According to officials aware of the development, this was a much sought after policy clarity that global EV makers with manufacturing presence in India were looking for before participating in the SMEC.New Delhi: Investment in setting up a dedicated electric vehicle (EV) assembly line within existing factory premises will qualify as eligible investment for sops under the Scheme to Promote Manufacturing of Electric Passenger Cars (SMEC). According to officials aware of the development, this was a much sought after policy clarity that global EV makers with manufacturing presence in India were looking for before participating in the SMEC.
“Guidelines for SMEC are finalised...investment in a new EV assembly line will be eligible for getting sops,” a senior government official told ET.
Foreign companies, including those with existing facilities in India, can apply for benefits under SMEC, which allows automakers to initially import high-end electric cars at a concessional duty even as they set up local units and scale up production.
Several sources aware of the developments ET spoke to said the major ask of carmakers evaluating participating in the scheme is for clarity on what would construe as investment. “In the latest round of consultations held between the government and industry stakeholders, company officials urged the government to consider fresh investments in dedicated assembly lines for making electric cars in their existing factories producing internal combustions engine vehicles under the purview of the scheme,” a senior executive said.
