VinFast's Rs 16 Billion EV Plant Not Eligible for Incentives
ECONOMY & POLICY

VinFast's Rs 16 Billion EV Plant Not Eligible for Incentives

Vietnam-based electric vehicle (EV) maker VinFast’s Rs 160 billion (USD 2 billion) investment in Tamil Nadu will not qualify for benefits under India’s recently launched Scheme to Promote Manufacturing of Electric Passenger Cars, officials confirmed on Monday.

The government clarified that to be eligible for incentives, investments must be capitalised only after formal approval under the scheme. Existing capital expenditures—such as VinFast’s ongoing work in Thoothukudi—do not meet the criteria, as the equipment and machinery must be put to use post-approval.

“They have already capitalised their investment and will not qualify under the current terms,” said an official, adding that VinFast would need to make a fresh investment of Rs 4.15 billion to become eligible. The company had appealed for consideration of its existing investment but the request was declined.

VinFast, a subsidiary of Vingroup, is preparing to launch its VF6 and VF7 models in India ahead of the upcoming festive season and plans to scale up local production to 150,000 EVs annually, targeting exports to the Middle East and Africa. It is also exploring expansion into Andhra Pradesh and Telangana.

As per the scheme guidelines notified on 15 March 2024, approved applicants will be allowed to import completely built electric cars (CBUs) with a minimum CIF value of USD 35,000 at a reduced customs duty of 15 per cent for a period of five years from the date of approval. The scheme mandates a minimum investment of Rs 4.15 billion by each applicant.

The application window for the scheme is expected to open in the coming weeks and will remain open for at least 120 days.

Vietnam-based electric vehicle (EV) maker VinFast’s Rs 160 billion (USD 2 billion) investment in Tamil Nadu will not qualify for benefits under India’s recently launched Scheme to Promote Manufacturing of Electric Passenger Cars, officials confirmed on Monday.The government clarified that to be eligible for incentives, investments must be capitalised only after formal approval under the scheme. Existing capital expenditures—such as VinFast’s ongoing work in Thoothukudi—do not meet the criteria, as the equipment and machinery must be put to use post-approval.“They have already capitalised their investment and will not qualify under the current terms,” said an official, adding that VinFast would need to make a fresh investment of Rs 4.15 billion to become eligible. The company had appealed for consideration of its existing investment but the request was declined.VinFast, a subsidiary of Vingroup, is preparing to launch its VF6 and VF7 models in India ahead of the upcoming festive season and plans to scale up local production to 150,000 EVs annually, targeting exports to the Middle East and Africa. It is also exploring expansion into Andhra Pradesh and Telangana.As per the scheme guidelines notified on 15 March 2024, approved applicants will be allowed to import completely built electric cars (CBUs) with a minimum CIF value of USD 35,000 at a reduced customs duty of 15 per cent for a period of five years from the date of approval. The scheme mandates a minimum investment of Rs 4.15 billion by each applicant.The application window for the scheme is expected to open in the coming weeks and will remain open for at least 120 days.

Next Story
Technology

We’re building robots that flow, not just move

Founded in 2021, Flo Mobility is reimagining construction automation with vision-AI robots designed for seamless movement through complex sites. In conversation with CW, Manesh Jain, Founder & CEO, discusses the company’s origin, its LiDAR-free tech stack, and expansion plans in the Middle East and US.What inspired the name Flo Mobility? Why ‘Flo’ and not ‘Flow’?When we started the company in 2021, our focus was on building autonomous navigation systems for robots. Since our work centred around robot movement, ‘mobility’ naturally became part of the name. We wanted to co..

Next Story
Real Estate

We’re committed to setting benchmarks in sustainable luxury living

From a landmark land acquisition in Boisar to ambitious launches across the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru and Pune, Birla Estates is driving future-ready growth with a strong focus on sustainability, partnerships and premium living, firmly anchored in its LifeDesigned® philosophy. K T Jithendran, Managing Director & CEO, outlines the company’s premium, sustainable growth playbook in conversation with PRATAP PADODE, Editor-in-Chief, CW. Excerpts:Birla Estates recently acquired a 70.92-acre land parcel in Boisar, Maharashtra, for..

Next Story
Infrastructure Urban

Mumbai’s land crunch and ageing homes call for structured renewal

Founded in 2022, Etonhurst Capital Partners is a real-estate fund management platform focused on the Indian market. As the firm achieves the first close of Rs 1.8 billion for its debut Rs 5 billion fund, Bamasish Paul, Co-founder, Managing Partner & CEO, discusses its sharp focus on redevelopment-driven value creation in Mumbai’s urban core with CW. Excerpts:Etonhurst Capital has achieved a significant milestone with the first close of Rs 1.8 billion for its Rs 5 billion fund. What factors contributed to this early success and how do you plan to attract further investments to r..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?