Compared to the past, the use of electric vehicles has increased in recent times. people are becoming more enthusiastic about them. Accordingly, vehicle sales are increasing. Meanwhile, the central government is announcing huge incentives for companies manufacturing EV vehicles domestically. It has announced that relief from duties will be given depending on the size of the investment made for the production of EV vehicles. The relevant EV policy guidelines have been notified. Currently, duties of 70 - 100 percent are being imposed on the import of EV vehicles. However, there are different conditions in the latest policy. In the new EV policy, if an investment of Rs. 4150 crore is made for the manufacture of four-wheeler vehicles, up to 8,000 vehicles will be allowed to be imported with a minimum duty of 15 percent. It was revealed that the maximum duty exemption will be up to Rs. 6484 crore.
Otherwise, there is a condition for this. That is, the companies that have been approved for the production of EV vehicles will have to start the operations of the manufacturing plants within three years. The rules related to this have been recently announced. Responding positively to this policy, it is said that the application process will start soon. It was revealed that the application process will be in effect for 120 days. Investment-based benefits will be available under the scheme for the costs of setting up a plant. Machinery and equipment etc. However, the cost of acquiring land will not be considered as an expense.
However, these benefits will be made applicable to groups with an international income of Rs. 10,000 crore for automotive manufacturing. The condition has been set that the domestic value added in the first three years of car manufacturing should be at least 25 percent, and this should be increased to 50 percent in five years. The expenditure on charging infrastructure is also considered an investment. That is, these subsidies announced to enable the production of EV cars in india will allow the respective companies to import their products. And, it must be said that it has now become interesting to see which companies will come forward to produce EV cars in India.
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Sowmiya Sriram

03/06/2025 01:29 PM