Scheme to Promote Manufacturing of Electric Passenger Cars in India

Objectives

Salient Features

• To attract investments from global EV manufacturers and promote India as a manufacturing destination for e-vehicles. 
• The scheme will also help put India on the global map for manufacturing of EVs, generate employment and achieve the goal of "Make in India".

• Ministry: Ministry of Heavy Industries (MHI).
• Implementation: Project Management Agency (PMA).
  • PMA refers to the financial institution(s) or any other authority(ies) appointed by GoI to act on its behalf.
• Tenure: 5 years or as notified.
• Eligible Investments: Expenditure incurred on new Plant, Machinery, Charging Infrastructure, and Equipment and associated utilities across India. 
  • Expenditure made on second hand/ refurbished plant, machinery etc., will not qualify.
• Eligibility: The applicant or its group companies must meet the following criteria to qualify for benefits under the scheme:
  • The global revenue from automotive manufacturing must be at least ₹10,000 crore, as per the latest audited financial statements.
  • The company or its group must have a global fixed asset investment (gross block) of at least ₹3,000 crore.
  • The minimum investment commitment in India over 3 years must be ₹4,150 crore (approx. USD 500 million).
    • There is no upper limit on investment commitment in India.
  • The company must achieve at least 25% domestic value addition within 3 years.
    • It must further achieve 50% domestic value addition within 5 years from the date of approval.
  • The applicant's commitment to setup manufacturing facilities and achievement of Domestic Value Addition (DVA) shall be backed by a bank guarantee from a scheduled commercial bank in India.
• Performance Criteria: All electric passenger vehicles shall meet the performance criteria of Production Linked Incentive (PLI) Auto scheme.
• Benefits:
  • The applicant will be allowed to import Completely Built-in Unit (CBUs) of e-4W manufactured by them at a reduced customs duty of 15% subject to the conditions as per this Scheme.
    • CBU is a vehicle that is in a completely assembled form.
    • The maximum number of e-4W allowed to be imported at the aforesaid reduced duty rate shall be capped at 8,000 numbers per year.
  • The lower customs duty of 15% would be applicable for a total period of 5 years.