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
Infrastructure Transport

Dassault To Build Falcon Jets In India With Reliance

Reliance Infrastructure Ltd’s subsidiary, Reliance Aerostructure, has signed an agreement with France’s Dassault Aviation to manufacture Falcon 2000 business jets in India, with the first batch expected to roll out from its Nagpur facility by 2028. This marks the first time a Falcon aircraft will be entirely built outside France.The announcement sent Reliance Infrastructure shares surging, hitting the 5 per cent upper circuit on the BSE. Anil Ambani, Chairman of Reliance Group, hailed the agreement as a “symbol of India’s technological and manufacturing strength”, adding that it aims..

Next Story
Infrastructure Urban

INDEA Lays Foundation for India’s First Auto Design School

The Indian School for Design of Automobiles (INDEA), the country’s first institute focused solely on automobile design and management, held its foundation stone ceremony at XLRI Delhi-NCR. The event was graced by Union Minister for Road Transport and Highways, Nitin Gadkari, who virtually unveiled the stone as Chief Guest.INDEA aims to become a premier talent hub, driving innovation in the Indian automotive sector. The school will focus on advanced design, mobility solutions, and sustainable practices, playing a vital role in shaping India’s transition from a cost-driven to a quality-led a..

Next Story
Infrastructure Transport

Karnataka Launches Global Innovation Hub at Airport City

The Government of Karnataka, in collaboration with Bengaluru Airport City Limited (BACL) and ANSR, has launched a global innovation hub named District I at Bengaluru Airport City's business park. The initiative aims to elevate India’s innovation ecosystem to a global scale by fostering collaboration among startups, academia, enterprises, and government bodies.District I will serve as a platform for deep-tech entrepreneurship, enterprise innovation, and commercialisation of academic research. It brings together Global Capability Centres (GCCs), IT firms, corporate labs, startups, venture capi..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?