Central Government approves E- Vehicle policy - (15 Mar 2024)
Motor Vehicles
The Union Government has approved a scheme to promote India as a manufacturing destination so that e-vehicles (EV) with the latest technology can be manufactured in the country. The policy is designed to attract investments in the e-vehicle space by reputed global EV manufacturers. This initiative will provide Indian consumers with access to latest technology, boost the Make in India initiative, strengthen the EV ecosystem.
The Policy would encourage healthy competition among EV players leading to high volume of production, economies of scale, lower cost of production, reduce imports of crude Oil, lower trade deficit, reduce air pollution, particularly in cities, and will have a positive impact on health and environment. The policy entails the minimum Investment required. There is no limit on maximum Investment. Timeline for manufacturing is three years for setting up manufacturing facilities in India.
The customs duty of 15% (as applicable to CKD units) would be applicable on vehicle of minimum CIF value of USD 35,000 and above for a total period of 5 years subject to the manufacturer setting up manufacturing facilities in India within a 3-year period. The Investment commitment made by the company will have to be backed up by a bank guarantee in lieu of the custom duty forgone. The Bank guarantee will be invoked in case of non-achievement of DVA and minimum investment criteria defined under the scheme guidelines.
Tags : POLICY APPROVAL E-VEHICLES
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