Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI)

Why in News?

Three months after launching the ₹4,150 crore EV localisation scheme (SPMEPCI) to attract global automakers like Tesla, no applications have been received, as companies await foreign trade agreements and have expressed no demand for policy modifications, officials said.

Description:

• Notified: 15 March 2024.
• Implementing Ministry: Ministry of Heavy Industries.
• Objective: Boost domestic manufacturing of electric passenger vehicles (EVs), attract global investment, and support India’s net-zero and Make in India goals.

Key Features:

1. Reduced Import Duties:
   1. Up to 8,000 electric 4-wheelers (CBUs) are imported annually at 15% duty (existing: 70–100%).
   1. Minimum CIF value: $35,000 per unit.
   1. Validity: 5 years from approval.
2. Investment Requirement:
   1. Minimum investment: ₹4,150 crore.
   1. Manufacturing operations must start within 3 years.
   1. Eligible investment: plant, machinery, ER&D, new buildings (≤10% of committed investment), charging infrastructure (≤5%).
3. Domestic Value Addition (DVA):
   1. 25% DVA within 3 years.
   1. 50% DVA within 5 years.
4. Compliance & Safeguards:
   1. Bank guarantee: total duty foregone or ₹4,150 crore, whichever is higher.
   1. Guarantee valid throughout scheme tenure.
5. Eligibility Criteria:
   1. Global automotive revenue ≥ ₹10,000 crore.
   1. Minimum global fixed asset investment ≥ ₹3,000 crore.

Supporting EV Ecosystem Schemes:

• PM E-DRIVE: Incentivises e-2W, e-3W, e-buses, e-trucks, and charging infrastructure.
• PLI-Auto: Production Linked Incentives for Advanced Automotive Technology.
• PLI for Advanced Chemistry Cells (ACC): Establish 50 GWh battery manufacturing.
• FAME-II: Incentivises domestic EV and component manufacturing.
• PM e-Bus Sewa – PSM: Supports deployment of 38,000+ electric buses.

Significance:

• Enhances India’s green mobility and EV manufacturing ecosystem.
• Aligns with Make in India and climate goals.
• Promotes job creation and local value addition.
• Attracts global EV manufacturers while safeguarding domestic economic benefits.

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