Context:
Ministry of Heavy Industries Notifies Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI)
Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI):
- Objective –
- Promote domestic production of electric passenger cars (e-4W) in India.
- Position India as a leading global center for automotive innovation and manufacturing.
- Eligible Projects –
- Investments in new plant, machinery, charging infrastructure, equipment, and associated utilities.
- Expenditure on second-hand/refurbished machinery will not qualify.
- Eligibility Criteria –
- Global Group Revenue (from automotive manufacturing): Minimum ₹10,000 crore (latest audited).
- Global Investment in Fixed Assets: Minimum ₹3,000 crore (latest audited).
- Group Company Definition: Entities with at least 26% voting rights in each other.
- Benefits for Applicants –
- Customs Duty Concessions: Up to 5 years, linked to domestic value addition (DVA) milestones.
- Import Benefits: Import of fully-built electric cars or CBUs (completely assembled vehicles) under specific conditions.
- Applicant Obligations –
- Approved applicants must establish an e-4W manufacturing facility in India within 3 years of approval.
- Minimum Investment: ₹4,150 crore.
- DVA Targets: At least 25% DVA within 3 years, 50% within 5 years.
- Mandatory Bank Guarantee: Backed by a scheduled commercial bank in India, ensuring commitment to setting up facilities and achieving DVA.
India’s Automotive Sector:
- 3rd-largest automobile market in the world.
- Contributes 7.1% to India’s GDP.
- India has the potential to lead the global transition from ICE vehicles to EVs, with an expected 50% growth.
Source: PIB
Previous Year Question
Consider the following statements:
1. Gujarat has the largest solar park in India.
2. Kerala has a fully solar powered International Airport.
3. Goa has the largest floating solar photovoltaic project in India.
Which of the statements given above is/are correct?
[UPSC Civil Services Exam – 2022 Prelims]
(a) 1 and 2
(b) 2 only
(c) 1 and 3
(d) 3 only
Answer: (b)
Explanation:
India’s Bhadla Solar Park in Rajasthan is the largest solar power park in the world.