New e-vehicle policy approved, minimum investment of Rs 4150 crore required. Loktej Business News

New Delhi, March 15 (HS). The Central Government has approved the new Electric Vehicle (e-Vehicle) Policy to promote and strengthen the manufacturing of Electric Vehicles (EV) in the country. For this, a minimum investment of Rs 4150 crore ($500 million) is required, while there is no limit on the maximum investment.

The Ministry of Commerce and Industry said in a statement issued on Friday that efforts have been made to promote India as a manufacturing destination for EVs and attract investments from reputed global EV manufacturers. According to the ministry, under the new electric vehicle policy, a company will be required to invest a minimum of Rs 4,150 crore. It will also be entitled to various duty concessions.

According to the ministry, to set up manufacturing facilities in India and start commercial production of EVs, 50 per cent domestic value addition will have to be achieved within a time frame of three years and a maximum of five years. Along with this, companies setting up manufacturing facilities for EVs will be allowed limited import of cars at lower custom duty.

According to the Commerce Ministry, companies meeting the standards will be allowed to import 8,000 electric vehicles per year at a reduced import duty of 15 percent on cars priced at $35,000 and above. The ministry said the move is expected to provide access to the latest technology and enhance the EV ecosystem and support the Make in India initiative.

Terms of the new electric vehicle policy

For this, a minimum investment of Rs 4150 crore (500 million US dollars) is mandatory, while there is no limit on the maximum investment.

Three years to set up manufacturing facilities in India and timeline to start commercial production of e-vehicles and reach 50 per cent domestic value addition (DVA) within a maximum of five years.

Domestic Value Added (DVA) during construction: Localization level of 25 per cent to be achieved by the third year and 50 per cent by the fifth year.

For this, customs duty of 15 per cent (as applicable to CKD units) will be applicable on vehicles with minimum CIF value of US$ 35,000 and above for a total period of 5 years, provided the manufacturer is established in India within a period of 3 years. Set up manufacturing facilities in.

The duty foregone on the total number of EVs permitted for import will be limited to the investment made or Rs 6484 crore (equivalent to the incentive under the PLI scheme), whichever is lower. If the investment is US$800 million or more, a maximum of 40 thousand EVs will be allowed at a rate of not more than 8 thousand per year. Unused annual import limits will be allowed to be carried forward.

The ministry said that this step of the government will provide Indian consumers access to the latest technology. This will promote Make in India initiative. This policy will strengthen the EV ecosystem by promoting healthy competition among EV companies, leading to higher volume production, economies of scale, lower cost of production, reduction in crude oil imports. Apart from this, trade deficit will be reduced, air pollution will be reduced especially in cities and there will be positive impact on health and environment.