Govt approves scheme to boost electric passenger car manufacturing in India
New Delhi, June 2 (UNI) The Central government on Monday approved a forward-looking scheme to promote the domestic manufacture of passenger cars, with a special focus on electric vehicles (EVs).
Addressing a press conference, Union Minister of Heavy Industries HD Kumaraswamy said, 'This landmark initiative aligns with India's national goals of achieving Net Zero by 2070, fostering sustainable mobility, driving economic growth, and reducing environmental impact. It is designed to firmly establish India as a premier global destination for automotive manufacturing and innovation'.
He said, the scheme is strategically crafted to position India as a global hub for electric vehicle manufacturing. With a minimum investment threshold of Rs 4,150 crore, it provides an enabling policy environment for leading global and domestic players to establish long-term manufacturing footprints in the country.
Through calibrated customs duty concessions and clearly defined domestic value addition (DVA) milestones, the scheme strikes a balance between introducing cutting-edge EV technologies and nurturing indigenous capabilities, Kumaraswamy said.
'By mandating domestic value addition targets the scheme will further boost the 'Make in India' and 'Aatmanirbhar Bharat' initiatives, while empowering both global and domestic companies to become active partners in India's green mobility revolution,' he added.
The Ministry of Heavy Industries (MHI) has issued notification regarding detailed guidelines for the 'Scheme to Promote Manufacturing of Electric Passenger Cars in India' (SPMEPCI/the Scheme) MHI had issued the Scheme notification on 15th March 2024, an official statement said.
The Department of Revenue, Ministry of Finance had also issued the notification on March 15, 2024 for reduced import duties in line with the provisions of the Scheme. The notice for inviting applications under the scheme is proposed to be notified shortly, whereby the prospective applicants would be able to submit online applications.
The scheme shall help to attract investments from global EV manufacturers and promote India as a manufacturing destination for e-vehicles. It will also help put India on the global map for manufacturing of EVs, generate employment and achieve the goal of 'Make in India'.
To encourage the global manufacturers to invest under the scheme, the approved applicants will be allowed to import Completely Built-in Units (CBUs) of e-4W with a minimum CIF value of USD 35,000 at reduced customs duty of 15 percent for a period of five years from the Application Approval Date.
Approved applicants would be required to make minimum investment of Rs 4,150 crore in line with the provisions of the scheme.
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