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The government has approved a forward-looking scheme to promote the domestic manufacturing of passenger cars, with a special focus on electric vehicles (EVs). This landmark initiative is
aligned with India’s national goals of achieving net zero by 2070, fostering sustainable mobility, driving economic growth, and reducing environmental impact. It is designed to firmly
establish India as a premier global destination for automotive manufacturing and innovation. Advertisement The Ministry of Heavy Industries (MHI) issued a notification regarding detailed
guidelines for the “Scheme to Promote Manufacturing of Electric Passenger Cars in India” on 15 March 2024. The Department of Revenue also issued a notification simultaneously for reduced
import duties in line with the provisions of the scheme. Advertisement The notice for inviting applications under the scheme is proposed to be issued shortly, whereby the prospective
applicants will be able to submit online applications. The scheme shall help attract investments from global EV manufacturers and promote India as a manufacturing destination for e-vehicles.
The scheme will also help put India on the global map for the manufacturing of EVs, generate employment, and achieve the goal of “Make in India”. To encourage the global manufacturers to
invest under the scheme, the approved applicants will be allowed to import Completely Built-in Units (CBUs) of e-4W with a minimum CIF value of $ 35,000 at reduced customs duty of 15% for a
period of five years from the Application Approval Date. Approved applicants would be required to make a minimum investment of Rs 4,150 crore in line with the provisions of the scheme.
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