Lok Sabha Question No. 639 (UNSTARRED), answered on 2024-07-25
Subject: e-Vehicle Policy
Ministry: ROAD TRANSPORT AND HIGHWAYS
Asked by: Dr. C M Ramesh

## GOVERNMENT OF INDIA MINISTRY OF ROAD TRANSPORT AND HIGHWAYS

## LOK SABHA UNSTARRED QUESTION NO. 639

ANSWERED ON 25 th  JULY, 2024

## E-VEHICLE POLICY

639. SHRI C M RAMESH:

## Will the Minister of ROAD TRANSPORT AND HIGHWAYS

सड़क परिवहन औि िाजमार्ग मंत्री

be pleased to state:

- (a) whether the Government has recently approved e-vehicle policy for the country and if so, the aims and objectives of the Policy;
- (b)  the  details  of  concessions  for  domestic  investors  and  foreign investors under the said policy;
- (c) the extent to which the said policy will help to make India an EV manufacturing hub; and
- (d) the percentage of domestic value addition made compulsory for EV manufacturers under this policy?

## ANSWER

THE MINISTER OF ROAD TRANSPORT AND HIGHWAYS

(SHRI NITIN JAIRAM GADKARI)

(a) and (c)     Ministry  of  Heavy  Industries  has  notified  a  Scheme namely  'Scheme  to  Promote  Manufacturing  of  Electric  Passenger Cars in India' (SPMEPCI) on 15.03.2024 to attract investment from global  EV  manufactures  and  promote  India  as  a  manufacturing destination for e-vehicles.

- (b) (i) Under the SPMEPCI scheme, the applicants are allowed to  import  Completely  Built-in  Unit  (CBU)  of  e-4W  manufactured  by them at a reduced customs duty of 15% subject to the conditions as per this Scheme.
- (ii) Under this scheme,  EV  passenger  cars (e-4W) can initially be imported with a minimum Cost, Insurance & Freight (CIF) value of USD 35,000 at a duty rate of 15% for a period of 5 years from the date of issuance of approval letter by Ministry of Heavy Industries. The maximum number of e-4W allowed to be imported per year at the aforesaid reduced duty rate shall be capped at 8000. The carryover of unutilized annual import limits would be permitted.
- (iii) The maximum number of EVs to be imported under this Scheme  shall  be  such  that  the  total  duty  foregone  will  be limited to the lower of the following:
1. The maximum duty foregone per applicant (limited to Rs. 6,484 crore) or,
2. Committed investment of the applicant (in crore).
- (d) The applicant company or its Group of company (ies) will need to  meet  the  following  common  criteria  to  qualify  and  receive benefits under the scheme:-

| Eligibility Criteria                                                                                                                  | Auto Original Equipment Manufacturer (OEM)   |
|---------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------|
| Global group Revenue (from automotive manufacturing), based on latest audited annual financial statements at the time of application. | Minimum Rs. 10,000 crore                     |
| Investment, based on the                                                                                                              | Global Investment of                         |

| latest audited annual financial statements at the time of application   | Company or its Group at Company(ies) in fixed assets (gross block) of Rs. 3,000 crore                                                                                               |
|-------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Minimum Investment Commitment in India during a 3-year window           | Rs. 4,150 crore                                                                                                                                                                     |
| Maximum Investment Commitment in India during a 3-year window           | No limit                                                                                                                                                                            |
| Domestic value addition criteria during manufacturing                   | 25% to be achieved within 3 years and 50% to be achieved within 5 years from date of issuance of approval letter by Ministry of Heavy Industries / Project Management Agency (PMA). |

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