New Delhi, Aug. 14 -- India's states are racing to seize the electric vehicle (EV) manufacturing wheel, offering lucrative clean-energy policies as the Centre eases off the accelerator.

From Maharashtra and Tamil Nadu to Karnataka and Andhra Pradesh, top manufacturing states have put in place new EV policies over the past two years, dangling land discounts, tax breaks, and capital subsidies to woo EV makers and component suppliers. Joining them soon are Gujarat and Haryana, which are scheduled to release their new clean energy policies within the next one year.

The development comes at a time when multiple key central government schemes to boost manufacturing in the EV sector have not had much effect due to delays in disbursals and toug...