Govt Opens Portal for SPMPCI Scheme

Prelims: Polity and governance | Current events of national and international importance

Why in news?

The Government of India has opened an online portal for global and Indian automakers to apply under a new Electric Car Manufacturing Scheme.

• Portal – It is launched to register electric passenger car manufacturers to avail newly launched Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMPCI).
• Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMPCI) – It is the scheme launched to boost EV production, reducing import costs, and promoting Make in India.
• Launched by – Ministry of Heavy Industries, Government of India
• Objectives – To attract global and domestic investment in the manufacturing of electric passenger cars in India.
• To reduce dependency on imports by promoting Make in India.
• To boost EV adoption and eco-friendly mobility.
• Key Features of SPMPCI:
• Import duty benefit – Automakers can import up to 8,000 electric cars per year at a reduced import duty of 15%, compared to the existing 70-100% duty.
• This benefit applies only to companies committing to invest in local manufacturing.
• Minimum investment requirement – At least ₹4,150 crore must be invested by eligible companies in setting up manufacturing facilities in India.
• Domestic Value Addition (DVA) – 25% DVA within 3 years (25% of parts and components made in India) and 50% DVA within 5 years.
• Timeline for operations – Companies must set up manufacturing units and commence production within 3 years of approval.
• Bank guarantee – Bank guarantee equivalent to either the total duty benefit or ₹4,150 crore, whichever is higher, must be provided.
• Eligibility criteria – Global automotive group revenue of at least ₹10,000 crore.
• Global investment in fixed assets of at least ₹3,000 crore, as per latest audited statements.
• Restrictions on investment by companies from land-border sharing countries like China and Pakistan remain in place.
• Charging infrastructure – Investment in charging infrastructure allowed up to 5% of committed investment.
• Investment in factory buildings allowed up to 10% of committed investment (excluding land).
• Expenditure on land purchase is not counted under eligible investment.

Reference

The Hindu| Govt Opens Portal for Auto-Makers