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Tamil Nadu Govt looks to turbocharge EV manufacturing plans

The state government is working on feasibility studies to develop EV and component factory clusters

, ET Bureau|
Updated: Oct 03, 2019, 11.34 AM IST
CHENNAI: Tamil Nadu is working on feasibility studies across locations including Chennai, Coimbatore, Hosur and other southern cities with an aim to develop electric vehicle (EV) and component factory clusters, according to a top government official.

The industrial corridors near Chennai and Coimbatore with established automotive component clusters have emerged as ideal locations to draw automakers amid a central push towards electric vehicles.

“Feasibility parameters such as power accessibility, water and other necessities are being looked at across locations, some of which are in advanced stages,” the senior official told ET.

A detailed project report is being prepared by the state’s industries promotion corporation. The ultimate location of the EV park and related tenders are expected to be announced in February 2020.

Last week, the state government announced deals worth nearly Rs 120 crore in the electric vehicle and component manufacture space. German group Mahle Electric and Japan's Nissei will set up manufacturing ventures in Tamil Nadu.

Tamil Nadu is looking at EV parks as a ticket to ensure the state builds a new technology ecosystem similar to the network created in the 90’s when the southern state attracted car manufacturers from Hyundai to Ford and Nissan, state government officials said.

“The research and development in EV, battery technology, charging and other areas is so fast and multifarious that one can never be sure when mass adoption kicks in. We need to be ready,” said a bureaucrat who worked on the state’s EV policy released recently.


The state is looking at a public private partnership model of infrastructure development. It also hopes to emulate the plug-and-manufacture type of factory development that has drawn contract phone makers and electronics manufacturers to Noida in Uttar Pradesh.

The Tamil Nadu government had also slashed sub-leasing charges to enable industries that have large and unutilised factory infrastructure to let it out without incurring much expenditure by way of payments to the government.

EV manufacturers are of the view that specialised parks are the ideal way to build an ecosystem for the nascent industry.

“With the government’s decision to go electric by 2030, the industry needs to strategise and plan out a route map to deliver results on time. EV parks should help both manufacturers and suppliers,” said Ayush Lohia, CEO of EV maker Lohia Auto.

As of now, Hyundai has committed large investments at its India plant near Chennai to manufacture its all-electric Kona. The state’s electricity regulator is soon expected to fix a tariff for commercial EV charging service providers.

As a beginning, the Chennai Metro Rail has set up a charging point in one its stations in the city. State government officials expect a Niti Aayog policy draft, anticipated to be out soon, to provide a boost to EV investments and draw more automakers looking to diversify to electric vehicles.

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