EV policy to be tweaked based on BTA outcome

THE GOVERNMENT WILL tweak its new electric vehicle (EV) policy based on the outcome of ongoing bilateral trade agreement (BTA) and free trade agreement (FTA) negotiations.

- NITIN KUMAR

If the talks lead to tariffs being reduced and brought close to the 15% level currently offered under the policy, then lower duty would be offered as part of a revised policy, officials said.

As part of the possible changes, the government could consider reducing the tariff to zero in the policy, further lowering the investment commitment, relaxing the domestic value addition (DVA) requirement, or implementing a combination of these measures to further sweeten the deal.

"We are open to changes in the policy, but only based on the outcome of the trade deals. If the tariff relaxation aligns with the levels offered in the policy, we would consider revising it," the official said.