The Central Government has approved the new Electric Vehicle (e-Vehicle) Policy to promote and strengthen the manufacturing of Electric Vehicles (EVs) in the country. A minimum investment of Rs 4150 crore ($500 million) is required, while there is no limit on the maximum investment.
In a statement issued by the Ministry of Commerce and Industry says that efforts have been made to promote India as a manufacturing destination for EVs and attract investments from reputed global EV manufacturers. A company will be required to invest a minimum of Rs 4,150 crores and get various duty concessions.
According to the ministry, to set up manufacturing facilities in India and start commercial production of EVs, 50 percent domestic value addition will have to be achieved within the 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 customs duty.
The 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 enhance the EV ecosystem and support the Make in India initiative.