India’s E-Vehicle Policy: Key Highlights
Kartavya Desk Staff
#### Facts for Prelims (FFP)
Source: PIB
Context: The Union Government has approved an E-Vehicle policy aimed at positioning India as a manufacturing hub for electric vehicles (EVs) with cutting-edge technology.
Aspect | Details
Policy Objective | Promote India as a manufacturing destination for electric vehicles (EVs) with advanced technology
Implementation | The Project Management Agency (PMA) will be responsible for providing secretarial, managerial and implementation support and carrying out other responsibilities as assigned by the Government of India (GoI)
Ministry | Ministry of Heavy Industries
Eligibility Criteria | Minimum Investment Requirement: Rs 4150 Cr (approximately USD 500 Mn)
Maximum Investment: No cap on maximum investment
Manufacturing Timeline: Set up manufacturing facilities within 3 years
Domestic Value Addition (DVA) criteria during manufacturing: 25% within a period of 3 years, and 50% within 5 years from the date of issuance of approval letter by the Ministry of Heavy Industries/ PMA
The Bank guarantee will be returned only when 50% DVA is attained an investment of at least Rs 4,150 crore has been made, or to the extent of duty foregone in 5 years, whichever is higher.
Performance Criteria: All electric passenger vehicles shall meet the performance criteria of the Production Linked Incentive (PLI) Auto scheme.
Tenure of the Policy | 5 years or as notified by GoI.
Key Benefits | Encourages technological advancements in EV manufacturing; Fosters Make in India initiative; Promotes healthy competition among EV players; Reduces crude oil imports and trade deficit; Mitigates air pollution, particularly in urban areas; Positive impact on health and environment
Other Initiatives to Promote EV | Faster Adoption and Manufacturing of EVs (FAME) India scheme: Phase I was launched in 2015 and Phase II was launched in 2019.
EV 30@30 initiative for the deployment of EVs and target at least 30 per cent of new EV sales by 2030
PLI Scheme for Automobile and Automotive Components (PLI-Auto) in 2021, as financial incentives to promote domestic manufacturing and draw investments into the value chain of the automotive manufacturing industry.