New Delhi, Nov 9 (KNN) The central government is in the process of simplifying policy regulations for the manufacturing of electric vehicles in India, reported Business Today TV citing government sources.

Government sources have stated that several ministries, including Finance, Heavy Industries, Road Transport, and Commerce, are engaged in discussions regarding potential incentives for foreign car manufacturers looking to produce vehicles in India for global markets.

As per the report, the Prime Minister’s Office also held a meeting for expediting policy decisions on the matter.

A reduction in the import duty and faster approvals are among the proposals that will be discussed by the officials. Officials will also consider tweaks to various incentive schemes like production linked incentive, advanced cell chemistry to make them wider in their scope of support for the EV sector.

Currently, vehicles with a value up to USD 40,000 are subject to a 70 Per cent import duty, while those exceeding USD 40,000 incur a 100 per cent import duty.

“We are in touch with executives of Tesla on its make in India plans”, the sources said. Business Today TV was the first to report this July on Tesla's localisation plans including the construction of a gigafactory with a capacity to produce 500,000 cars initially.

Tesla CEO Elon Musk and Prime Minister Narendra Modi had met during the latter's state visit to the US in June.

(KNN Bureau)