Five state packages
State packages sit on top of the central schemes. For an EV, battery or component maker they are often the larger and more certain benefit, because PLI-Auto is limited to its approved applicants and the SPMEPCI window has closed (see central incentives).
| State | Policy and validity | Headline incentives |
|---|---|---|
| Tamil Nadu | Industrial Policy 2021 (validity extended); Electric Vehicles Policy 2023 | Choice of 100% SGST reimbursement for 15 years or a capital subsidy of up to 25% paid over up to 15 years. Training subsidy of ₹4,000 per worker a month for 6 months; electricity tax exemption for 5 years. VinFast’s plant is at SIPCOT Thoothukudi. |
| Uttar Pradesh | EV Manufacturing and Mobility Policy 2022; Industrial Investment & Employment Promotion Policy 2022 (5 years) | Capital subsidy of 30% of eligible fixed capital investment, capped at ₹1,000 crore and paid over 20 years, for the first two integrated EV and first two ultra-mega battery projects; 20%, capped at ₹500 crore over 10 years, for the first five mega EV and mega battery projects; MSMEs 10%, up to ₹5 crore. |
| Maharashtra | Industry, Investment and Services Policy 2025 (five years from notification) | Investment Promotion Subsidy on 100% of gross SGST on first sales in the state for eligible MSMEs and Special LSI units; six Ultra Mega Industrial Parks of at least 5,000 acres each. Toyota plans a plant at Bidkin. |
| Karnataka | Industrial Policy 2025-30 (five years from 8 February 2025); Clean Mobility Policy 2025-30 | Large to ultra-mega projects: capital subsidy of 10% to 25% of fixed capital investment by zone, or a production-linked incentive of 1.0% to 2.5% of net sales for 7 years; 100% stamp duty exemption. |
| Haryana | Electric Vehicle Policy 2022 (five years from 10 July 2022) | Capital subsidy of 20% of FCI, capped at ₹20 crore, for the first three mega units, or 50% net SGST reimbursement for 10 years; 100% stamp duty reimbursement; 100% electricity duty exemption for 20 years. |
Incentives are summarised; eligibility, caps and the order of applications are set by each policy and its operational guidelines.
Note: ₹1 crore = ₹10 million.
Reading the packages
SGST refund or capital subsidy. Tamil Nadu and Haryana offer a choice between reimbursing state GST and a capital subsidy. Maharashtra’s Investment Promotion Subsidy is tied to gross SGST on first sales in the state, for eligible MSMEs and Special LSI units. The right choice depends on whether the plant sells mainly within the state or ships elsewhere and exports.
First-come limits. Uttar Pradesh’s top tiers apply only to the first two integrated EV projects, the first two ultra-mega battery projects and the first five mega EV and mega battery projects. Haryana’s capital subsidy is limited to the first three mega units. Order of application matters.
Investment timing. Uttar Pradesh counts only projects with at least 80% of capital investment made after the policy’s effective date (UP IIEPP 2022). Apply before investing; see step 3 of the set-up roadmap.
Payment period. Large subsidies are paid in instalments: up to 15 years in Tamil Nadu and up to 20 years for Uttar Pradesh’s top tier. The business case should discount these flows rather than treat them as upfront support.
Validity. Haryana’s EV policy runs five years from 10 July 2022, and Uttar Pradesh’s IIEPP 2022 is a five-year policy, so both are in the later part of their stated terms. Karnataka’s policy runs five years from 8 February 2025; Tamil Nadu’s Industrial Policy 2021 has had its validity extended. Confirm the current position with the state agency before relying on any of them.
Clusters named in the sources
- Tamil Nadu: SIPCOT Industrial Park, Thoothukudi, where VinFast inaugurated its EV assembly plant on 4 August 2025. Tamil Nadu is also one of the four states named for the Rare Earth Corridors announced in Budget 2026-27, with Odisha, Kerala and Andhra Pradesh.
- Maharashtra: the Bidkin industrial area, where Toyota Kirloskar Motor plans a 100,000-vehicle plant and Toyoda Gosei a supplier plant, both producing from the first half of 2029; and six Ultra Mega Industrial Parks of at least 5,000 acres each.
- Uttar Pradesh, Karnataka and Haryana: state EV or clean-mobility policies as above; no specific park is named in the sources.
See recent investments for the projects and where FDI goes for state-level inflows across sectors.
What to check next
- Apply for the state package before committing capital; Uttar Pradesh’s 80% rule and first-come tiers reward early filing.
- Model SGST reimbursement against capital subsidy using your expected in-state sales and export mix.
- Confirm whether the Haryana and Uttar Pradesh policies have been extended or replaced as their five-year terms near their end.
- Check whether the state incentive can be combined with PM E-DRIVE or PLI benefits under the state’s cumulation rules.
- Compare the cross-sector state packages on state incentives and the incentive tracker.