The government is continuing to work on detailed guidelines for the E-vehicle policy that was announced earlier this year to promote India as a EV manufacturing destination but there is no word yet from US car major Tesla on its India plans, sources have said.
“One round of stakeholder discussions by the Ministry of Heavy Industries is over and a second one is now likely,” a source tracking the matter said on Friday.
Automobile companies in India can apply under the policy to seek incentives by committing to the required investments, the source clarified. “They can apply under the new policy for an import license for a certain number of EVs and in order to qualify, they will have to commit to us the investments,” he said.
The first round of consultations on EV policy guidelines took place last month just before Tesla CEO Elon Musk’s proposed visit to India which was eventually postponed.
“Tesla is silent (on its India plans)...But the EV policy is meant for everybody,” the source said.
The guidelines will provide more clarity on the rules guiding investments in EV manufacturing in the country. It will include information about applications, portal links and the project monitoring agency (PMA).
Customs duty
Per the EV policy, a sharply reduced customs duty of 15 per cent would be applicable on vehicle of minimum CIF value of $35,000 and above for a total period of 5 years subject to the manufacturer setting up manufacturing facilities in India within a 3-year period.
At present, cars imported as completely built units (CBUs) attract customs duty ranging from 70 per cent to 100 per cent, depending on the engine size and cost, insurance and freight (CIF) value.
The duty foregone on the total number of electrical vehciles allowed for import would be limited to the investment made or ₹6,484 crore (equal to incentive under PLI scheme), whichever is lower, according to the policy.
A maximum of 40,000 EVs at the rate of not more than 8,000 per year would be permissible if the investment is of $800 million or more. The carryover of unutilised annual import limits would be permitted.