Govt. Launches Phased Manufacturing Programme to Aid the Domestic EV Market

The Government of India has launched the Phased Manufacturing Programme (PMP) to promote indigenous manufacturing of electric vehicles, its assemblies/sub-assemblies and parts/subparts/inputs of the sub-assemblies thereof.

The Government approved the National Mission on Electric Mobility in 2011 and subsequently the National Electric Mobility Mission Plan 2020 was unveiled in 2013 by the then Prime Minister. As part of the mission, the Department of Heavy Industry notified a scheme namely FAME-India in April 2015 with the aim to incentivise electric vehicle. To promote electric mobility, basic customs duty and GST were reduced and rationalised on electric vehicles in June 2017. Giving an impetus to the launch of electric vehicles in India.

To provide further impetus to electric mobility and promote indigenous development of electric vehicles, the Government had in its recent customs notification, dated January 29, 2019, further reduced and rationalised basic customs duty on electric vehicles.

“To promote domestic manufacturing of electric vehicles, a phased manufacturing roadmap has been prepared keeping in view the present status of a manufacturing ecosystem in the country, wherein through graded duty structure indigenous manufacturing of electric vehicles and parts will be promoted over a period of time. The intention is to substantially increase value addition and capacity building within the country,” the government released in its notification.

The Phased Manufacturing Programme (PMP) has been notified with the objective of development of domestic manufacturing of electric vehicles and the related parts and assemblies so as to increase the domestic value addition and creating employment opportunities. The PMP has been so designed to enable the manufacturers in the sector to plan their investments for establishment of a robust indigenous electric vehicles and related sub-assembly/components manufacturing base in the country.

The Department of Heavy Industries and Public Enterprises (DHI) has worked on a list of vehicle types and equipment that are involved in the manufacture of electric vehicles and how the implementation of PMP will bring in a change in the Customs Duties.

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Published with permission from iamrenew.com