Union government has rolled out an e-vehicle policy to encourage and boost domestic manufacturing of e-vehicles. The policy is aimed at attracting investments in e-vehicle space.
The policy will allow Indian consumers access to latest technology while ensuring Make in India initiative. By promoting healthy competition among EV players, the policy aims to enhance volume of production and economies of scale. It also aims to reduce imports of crude Oil, lower trade deficit and reduce air pollution.
While the companies will be required to make a minimum investment of 4,150 Crore Rupees, no cap has been set on maximum Investment. The companies will have 3 years for setting up manufacturing facilities and start commercial production of e-vehicles.
Not more than 8,000 EVs per year would be permissible for import under this scheme. The Investment commitment made by the company will have to be backed up by a bank guarantee in lieu of the custom duty forgone.