New EV policy in making: Govt plans 2nd stakeholders meet

The Ministry of Heavy Industries will convene a second round of meetings with stakeholders in a “month or two” to release guidelines on the new Indian EV policy. The new electric vehicle (EV) policy has been developed to entice international automakers like Tesla to establish manufacturing operations in India, citing a senior official The Economic Times reported. Automakers that want to take advantage of the policy's incentives will need to make new investments in accordance with the new guidelines; previous investments will not be taken into account, the report added.

This has been communicated to Vinfast, a Vietnamese electric vehicle manufacturer that announced in February of this year that it will spend USD 500 million (about Rs 4,000 crore) in Tamil Nadu over a five-year period, the official added.

The Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) was authorised by the government on March 15, 2024, marking a crucial step towards revolutionising the EV scene in India.

An adviser representing Tesla, The Asia Group (TAG), was present at the inaugural stakeholders' meeting in April.

“We possess several representatives. After studying them, we could have the second consultation meeting in a month or two. Our role is to provide guidelines," the representative said.

The official stated that they would want to be issued by the government through a consultation process, saying, "We will draft the guidelines, distribute them to potential applicants, and then call another consultative meeting."

He said, "We will invite all, whoever wants to come is welcome," when asked if Tesla will be invited to the second consultative meeting.

According to him, import duties can be waived for qualifying companies under the SPMEPCI as long as they spend USD 500 million on greenfield projects.

"The plan was informed on March 15 and it was said that the government will open the window and release its rules in no less than 120 days.