The government is in the process of finalizing comprehensive guidelines for companies planning investments under the recently approved electric-vehicle (EV) policy, an official announced on Friday.
A second round of consultations with stakeholders is anticipated soon, following the initial round held last month by the Ministry of Heavy Industries.
These forthcoming guidelines are expected to provide critical information, including application procedures, portal links, and details about the Project Monitoring Agency (PMA).
They aim to address and clarify several aspects not covered in the original policy.
Under the new policy, auto companies in India can apply for incentives by committing to substantial investments. “They can apply under the new policy for an import license for a certain number of EVs, and in order to qualify, they will have to commit to us the investments,” the official stated.
Companies already operating in India do not need to establish a new subsidiary to qualify for these incentives. “Investment has to be a green field, the company doesn’t have to be greenfield,” the official clarified.
This means that firms which began investing in the EV ecosystem before the policy's announcement are also eligible for incentives, provided they start spending money post-policy enactment.
Once the guidelines are established, the government will launch a portal to accept applications and ensure compliance with the policy.
Companies will have three years to establish manufacturing facilities and start commercial production, achieving 50 percent domestic value addition (DVA) within a maximum of five years.
The policy also permits companies to import a limited number of EVs at a reduced customs duty rate of 15 percent on vehicles costing USD 35,000 and above for five years from the date of approval.
However, applications from auto companies based in countries sharing a land border with India, such as China, Bangladesh, and Pakistan, will undergo more stringent scrutiny due to foreign direct investment norms.
Under the scheme, companies can import a maximum of 8,000 EV passenger cars per year at the reduced duty rate, with the possibility of carrying over unused annual import limits.
Follow us
