The Ministry of Heavy Industries (MHI), notified the “Scheme to Promote Manufacturing of Electric Passenger Cars in India” with the aim to attract investments from global EV manufacturers and promote India as a global manufacturing destination for e-vehicles. This Scheme will be valid for a period of five years or as notified by the Indian government.
Some of the key highlights of the said Scheme are as follows:
- A minimum investment of INR 41.50 billion (USD 500 million) for manufacturing electric passenger cars. There will be no cap on maximum investment.
- The manufacturing facility(ies) shall be made operational within three years from the date of issuance of the approval letter by the MHI.
- The applicant shall achieve a Minimum Domestic value addition (DVA) of 25% by the 3rd year and 50% by the 5th year.