Centre launches new scheme to make India global hub for maki
Centre launches new scheme to make India global hub for making electric cars
The government on Monday notified guidelines for its forward-looking scheme to enable fresh investments from global manufacturers in the electric cars segment
NEW DELHI — The government on Monday notified guidelines for its
forward-looking scheme to enable fresh investments from global manufacturers in
the electric cars segment and promote India as a global manufacturing hub for
e-vehicles.
To encourage global manufacturers such as US tech giant
Tesla to invest under the scheme, the approved applicants will be allowed to
import completely built-in units (CBUs) of electric four-wheelers with a
minimum CIF (cost insurance and freight value) of $35,000 at reduced customs
duty of 15 per cent for a period of 5 years from the date that the application
is approved. .
Approved applicants would be required to make a minimum
investment of INR 4,150 crore in line with the provisions of the scheme.
The maximum number of e-4Ws allowed to be imported at the
reduced duty rate will be capped at 8,000 units per year. The carryover of
unutilised annual import limits would be permitted.
According to the notification, the maximum number of EVs
to be imported under this scheme will be such that the maximum duty foregone
per applicant will be limited to INR 6,484 crore, or the committed investment of
the applicant of a minimum of INR 4,150 crore, whichever is lower.
The Standard Operating Procedure (SOP) issued under the
Production Linked Incentive (PLI) Scheme for Automobile and Auto Component (PLI
Auto Scheme) would be followed to assess the DVA of the eligible product as
required under the scheme.
Certification of DVA of an eligible product manufactured
in India by the approved applicant would be done by testing agencies approved
by the Ministry of Heavy Industries.
Investment should be made for the domestic manufacturing
of the eligible product. In case the investment under the scheme is made on a
brownfield project, a clear physical demarcation with the existing
manufacturing facilities should be made, the notification states.
Expenditure incurred on new plant, machinery, equipment
and associated utilities, and engineering research and development
(ER&D) would be eligible.
The expenditure incurred on land will not be considered.
However, buildings of the main plant and utilities will be considered as part
of the investment provided it does not exceed 10 per cent of the committed
investment, the notification further states.
Expenditure incurred on charging infrastructure would be
considered up to a maximum of 5 per cent of the committed investment, it
explains.
The applicant’s commitment to set up manufacturing
facilities, achievement of DVA, and compliance with conditions stipulated under
the scheme shall be backed by a bank guarantee from a scheduled commercial bank
in India equivalent to the total duty to be forgone, or Rs 4,150 crore,
whichever is higher, during the scheme period. The bank guarantee should be
valid at all times during the tenure of the scheme, the notification added.
The scheme shall help to attract investments from global
EV manufacturers and promote India as a manufacturing destination for
e-vehicles. The scheme will also help put India on the global map for
manufacturing of EVs, generate employment and achieve the goal of 'Make in
India', according to the official statement.
This landmark initiative is aligned 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, the statement added.
