Govt. Of India To Issue New EV Draft Guidelines For Manufacturers

As the Government of India gears up to introduce its new EV policy under the Scheme to Promote Manufacturing of Electric Passenger Cars In India (SPMEPCI) that it announced on March 15, it is all set to finalise the new draft guidelines. The Ministry of Heavy Industries is already slated to meet stakeholders within a couple of months to finalise the EV policy. 

The main focus of the upcoming EV policy will be to reduce incentives for foreign EV manufacturers to set up local manufacturing plants, using local resources. Additionally, if the price of the EV car is and $35,000 (which is roughly ₹29 lakh), then import cost will be reduced by 15 per cent. 

But the major condition for foreign EV manufacturers will be to commit to an investment worth ₹4,150 crore over five years. Responding to this condition, Vietnam-based EV start-up, VinFast was the first foreign company to enter India and set up a facility in Tamil Nadu, construction for which has already started. 

(Also Read: Indian Government To Set Up Task Force To Drive EV Adoption)

When Will The New EV Policy Be Passed?

The first round of discussion between the Centre and EV makers, including representatives from Tesla, have already already been conducted in April. The next meeting with the draft guidelines will take place before July-end. The Centre has also sent applications to EV makers to claim benefits from the new EV policy. The application window for EV manufacturers is slated to open from July 31 or later. Post which manufacturers will have 120 days to file their applications. The new policy will be passed when the FY2024 financial budget will be announced once the new government is formed post the 2024 union election.