India’s automotive sector is rapidly growing, with significant potential for electric vehicles (EVs) to lead the market. The government has introduced various initiatives like FAME and PLI schemes to promote EV adoption.
Objective: To position India as a global hub for manufacturing electric passenger cars, fostering employment, and advancing the “Make in India” initiative.
Key Highlights:
- Minimum investment of Rs. 4,150 crores for setting up e4W manufacturing facilities.
- Facilities must achieve a Domestic Value Addition (DVA) of 25% within 3 years and 50% within 5 years.
- Reduced customs duty of 15% for importing e4Ws, linked to investment commitments.
- Maximum duty foregone capped at Rs. 6,484 crore
- A Bank guarantee is required to ensure investment and DVA targets are met.
Eligibility:
- Applicant companies or their group companies must meet revenue and investment criteria.
- Approved applicants must make new investments.
- Minimum domestic investment commitment of Rs. 4,150 crores within 3 years.
Application Process:
- Applications are accepted online via a portal managed by the Project Management Agency (PMA).
- Submission of audited financial statements and supporting documents is required.
- A non-refundable application fee is applicable.
Approval and Monitoring:
- Scheme approval is processed within 120 days of application.
- The Scheme Sanctioning Committee (SSC) oversees implementation and addresses challenges.
- Regular reviews ensure scheme progress and performance.
Residual Provisions:
- Selected applicants are prohibited from diluting shareholding during scheme tenure.
- Transactions with related parties are subject to regulations, with integrity compliance mandatory.
Conclusion: The scheme endeavours to propel India’s EV manufacturing sector, attract investments, and ensure adherence to targets through robust oversight.
For more details, you can access the official notification from here.
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