Facts for Prelims (FFP)
Source: PIB
Context: The Union Government has approved an E-Vehicle policy aimed at positioning India as a manufacturing hub for electric vehicles (EVs) with cutting-edge technology.
| Aspect | Details |
| Policy Objective | Promote India as a manufacturing destination for electric vehicles (EVs) with advanced technology |
| Implementation | The Project Management Agency (PMA) will be responsible for providing secretarial, managerial and implementation support and carrying out other responsibilities as assigned by the Government of India (GoI) |
| Ministry | Ministry of Heavy Industries |
| Eligibility Criteria
|
Minimum Investment Requirement: Rs 4150 Cr (approximately USD 500 Mn) |
| Maximum Investment: No cap on maximum investment | |
| Manufacturing Timeline: Set up manufacturing facilities within 3 years | |
| Domestic Value Addition (DVA) criteria during manufacturing: 25% within a period of 3 years, and 50% within 5 years from the date of issuance of approval letter by the Ministry of Heavy Industries/ PMA | |
| The Bank guarantee will be returned only when 50% DVA is attained an investment of at least Rs 4,150 crore has been made, or to the extent of duty foregone in 5 years, whichever is higher. | |
| Performance Criteria: All electric passenger vehicles shall meet the performance criteria of the Production Linked Incentive (PLI) Auto scheme. | |
| Tenure of the Policy | 5 years or as notified by GoI. |
| Key Benefits | Encourages technological advancements in EV manufacturing; Fosters Make in India initiative; Promotes healthy competition among EV players; Reduces crude oil imports and trade deficit; Mitigates air pollution, particularly in urban areas; Positive impact on health and environment |
| Other Initiatives to Promote EV | Faster Adoption and Manufacturing of EVs (FAME) India scheme: Phase I was launched in 2015 and Phase II was launched in 2019. |
| EV 30@30 initiative for the deployment of EVs and target at least 30 per cent of new EV sales by 2030 | |
| PLI Scheme for Automobile and Automotive Components (PLI-Auto) in 2021, as financial incentives to promote domestic manufacturing and draw investments into the value chain of the automotive manufacturing industry. |
