The Government of India has approved an Electric Vehicle (EV) Policy to promote the EV sector.
The policy aims to attract global EV manufacturers to invest in India's e-vehicle market.
Companies looking to produce EVs must invest a minimum of Rs 4,150 crore.
The manufacturing facilities must be set up within three years.
Companies must achieve 50% Domestic Value Addition (DVA) within five years.
They can import limited vehicles at a reduced customs duty rate.
A bank guarantee is required to back up investment commitments.
The bank guarantee will be required in the event of non-achievement of DVA.
Duty concessions on imported EVs will be restricted to the investment made or Rs 6,484 crore.
This policy is a significant step toward achieving India's e-mobility goals.