Why Ola Chose Tamil Nadu Over 5 Other States For Rs 7,600-Crore Deal
NDTV
The Tamil Nadu government credited its revamped Electric Vehicles Policy for the Rs 7,614 crore investment.
Electric vehicle maker Ola Electric will set up what it says will be the world's largest electric vehicle hub in Tamil Nadu. Five other states - Karnataka, Andhra Pradesh, Telangana, Gujarat and Uttar Pradesh - were in the race but the investment went in favour of Tamil Nadu.
The Tamil Nadu government credited its revamped Electric Vehicles Policy for the Rs 7,614 crore investment to manufacture electric cars in Krishnagiri district where it already manufactures electric two-wheelers.
State Industries Minister Thangam Thennarasu described the big-ticket investment as a reflection of the industry's confidence in Tamil Nadu. He explained the state offered the electric vehicle maker the choice of capital or turnover subsidy besides land subsidy and electricity benefits.
Along with the original equipment manufacturers, the state also offered amenities to battery manufacturers and to users to create an ecosystem. For instance, the users of these public electric vehicles will get a subsidy of Rs 10 lakh.
