers of electric vehicles, major EV components, batteries, and charging/charging‑related infrastructure using electricity directly in production (not for resale).
Objectives and Benefits
The core objective is to incentivize EV and component manufacturing in Haryana by creating a more conducive cost structure for investors. This aligns with broader goals of promoting clean mobility, attracting high‑value projects, and positioning Haryana as a competitive EV manufacturing hub.
Quantum of Assistance
- 100% Exemption: Eligible units receive full exemption from electricity duty for up to 20 years.
- Scope: Applies to power used for manufacturing operations, including captive power used for own production.
- Exclusion: Does not apply to power sold to other entities.
Eligibility and Conditions
- Target Units: Manufacturers of EVs, major components, batteries, and charging infrastructure.
- Timeline: Must commence commercial production on or after 10 July 2022 in approved locations.
- Compliance: Must not be on the state’s restrictive list and must comply with investment/operational benchmarks.
- Environmental: Large and mega projects are expected to install systems for safe battery disposal and recycling.
Application and Processing
- Portal: Applications are filed online on the Department of Industries & Commerce, Haryana portal.
- Documents: Udyam Registration, project details, and proof of plant and machinery investment.
- Timeline: Claims must be submitted within a specified period from the start of commercial production (commonly within three months).
- Inspection: Claims are examined by the Joint/Deputy Director, District Industries Centre, usually with a unit inspection.
Sanction, Appeals, and Penalties
The competent authority recommends the exemption. Enterprises aggrieved by an order can appeal to higher authorities (Director/Director General, Industries & Commerce) within the notified time limit (often 30 days). Misrepresentation or misuse leads to cancellation of benefits and recovery of the exempted duty with interest.