Context:
Recently, Government approved E-Vehicle policy to promote India as a manufacturing destination for e-vehicles
Electric Vehicle (EV) Policy:
- Aim – To attract investments in e-vehicle space by reputed global EV manufacturers
- Ministry – Ministry of Heavy industries
Key Features of the Policy:
- Government lowers import taxes for companies that commit minimum investment required Rs 4150 Cr
- No limit on maximum Investment
- Timeline – 3 years for setting up manufacturing facilities and start commercial production
- Domestic value addition (DVA) – Need to achieve a localization level of 25% by the 3rd year and 50% by the 5th year
- Customs duty – 15% as applicable to CKD units for a period of 5 years
- Vehicle of CIF (Cost, Insurance, and Freight) value of USD 35,000 or above are permissible
- Not more than 8,000 EVs per year would be permissible for import
- Carryover of unutilized annual import limits would be permitted
- Investment commitment will have to be backed up by a bank guarantee in lieu of the custom duty forgone
- Bank guarantee will be invoked in case of non-achievement of DVA and minimum investment
Related articles: Electrified Flex Fuel Vehicles, Electric Batteries
Source: PIB
Previous Year Question
About three-fourths of world’s cobalt, a metal required for the manufacture of batteries for electric motor vehicles, is produced by
[UPSC Civil Services Exam – 2023 Prelims]
(a)Argentina
(b) Botswana
(d) Democratic Republic of the Congo
(c) Kazakhstan
Answer: (c)
