Electric vehicles (EV) firm Ola Electric committed investments to the tune of Rs 7,614 crore in Tamil Nadu to roll out electric light motor vehicles days after the state government unveiled its electric vehicle policy to boost the industry.
The investments include setting up of lithium-cell manufacturing facilities with a capacity of 20 GW. The overall investments by Ola Electric would generate 3,111 new direct jobs in the state.
Ola Electric Mobility Pvt Ltd signed a memorandum of understanding committing investments worth Rs 7,614 crore with the Government of Tamil Nadu in the presence of Chief Minister M K Stalin.
“The project comprises an electric vehicle cell plant and an electric four wheeler plant to be set up in SIPCOT Bargur, Krishnagiri district generating employment for up to 3,111 people,” Guidance Tamil Nadu, the nodal agency to boost investments set up by the government said.
“Ola will set up the world’s largest EV hub with integrated 2W, Car and Lithium cell Gigafactories in Tamil Nadu. Signed MoU with Tamil Nadu today. Thanks to Honourable CM MK Stalin for the support and partnership of the TN govt! Accelerating India’s transition to full electric!” Ola India CEO Bhavish Aggarwal said in a tweet.
Ola, co-founded by Bhavish Aggarwal, already owns 500 acres in Krishnagiri district and is seeking to expand its capacity for electric two-wheelers, as well as add production of electric cars and batteries.
In August 2022, Bhavish Aggarwal said that his company plans to launch its maiden electric car, with a range of more than 500 km on a single charge, in 2024 and is aiming to manufacture one million cars by 2026.
Tamil Nadu EV Policy 2023: 50,000 Crore Investment And 1.5 Lakh Jobs
Recently, the Tamil Nadu government has unveiled a new EV policy to promote the growth of a strong EV ecosystem in the state.
The government intends to raise Rs 50,000 crore for EV manufacturing and to generate employment for 1.5 lakh people.
The new strategy aims to promote EV adoption, strengthen the state’s ecosystem development, and create EV cities in Tamil Nadu. It also aims to make TN a popular location for EV manufacturing in South-East Asia.
The policy intends to build exclusive EV parks at its EV hubs of Krishnagiri and Manallur (Chennai).
The policy document reveals, among other things, that the state intends to reimburse State Goods and Services Tax (SGST), and provide turnover-based subsidies, capital subsidies, and special Advanced Chemistry Cell capital subsidies.