Govt kickstarts new EV policy

New Delhi: The government on Friday approved an electric-vehicle (EV) policy, under which duty concessions will be given to companies setting up manufacturing units in the country with a minimum investment of $500 million, a move aimed at attracting major global players like US-based Tesla. According to an official statement, the companies setting up manufacturing facilities for e-vehicles will be allowed to import a limited number of cars at lower customs duty. The policy seeks to promote India as a manufacturing destination for EVs and attract investment from reputed global EV manufacturers, it added.

Under the policy, a company will be required to make a minimum investment of $500 million or Rs4,150 crore. There will be no upper investment limit.

“The duty foregone on the total number of EVs allowed for import would be limited to the investment made or Rs6,484 crore (equal to incentive under PLI scheme) whichever is lower. A maximum of 40,000 EVs at the rate of not more than 8,000 per year would be permissible if the investment is $800 million or more.