Big business boost for Chief Minister Thalapathy Vijay’s government; Bajaj’s new EV plant to come up in Tamil Nadu

Auto major Bajaj Auto is all set to shift further expansion of its electric vehicle (EV) manufacturing plant outside the state due to a row with the Maharashtra government over subsidies and concessions. According to CNBC-TV18, Tamil Nadu is said to be leading the race. If this company comes to Tamil Nadu, it is said to be a big opportunity for the Thalapathy Vijay government. This will create a large amount of employment in the state. Earlier several companies have signed agreements with the Thalapathy Vijay government for major investment and employment in the state. So what exactly is this plan?

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What is the whole matter?

The entire matter is related to delay in financial assistance under Maharashtra government’s EV Policy and Package Scheme of Incentives PSI. Despite repeated representations to the Maharashtra government, no concrete steps have been taken in this direction. Bajaj Auto has started looking at other states for the next phase of EV capacity expansion.

Maharashtra government did not get the funds

As per the rules of the Maharashtra EV Policy 2021, companies were required to pass on the benefit of the government subsidy directly to the consumer at the time of sale of the vehicle and then get reimbursement from the government.
Bajaj Auto has given concessions to consumers, but sources say around 60% of the company’s subsidy claims for the financial year 2021-22 are pending with the Maharashtra government.

Investment of more than 2000 crores

Bajaj Auto has invested over Rs 2,000 crore to manufacture premium motorcycles, electric two-wheelers and three-wheelers at its factories in Chakan, Akurdi and Walaj in Maharashtra. Based on this investment, the company had applied for Eligibility Certificate under Package Scheme of Incentives (PSI) about 18 months ago, but it has not been issued yet. In addition, incentive claims cannot be processed.

Telangana is also in the race

Bajaj Auto is currently in talks with several states. Tamil Nadu seems to be the frontrunner to get investment due to its strong auto manufacturing ecosystem and port connectivity, while Telangana is also in the race. If successful, this will be Bajaj Auto’s first manufacturing plant in South India.

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