Automobiles Sector Policy
Globally the focus is now on reducing Carbon footprint and technology advances mainly in the battery pack manufacturing sector, have increased the scope for adoption of e-vehicles. India’s electric vehicle market could be worth $206 billion (Rs.14,42,000 crore) in ten years, and the sector will attract a cumulative investment need of $180 billion (Rs. 12,50,000 crore) in vehicle production and charging infrastructure until 2030 to meet India’s EV ambition.
Tata Motors, one of India’s leading automobile companies, began manufacturing of commercial vehicles in the early 1950s at Jamshedpur. More than 600 auto ancillary industries have been subsequently set up at Adityapur, Jamshedpur to cater to the needs of automobile companies. It has generated direct employment for more than twenty-five thousand individuals and several times of it as indirect employment. All types of auto-grade steels are being produced in Jamshedpur since the 1980s. The aim is to establish Jharkhand as an automobile hub in India.
Adityapur Auto-Cluster has been made operational at Jamshedpur to extend common facilities, such as testing centre, design lab, tool rooms, calibration plants, IT Training Centre, effluent treatment plant, etc., to auto component makers. Automobile Vendor Park is planned to be established under PPP mode or Private sector by Mega Automobile Manufacturing Units. Ambitious policy announcements are critical in stimulating the e-vehicle rollout in major markets. The Government of Jharkhand intends to steer its policy to enable e-vehicle and spare part and ancillary unit manufacturing in the state and provide a robust institutional landscape to invite e-vehicle manufacturers to the state.
Based on the demand from the industry, the Government is also planning on allocating an EV Cluster in the state on the lines of the already existing auto cluster at Jamshedpur.
Incentives to Auto Sector (as per Jharkhand Automobile & Auto Component Policy 2016)
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Incentive |
Details (Chapter 5 of the Automobile and Auto-
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Capital Subsidy for Common Infrastructure |
Financial Assistance of 50%fixed capital investments, up to a maximum of Rs. 20 Crore |
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CST Concession for manufacturing units |
100%, for period of 10 years. |
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Subsidy on VAT |
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For new MSME units For new large projects For new mega & ultra-mega projects |
80%, upto maximum 150% of capex spent in 5 years 75%, upto maximum 150% of capex spent in 7 years 75%, upto maximum 150% of capex spent in 12 years |
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Patent & Quality Certification for MSME |
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Patent Registration |
75% of the cost incurred, upto max Rs 25 Lakhs. 50% of the cost incurred, upto max Rs 5 Lakhs. |
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Other Incentives |
Marketing Expansion/ modernization/ diversification Capital & Interest subsidy to MSME Stamp Duty & Registration fee Exemption |
