Ola would manufacture a lakh and a half cars every year at the hub. (FILE)
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.
"Tamil Nadu's electric vehicles policy has been revamped to suit the latest requirement. This became more lucrative to investors," Thangam Thennarasu told NDTV.
The Tamil Nadu government recently unveiled its electric vehicle policy 2023 which aims to garner investments to the tune of Rs 50,000 crore and generate 1.50 lakh jobs, in a boost to the EV industry.
The automaker would manufacture a lakh and a half cars every year and create a little more than 3,000 jobs. "We expect the roll out towards the end of this year or early next year. We are so happy about this. There are similar investments in the pipeline and other investors, including Samsung, have chosen Tamil Nadu for their expansion," Mr Thennarasu said.
The hub will be used for manufacturing electric two-wheelers, cars and battery cells, in addition to housing vendor and supplier parks, Ola said in a statement Friday.