The government will call another meeting of interested parties to provide draft guidelines for a new policy on electric vehicles
Businesses may apply for as long as the window is open. As a result, companies will apply, and we will consider them, said a high ranking official.
The official said that manufacturers would have to make fresh investments in compliance with the updated requirements in order to benefit from the policy's incentives; prior investments will not be considered.
In a "month or two," a senior official announced on Monday, the Ministry of Heavy Industries will hold another round of stakeholder meetings before releasing draft guidelines for the new electric vehicle (EV) policy, which has been crafted to entice foreign automakers like Tesla to establish manufacturing operations in India.
The official said that manufacturers will have to make fresh investments in compliance with the revised requirements in order to benefit from the policy's incentives; prior investments would not be considered. The Vietnamese electric carmaker Vinfast, which said in February of this year that it would invest USD 500 million (about Rs 4,000 crore) in Tamil Nadu over a five-year period, has received this information from the official.
The government unveiled the historic Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) on March 15, 2024, which would fundamentally alter the EV landscape in India.
At the April 1st stakeholders' meeting, a representative from Tesla, The Asia Group (TAG), dispatched an advisor. Here, there are several depictions. After reviewing these, we may schedule the second consultation appointment for the next month or two.
"We have the responsibility of issuing guidelines," the official said.The government intends to release the rules via a consultation procedure, as the official said. "We will make the draft guidelines as well as will circulate those throughout any potential applicants as well as call a consultative meeting." When questioned if Tesla would get an invitation to the second consultative meeting, he said, "We will invite everyone, anybody wants to come is welcome."
He claims that eligible enterprises under the SPMEPCI may be exempt from import charges if they invest USD 500 million in greenfield projects. The written letter to the scheme dated March 15 said, "The government will be opening the window and publishing its guidelines within 120 days or more."Consequently, beginning on July 31 or later, the window will remain open for at least 120 days.
Businesses may apply for as long as the window is open. According to a top official, firms will submit applications, which we will assess. The official said that when Vinfast asked whether their prior investments would be included, the government said they wouldn't. They said that until the strategy is made public, they will not make any further investments in that scenario.
The official responded, "Okay," making it clear that there are no commitments and that the plan would only take the actual contribution into account. He stressed that while the program is just for five years, the possibility could become available again in the future. The official said that automakers will get an eligibility certificate from the government upon applying for the program, in accordance with the regulations.
"All of the PLI auto scheme's criteria must be followed. As to the official statement, investment comprises preparing assets, infrastructure, and equipment for invoicing. He was clear that the assets did not always need to be on the company's land, even though they should be owned by the business. According to the source, royalties would not count as investments under the terms of the scheme.
"Technology import royalty will not be considered an investment." The insider said that based on discussions from the first meetings, Bosch had an issue with it. According to the new policy, companies will be able to import a limited number of cars at a reduced customs/import duty of 15% on vehicles costing USD 35,000 or more for a period of five years starting from the date the government issues the approval letter. This is provided to businesses that establish EV passenger car manufacturing facilities in India together with a minimum investment of Rs 4,150 crore (USD 500 million).
The production facilities must start up within three years of the date the clearance letter was sent, according to a requirement from the Ministry of Heavy Industries. The facilities also need to achieve a minimum domestic value addition (DVA) of twenty-five percent within the same time period, including a minimum DVA of fifty percent within five years of the date the permission letter was given.
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