Karnataka Clean Mobility Policy 2025-2030 targets Rs 50,000 crore investments, 1 lakh jobs

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Karnataka government, which was the first state in the country to launch an EV policy, will unveil the Clean Mobility Policy during the Invest Karnataka Global Investors Meet.

Sources told Moneycontrol that the policy was supposed to be launched on February 12 but will now be unveiled on either February 13 or 14.

The policy aims to position Karnataka as Asia’s leading clean mobility hub, attracting Rs 50,000 crore in investments and generating 1 lakh jobs by 2030.

Also, read: Global AI Conclave: Karnataka’s Clean Mobility Policy to create ecosystem for companies like Tesla

The policy aims to establish a sustainable clean mobility ecosystem through incentives, cluster development, and infrastructure expansion. It focuses on creating innovation, developing charging and hydrogen stations, and promoting collaborations between industry, academia, and startups.

Special incentives will drive investment in manufacturing clean mobility vehicles, battery packs, hydrogen fuel cells, motors, power electronics, and advanced energy storage solutions. The government plans to accelerate clean mobility adoption by developing a robust charging and hydrogen infrastructure network.

Clean mobility clusters

The policy has identified three clean mobility clusters: Gauribidanur in Chikkaballapur (825 acres, 70 km from Bengaluru), Chikkamalligewada in Dharwad (1,000 acres, 30 km from Hubballi airport), and Harohalli in Ramanagara (700 acres, 40 km from Bengaluru).

To encourage investment, Karnataka will provide financial support for clean mobility clusters, ensuring competitively priced land, pre-built factories, incubation centres, and testing labs. These clusters will facilitate research, development, and large-scale manufacturing while integrating supply chains to enhance efficiency. The incubation centres will support startups, and testing facilities will ensure compliance with safety and regulatory standards.

The policy offers incentives to manufacturers investing in EVs, hydrogen fuel cell vehicles, and related components. It supports battery production, including lithium-ion and fuel cells, alongside critical components such as electric motors, driveline systems, inverters, and battery management systems. Incentives also extend to battery recycling, testing facilities, and clean fuel infrastructure. Companies supplying at least 50 percent of their products to clean mobility OEMs will be eligible for benefits.

Incentives

Micro, small, and medium enterprises (MSMEs) will receive capital subsidies ranging from 20-35 percent of fixed assets, with exemptions on stamp duty, land conversion fees, and electricity taxes. Large, mega, and ultra-mega enterprises will benefit from a 20-25 percent capital investment subsidy, reimbursed in five annual instalments, along with 100 percent exemptions on stamp duty and land conversion fees. Special subsidies will be provided for effluent treatment plants to promote environmental sustainability.

ESCOMs will prioritise power supply, and the Commerce and Industries Department will assess power requirements for clean mobility clusters. Fast-charging and swapping stations will be installed every 50 km along highways and in key urban areas, government buildings, and public transport hubs.

Incentives will be provided for infrastructure expansion. Fast-charging stations will receive a 25 percent capital subsidy, up to Rs 10 lakh per station, for 500 stations. Battery-swapping stations for two-wheelers, three-wheelers, cars, and buses will also receive subsidies, with up to Rs 3 lakh for two- and three-wheeler stations, Rs 5 lakh for car stations, and Rs 10 lakh for bus stations, totalling 900 incentivised swapping points. Hydrogen stations will be supported with a 25 percent capital subsidy of up to Rs 1 crore per station, covering 25 locations.

To strengthen the clean mobility sector, Karnataka will establish common testing and certification facilities, reducing costs and waiting times while ensuring compliance with safety standards. The government will fund these projects through the National Automotive Testing and R&D Infrastructure Project (NATRIP) or public-private partnerships (PPP).

Companies achieving global benchmarks in battery technology will be eligible for a 30 percent R&D cost reimbursement, up to Rs 1 crore for the first such enterprise. ITI, Polytechnic, and college programmes focused on EV technology will be expanded through industry collaboration, reducing training costs and creating a job-ready workforce. The state will also facilitate partnerships with leading international universities such as Stanford and Delft to drive knowledge transfer in clean mobility technologies.

Also, read: Bengaluru's power supplier sets up EV accelerator cell to promote battery-run vehicles