Govt To Launch Application Process For EV Manufacturing Scheme In August

ENA Sectors 2024-05-21 16:48:06 New Delhi, May 21 (KNN) The Indian government is set to open the application window for its Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) in the coming months. This ambitious initiative aims to boost domestic production of electric vehicles (EVs) within the country, reported Businessline. According to senior government officials privy to the developments, the application process is expected to commence in July or August, following the 120-day period after the scheme's approval on March 15th. The window will remain open for approximately four to five months to allow companies to submit their proposals. To qualify for the SPMEPCI program, interested companies must commit to a minimum investment of USD 500 million towards establishing a new EV manufacturing plant in India. Successful applicants will be required to achieve a minimum domestic value addition of 25 per cent by the third year and 50 per cent by the fifth year of operation. Furthermore, the scheme offers incentives such as reduced customs duty of 15 per cent (down from the current 100 per cent) on the import of completely built electric vehicles with a cost, insurance, and freight (CIF) value of USD 35,000 or above. However, this benefit is limited to a maximum of 8,000 EVs per year for a period of five years and is subject to the amount of duty foregone or investment made. Existing companies in the automotive sector can also apply for subsidies under the SPMEPCI, provided they meet the minimum investment requirement and establish a dedicated EV production facility in India. In preparation for the application process, the government plans to hold consultative meetings with stakeholders over the next one to two months. These meetings will provide an opportunity to discuss industry concerns and gather feedback before finalising the guidelines for the policy. The first consultative meeting was held last month, with representatives from major automotive companies, including Tesla, Vinfast, Maruti Suzuki India, Tata Motors, and Mahindra & Mahindra, in attendance. Government officials have emphasised that the SPMEPCI is open to all interested parties, including global players like Tesla. The evaluation of applications will commence once the submission window closes, with eligible candidates poised to benefit from the scheme's incentives. The SPMEPCI marks a significant step in India's efforts to promote indigenous EV manufacturing, generate employment opportunities, and achieve the goals of the 'Make in India' initiative. (KNN Bureau) 37900 https://knnindia.co.in/news/newsdetails/sectors/govt-to-launch-application-process-for-ev-manufacturing-scheme-in-august 2024-05-21 16:48:06 knnindia.co.in Govt To Launch Application Process For EV Manufacturing Scheme In August