India drafts new EV policy; same for all companies
ECONOMY & POLICY

India drafts new EV policy; same for all companies

Amitabh Kant, Sherpa, G20, emphasised the need for a uniform EV policy applicable to all companies in India, asserting that the country will not alter its policy to cater to specific corporate demands. This statement comes amid speculations that Tesla had made particular requests to the Indian government, leading to its decision not to enter the Indian market despite an anticipated visit by the CEO in April.

Kant stated, "India has drafted an EV policy, and all companies must adhere to it. You can't have policies for individual companies." He reiterated that the policy, which includes incentives for setting up manufacturing units, sets a minimum investment threshold of Rs 41.50 billion and mandates that by the third year, at least 25% of the parts used must be sourced domestically, increasing to 50% by the fifth year.

Under the new policy, companies establishing manufacturing facilities in India for EV passenger cars can import a limited number of cars at a lower customs duty of 15% on vehicles costing $35,000 and above for five years from the approval date. The total number of EVs allowed for import is capped based on the investment, or a maximum value of Rs 64.84 billion, whichever is lower. If the investment exceeds $800 million, a maximum of 40,000 EVs can be imported, with a limit of 8,000 per year, and unused import limits can be carried over.

Kant highlighted the ongoing transformations in the automotive industry driven by the global shift towards sustainable transportation. He noted, "There is a huge disruption taking place, and it's important to accelerate the pace of electric vehicles, especially in two-wheelers and three-wheelers, which account for about 75% of our vehicles. The government has allocated Rs 576.13 billion for procuring 10,000 electric buses."

Kant anticipates these investments will significantly boost the manufacturing of electric two-wheelers, three-wheelers, and buses, furthering India's transition to sustainable transportation.

(Source: ANI & ET Energy)

Amitabh Kant, Sherpa, G20, emphasised the need for a uniform EV policy applicable to all companies in India, asserting that the country will not alter its policy to cater to specific corporate demands. This statement comes amid speculations that Tesla had made particular requests to the Indian government, leading to its decision not to enter the Indian market despite an anticipated visit by the CEO in April. Kant stated, India has drafted an EV policy, and all companies must adhere to it. You can't have policies for individual companies. He reiterated that the policy, which includes incentives for setting up manufacturing units, sets a minimum investment threshold of Rs 41.50 billion and mandates that by the third year, at least 25% of the parts used must be sourced domestically, increasing to 50% by the fifth year. Under the new policy, companies establishing manufacturing facilities in India for EV passenger cars can import a limited number of cars at a lower customs duty of 15% on vehicles costing $35,000 and above for five years from the approval date. The total number of EVs allowed for import is capped based on the investment, or a maximum value of Rs 64.84 billion, whichever is lower. If the investment exceeds $800 million, a maximum of 40,000 EVs can be imported, with a limit of 8,000 per year, and unused import limits can be carried over. Kant highlighted the ongoing transformations in the automotive industry driven by the global shift towards sustainable transportation. He noted, There is a huge disruption taking place, and it's important to accelerate the pace of electric vehicles, especially in two-wheelers and three-wheelers, which account for about 75% of our vehicles. The government has allocated Rs 576.13 billion for procuring 10,000 electric buses. Kant anticipates these investments will significantly boost the manufacturing of electric two-wheelers, three-wheelers, and buses, furthering India's transition to sustainable transportation. (Source: ANI & ET Energy)

Next Story
Real Estate

GHMC Launches Drive To Boost Property Tax Revenue

The Greater Hyderabad Municipal Corporation (GHMC) has launched a special campaign to enhance property tax revenue from non-residential and commercial properties by reassessing their total built-up area. Any discrepancies identified during inspections will trigger immediate revision of both property tax and trade licence fees, officials said. The initial phase of the drive focuses on shopping malls across Hyderabad, with over 300 such establishments identified in the twin cities. After the mall inspections, GHMC will extend the verification process to other non-residential properties, includi..

Next Story
Infrastructure Urban

Cholamandalam To Raise Rs 10 Billion Via NCD Issue

Cholamandalam Investment and Finance Company has invited bids to raise up to Rs 10 billion through secured non-convertible debentures (NCDs) maturing on 14 October 2030, offering a coupon rate of 7.58 per cent. The NCD issue, announced on Monday, comes at a time when corporate bond activity — which saw strong momentum in the first quarter of FY26 — has slowed during the second quarter owing to rising borrowing costs. However, market analysts anticipate a rebound in the coming months as easing bond yields could reignite investor appetite for corporate debt instruments. The company’s fu..

Next Story
Infrastructure Urban

Maharashtra Approves Cluster Redevelopment For Mumbai Slums

The Maharashtra cabinet has approved a cluster redevelopment scheme for Mumbai’s slums, paving the way for large-scale urban renewal and improved living standards across the city’s informal settlements. The decision, taken on 7 October, seeks to convert slum clusters spread over more than 50 acres into integrated housing projects equipped with modern infrastructure and better amenities. To be implemented by the Slum Rehabilitation Authority (SRA), the initiative aims to accelerate redevelopment, attract private investment, and stimulate construction activity. According to a statement from..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?