The central government has introduced a new policy to boost the electric vehicles (EV) industry, in which foreign companies have been given a big relief. Now if a foreign automobile company sets up a manufacturing unit in india and invests up to Rs 4,150 crore, then it will have to pay only 15% import duty on the import of electric cars. At present, electric vehicles coming from abroad fully prepared in the country attract import duty of 70% to 100%, which makes them out of the reach of common people. With this new initiative of the government, it is expected that foreign EV brands will enter the indian market rapidly and local production will be promoted in the country.
What are the special features of this scheme?
15% import duty exemption: Under the scheme, companies will be allowed to bring 8,000 completely built (CBU) electric cars to india every year at only 15% duty. But this exemption will be given only to those companies who will invest in India.
Exemption on cars worth at least $35,000: This relief will be given only to those cars whose price is at least 35,000 US dollars (about 29 lakh rupees). Exemption will be available for 5 years: Under this scheme, companies will get this exemption for five years. But during this time they will have to start manufacturing in India.
Investment has to be completed in 3 years: Companies will have to complete the investment work within 3 years of the application being approved. Condition of global revenue: Only those companies will be able to take advantage of this scheme whose global revenue is at least Rs 10,000 crore.
Process from application to setting up the plant
The government will soon start the application process for this scheme. The application window will remain open for about 120 days. Companies will have to deposit an application fee of Rs 5 lakh. The deadline to start the plant will also be three years after the application is approved.
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