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Guidelines For Electric Passenger Vehicle Manufacturing Scheme

Last updated on June 3rd, 2025 Posted on June 3, 2025 by NEXT IAS Current Affairs Team  334

Syllabus: GS3/ Science and Technology

Context

  • The Ministry of Heavy Industries (MHI) has notified the detailed guidelines for the “Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI)”, aiming to position India as a major electric vehicle (EV) manufacturing hub.

SPMEPCI Scheme

  • Nodal Ministry: Ministry of Heavy Industries (MHI)
  • Launch Date: Announced in 2024
  • Objective:
    • Attract global investments in India’s EV sector
    • Promote domestic manufacturing of EVs
    • Align with India’s climate commitments (net-zero by 2070)
    • Support job creation and industrial growth.
  • Guidelines:
    • Under the scheme, approved companies will be allowed to import a limited number of completely built electric four-wheelers (e-4W) at a reduced customs duty rate of 15 percent for a period of five years. 
    • These imports must meet a minimum cost, insurance and freight (CIF) value of USD 35,000 per unit. 
    • The concession is capped at 8,000 units per year, with the flexibility to carry forward unused quotas. 
    • The total duty foregone will be limited to either Rs 6,484 crore or the actual investment made by the applicant, whichever is lower.

Significance of the Scheme

  • Encourages cutting-edge EV technology transfer to India.
  • It strengthens Make in India and Aatmanirbhar Bharat initiatives.
  • The scheme enhances clean mobility adoption and contributes to climate goals.
  • It aims to generate high-skilled employment in manufacturing and R&D.
  • It seeks to position India as a preferred destination for global EV investments.
Other initiatives for Electric Vehicle mobility in India
– Electric Mobility Promotion Scheme 2024 (EMPS) with an outlay of  ₹ 778 Crore for a period 6 months (April 2024-September 2024) which provides incentives to buyers of e-2W and e-3W.
– Production Linked Incentive Scheme for Automobile and Auto Component Industry (PLI-AAT) with a budgetary outlay of  ₹ 25,938 Crore. 
1. The scheme incentivises various categories of electric vehicles including e-2W, e-3W, e-4W, e-buses & e-trucks also.
– Production Linked Incentive Scheme for manufacturing of Advanced Chemistry Cell (PLI-ACC) in the country with a budgetary outlay of ₹18,100 Crore.
– PM E-DRIVE Scheme: It stands for PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE).
1. The PM E-DRIVE will replace Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II).
2. The scheme will focus on promoting electric buses, trucks, and ambulances. Electric cars for private or shared mobility will not be covered under this new scheme.

Source: DDNews

 
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