(MENAFN- KNN India) New Delhi, May 20 (KNN) The Indian government is preparing to release supplementary guidelines for its recently announced electric vehicle (EV) policy, a senior official has stated.
The additional measures will reportedly subject applications from automotive companies based in countries sharing a land border with India to heightened scrutiny, reported ET.
Unveiled in March, the EV policy aims to attract substantial foreign investment into India's burgeoning EV manufacturing sector.
It offers fiscal incentives, including reduced import duties, to companies committing a minimum of USD 500 million towards establishing domestic production facilities with 50 per cent local value addition within five years.
While existing automotive firms operating in India will not be required to establish new subsidiaries to apply under the policy, proposals from manufacturers headquartered in neighbouring nations will face 'much more onerous scrutiny,' according to the official who spoke on the condition of anonymity.
The impending guidelines will provide further details regarding application portals and the agency assigned to monitor approved projects, the official added.
This development follows the postponement of a highly anticipated visit to India by Tesla CEO Elon Musk last month.
Despite the new EV policy, the electric automaker has yet to formally communicate its investment plans to the Indian authorities.
"They (Tesla) are just silent... the policy was always meant for everybody," the official remarked, stating that "the commercial decisions are announced by the companies."
Musk was initially scheduled to visit India on April 21-22 but abruptly called off the trip, citing 'very heavy Tesla obligations.'
His surprise visit to China a week later, where he met with senior government officials, further fuelled speculation about Tesla's India strategy.
The Ministry of Heavy Industries conducted preliminary consultations on the EV policy last month.
Approved companies will have a three-year window to establish manufacturing operations and initiate commercial EV production in India.
(KNN Bureau)
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