(MENAFN- KNN India) New Delhi, May 18 (KNN)
India will draw up additional guidelines for investments under its new electric vehicle (EV) policy announced in March, according to a government official.
Applications from auto companies based in countries sharing a land border with India, such as China, will face "much more onerous scrutiny."
The move comes as Tesla CEO Elon Musk cancelled a highly anticipated visit to India last month after postponing it at the last minute, citing "very heavy Tesla obligations."
Musk was scheduled to meet with Prime Minister Narendra Modi but instead made a surprise trip to China soon after.
"They (Tesla) are just silent... the (EV) policy was always meant for everybody," the official stated, adding that companies already operating in India will not need to establish new subsidiaries to apply under the policy, reported ET.
Unveiled on March 15th, the EV policy offers duty concessions to companies setting up manufacturing units in India with a minimum USD 500 million investment.
It allows for a three-year window to establish facilities and commence commercial EV production while reaching 50 per cent domestic value addition within five years.
Passenger EV manufacturers will also be permitted to import a limited number of vehicles costing over USD 35,000 at a 15 per cent import duty for five years as they ramp up local production.
The detailed guidelines will include application portals and the monitoring agency. The heavy industries ministry held initial consultations last month.
While India aims to attract EV investments, the additional scrutiny suggests caution towards neighbours like China amidst geopolitical tensions.
(KNN Bureau)
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