Tesla and a couple of other global car-makers want exemption from local value addition of cost in heavy batteries, semiconductors and magnetic parts and also demanded subsidies on the import of cars in India
After several rounds of heated discussions and repeated proposals, the union government has finally decided that there are no intentions to offer duty exemptions from the domestic value addition in regards to import of electric cars in the nation.
When media approached the government for queries, Minister of State for Commerce and Industry Som Parkash mentioned that the production linked incentive scheme for auto component and automobile industry with an outlay of Rs 25,938 crore was already proclaimed by the government. Tesla and a couple of other global car-makers want exemption from local value addition of cost in heavy batteries, semiconductors and magnetic parts and also demanded subsidies on the import of cars in India.
According to the government, the decision has been taken in order to provide fiscal incentives to in-house manufacturing and production of top-notch automobile technologies products, comprising electric vehicles and their components. The minister further told the media, "presently, there is no proposal either to provide exemption from local value addition cost or to provide subsidy on import duty on import of EVs in India."
The minister in a written statement to the lower house of the parliament mentioned that numerous initiatives have been undertaken by the government to escalate foreign and local investments in an effort to further grow the domestic value addition under the Make in India policy. Of late, a PLI scheme of Rs 18,100 crore was also signed by the ministry to develop cutting-edge chemistry cells battery storage. The scheme is going to incentivize the set-up of Giga scale ACC manufacturing facilities in the country for 50 gigawatt hours.
