Centre Notifies Guidelines to Boost Electric Car Manufacturing in India

Central Government notified detailed guidelines for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI). The scheme is aimed at attracting global EV makers to invest in India by offering concessional customs duty and support for both greenfield and brownfield manufacturing investments. This move comes on the same day Union Minister H.D. Kumaraswamy disclosed that Tesla is currently not interested in manufacturing cars in India, but only in opening showrooms.

Why in News?

The Ministry of Heavy Industries formally notified the SPMEPCI guidelines to promote domestic EV manufacturing. The announcement comes amid Tesla’s disinterest in setting up manufacturing facilities in India, as stated by Union Minister H.D. Kumaraswamy.

Key Features of the Scheme

  • Scheme Name: Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI)
  • Incentive: Reduced customs duty of 15% on CBUs (Completely Built Units) with CIF value of $35,000 or more.
  • Validity: 5 years from the approval date of the application.
  • Import Cap: Up to 8,000 EVs per year at concessional duty, with rollover allowed for unutilized quota.
  • Application Notice: To be issued shortly.

Policy Changes from 2024

  • Earlier limited to greenfield investments only.
  • Now brownfield investments (expansion of existing plants) are also allowed, addressing objections by Indian manufacturers like Tata Motors and Maruti Suzuki.

Objectives

  • Encourage global carmakers to establish manufacturing units in India.
  • Boost domestic EV production, reduce carbon emissions, and promote clean mobility.
  • Make India a global EV manufacturing hub.

Background Context

  • The government announced its EV import policy in March 2024.
  • This is part of India’s broader agenda to achieve net-zero emissions by 2070 and reduce dependency on fossil fuels.

Static/General Facts

  • Union Minister for Heavy Industries: H.D. Kumaraswamy
  • Tesla: A U.S.-based EV giant led by Elon Musk.
  • CIF (Cost Insurance Freight): Total cost including transportation and insurance to bring goods to port.
Summary/Static Details
Why in the news? Centre Notifies Guidelines to Boost Electric Car Manufacturing in India
Scheme Name SPMEPCI – Scheme to Promote Manufacturing of Electric Passenger Cars in India
Key Incentive 15% import duty on CBUs valued ≥ $35,000
Import Cap 8,000 units/year (carry forward allowed)
Investment Type Allowed Both greenfield and brownfield
Minister’s Remark on Tesla Not interested in manufacturing, only in showrooms
Objective Promote EV production, attract FDI, reduce emissions

Shivam

Recent Posts

The Forgotten Story of Tamils in Moreh: How Manipur Border Town Became Home to Tamil Diaspora

A brief yet poignant scene in the hit series Family Man 3 has opened a…

5 hours ago

Which Country is Known as the Land of Festivals?

India is often called the Land of Festivals because it celebrates countless festivals throughout the…

6 hours ago

Simone Tata: The Visionary Behind Lakmé and Westside Passes Away at 95

Simone Tata, a transformative figure in India’s business landscape and the step-mother of Ratan Tata,…

8 hours ago

When was IndiGo Airlines Founded and Who Founded It?

IndiGo Airlines is one of India’s most popular and trusted airlines. It is known for…

8 hours ago

Which Country is Known as Deutschland?

Many countries have different names in different languages. One such country is Germany, which is…

8 hours ago

Which River is Known as the Lifeline of Northeast India?

Northeast India is a region full of beautiful landscapes, green forests and rich culture. A…

8 hours ago