Govt likely to provide incentives for manufacturing high-end electric vehicles
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People in the know said the government has agreed upon the permitted scope of investments under the Scheme for Manufacturing Electric Cars (SMEC) to make it viable for automakers for developing an ecosystem for EV manufacturing, in the latest and final round of discussions with industry stakeholders last week.
“Investments in R&D, manufacturing of electric vehicles in dedicated assembly lines in brownfield facilities have both been agreed upon,” said one of the persons cited above.
SMEC requires automakers to invest at least $500 million (over Rs 4,300 crore) in a greenfield EV factory within three years of getting approval to avail concessional import duties. The eligibility of investments under R&D are similar to the qualifying criteria for the auto production linked incentive (PLI) scheme already in force.
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