Based on inputs from the auto industry, the ministry of heavy industries is expected to release a fresh set of FAQs before it invites applications from prospective investors. The ministry has already held consultations with industry representatives. The new EV policy announced by govt ahead of polls sought to target vehicles that cost upwards of USD 35,000 and allowed import of up to 26,000 units annually if the company committed to invest INR 4,150 crore in setting up a manufacturing facility. A govt official said existing players or those who have already committed to invest in India need not set up subsidiaries to route their investment but can do so through fresh investments.
"Investment has to be a green field. The company doesn't have to be greenfield," the official said.
Companies that had started investing in the EV ecosystem before the announcement of the policy are also eligible for incentives. "What matters is when they start spending money. It is not that they would have invested much so far. Whatever they invest theoretically is legit," the official added.
The policy had sought to strike a balance to ensure that domestic players such as Mahindra & Mahindra and Tata Motors, which have lined up ambitious EV plans, are not impacted by imports. At the same time, the focus was on seeking to get companies such as Tesla and its value chain to invest in India as localisation norms are also part of the policy.
While the prime focus appeared to be Tesla, its founder Elon Musk decided to postpone his India trip, which included a meeting with PM Narendra Modi, citing his commitments. A few days later he flew to China, raising questions about the company's intent to invest in India.
Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
