JUNE 02: In a major step toward promoting sustainable mobility and achieving the goal of net zero emissions by 2070, the Government of India, under the leadership of Hon’ble Prime Minister Shri Narendra Modi, has approved the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI). This visionary initiative is set to boost domestic manufacturing, attract foreign investments, and position India as a global hub for electric vehicle (EV) production and innovation.
The Ministry of Heavy Industries (MHI) issued detailed guidelines for the scheme on 15th March 2024, in conjunction with a notification by the Department of Revenue, Ministry of Finance, enabling reduced import duties in alignment with the scheme’s provisions. A formal Notice Inviting Applications is expected to be published soon, allowing prospective applicants to apply online.
The scheme enables approved applicants to import Completely Built Units (CBUs) of electric four-wheelers (e-4W) with a minimum CIF value of USD 35,000 at a reduced customs duty of 15% for up to five years from the date of approval.
To qualify, applicants must commit a minimum investment of ₹4,150 crore toward the domestic manufacturing of EVs. Investments can be made in greenfield or clearly demarcated brownfield projects. Eligible expenses include those for plant, machinery, equipment, engineering R&D, and associated utilities. Land costs are excluded, but expenditure on the main plant building and utilities (up to 10%) and charging infrastructure (up to 5%) will be considered.
The scheme will follow the Standard Operating Procedure (SOP) under the existing Production Linked Incentive (PLI) Scheme for Automobile and Auto Components to assess the Domestic Value Addition (DVA). DVA certification must be obtained through MHI-approved testing agencies.
To ensure compliance, applicants must submit a Bank Guarantee from a scheduled commercial bank in India equivalent to the higher of the total customs duty forgone or ₹4,150 crore, valid throughout the scheme period.
The application window will remain open for 120 days initially, with MHI retaining the right to reopen it as needed until 15th March 2026. A non-refundable fee of ₹5,00,000 will be charged at the time of submission. The detailed notice will be made available on the official website of the Ministry of Heavy Industries.