India will strengthen monitoring on EV investments: Report

Existing enterprises in India do not need to form a new subsidiary to apply under the new regulation. They have to make investments in order to be eligible to apply for an import license for a certain quantity of EVs.

Information on the project monitoring agency and portal links will be included in the soon-to-be released rules.

According to a government source who spoke with The Economic Times, India plans to provide more investment recommendations in accordance with the electric vehicle (EV) policy that was unveiled in March. Applications from automakers with headquarters in nations like China that border India on land would be subject to "much more onerous scrutiny." But according to the official, businesses that are already based in India won't have to form new subsidiaries in order to qualify for the program.

This comes after Elon Musk, the CEO of Tesla, decided against going to India in April as planned. Under the new EV policy, Tesla has not yet informed the Indian government of its intentions. Musk abruptly canceled his trip to India, where he was supposed to be visiting between April 21 and 22, citing "very heavy Tesla obligations." A week later, he unexpectedly traveled to China, where he had meetings with senior leaders.

"They (Tesla) are just quiet. Everybody was always intended to benefit from the (EV) program, the insider told ET. "The companies announce the commercial decisions."

Information on the project monitoring agency and portal links will be included in the soon-to-be released rules. Existing enterprises in India do not need to form a new subsidiary to apply under the new regulation. They have to make investments in order to be eligible to apply for an import license for a certain quantity of EVs.

The first round of EV policy discussions was held last month by the Ministry of Heavy Industries. The program, which was approved on March 15, provides duty exemptions to businesses that establish manufacturing facilities in India with a $500 million minimum investment. These businesses must reach 50% domestic value addition (DVA) within five years after setting up manufacturing facilities and starting EV commercial production, which will take three years to complete.

Furthermore, for a period of five years, manufacturers of passenger electric vehicles (EVs) would be able to import a restricted quantity of automobiles at a reduced import tariff of 15% on vehicles valued at $35,000 and higher.