Scheme to Promote Manufacturing of Electric Passenger Cars in India(SPMEPCI)

The Union Ministry of Heavy Industries (MHI) has issued notification regarding detailed guidelines for the “Scheme to Promote Manufacturing of Electric Passenger Cars in India” (SPMEPCI).

• The Scheme shall help to attract investments from global EV manufacturers and promote India as a manufacturing destination for e-vehicles.

• The Scheme will also help put India on the global map for manufacturing of EVs, generate employment and achieve the goal of “Make in India”.

• Under the scheme, approved companies will be allowed to import a limited number of completely built electric four-wheelers (e-4W) at a reduced customs duty rate of 15 per cent for a period of five years.

• These imports must meet a minimum cost, insurance and freight (CIF) value of USD 35,000 per unit. The concession is capped at 8,000 units per year, with the flexibility to carry forward unused quotas.

• However, the total duty foregone will be limited to either Rs 6,484 crore or the actual investment made by the applicant, whichever is lower.

• To qualify for above benefits, applicants must commit to a minimum investment of Rs 4,150 crore within three years of receiving approval.