GOVERNMENT OKS E-VEHICLE POLICY; MIN INVEST FIXED AT $500M

The EV policy norms imply firms will have to set up manufacturing and start production in India within 3 years with at least 25 per cent of the components sourced locally

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On Friday, the government approved an electric vehicle policy. This policy offers duty concessions to companies establishing manufacturing units within the country, provided they invest a minimum of USD 500 million.

This strategic step aims to attract major global players such as Tesla from the United States.

Based on an official statement, companies setting up manufacturing facilities for electric vehicles will be allowed to import a limited number of cars at lower customs duty.

The policy seeks to promote India as a manufacturing destination for EVs and attract investment from reputed global EV manufacturers, it added.

Under the policy, a company will be required to make a minimum investment of $500 million or Rs 4,150 crore. There will be no upper investment limit.

"The duty foregone on the total number of EVs allowed for import would be limited to the investment made or Rs 6,484 crore (equal to incentive under PLI scheme) whichever is lower.