Funding in creation of bodily infrastructure reminiscent of plant and equipment, charging stations, and property developed or acquired by corporations will qualify for getting sops underneath the Scheme for Manufacturing of Electrical Vehicles (SMEC). Royalty funds made to abroad mum or dad corporations won’t be thought of as an eligible funding wanted underneath the scheme, senior officers instructed ET.
SMEC is geared toward incentivising investments in establishing electrical automobile (EV) manufacturing capability by reducing import duties on a choose variety of automobiles. Beneath the brand new EV coverage, introduced in March 2024, beneficiaries want to take a position USD 500 million for establishing electrical automobile manufacturing amenities. In addition they must adjust to as much as 50% minimal home worth addition dedication.
As an incentive, the centre will levy concessional import duties on automobiles being imported by corporations qualifying underneath the scheme.
“Gamers interested by availing advantages underneath the SMEC have been searching for readability on the definition of funding in the course of the consultations held in April this yr,” a senior official mentioned whereas including that one other spherical of discussions with events will probably be held in a month.
“Certified funding will probably be thought of as cash spent in establishing plant and equipment, charging infrastructure, and property owned by firm however not its premises,” the official mentioned. Apart from these, as much as 10% of the constructing price can be billed as funding made in establishing EV making capability.
“The property ought to be acquired and on the books of the corporate searching for incentives,” he added.
These consultations have been attended by a number of world and native corporations on India’s latest electrical automobiles manufacturing coverage targeted on excessive finish automobiles. The deliberations are being held earlier than pointers are to be firmed up by the Ministry of Heavy Industries.
Elon Musk’s Tesla was represented by its advisor, The Asia Group (TAG) India within the earlier assembly. Representatives of Vietnam’s VinFAST, which is establishing an EV plant in Tamil Nadu joined the assembly via video hyperlink.
Different contributors included Indian automobile makers like Tata Motors, Maruti Suzuki, and Mahindra & Mahindra. World automotive giants like Hyundai, BMW, Kia, Volkswagen, Mercedes, Toyota, and Renault-Nissan additionally took half.
. The scheme aims to boost electric vehicle manufacturing by lowering import duties on select vehicles. Companies must invest USD 500 million and comply with a 50% domestic value addition commitment to qualify. Discussions with interested parties are ongoing to clarify eligible investments. Global and local companies, including Tesla, VinFAST, Tata Motors, and Hyundai, are involved in shaping the new policy.){kind=link}