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

PWOnlyIAS

June 04, 2025

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

The Ministry of Heavy Industries has unveiled detailed guidelines for the “Scheme to Promote Manufacturing of Electric Passenger Cars in India” (SPMEPCI). 

About the Scheme to Promote Manufacturing of Electric Passenger Cars in India

SPMEPCI

  • This scheme aims to attract global EV manufacturers, strengthen India’s position as a global EV hub, and support the country’s net-zero emissions goal by 2070.  
  • Nodal Ministry: Ministry of Heavy Industries.
  • Launched in: 2024
  • Implementation: Project Management Agency (PMA) is responsible for providing secretarial, managerial and implementation support.

Objectives of the Scheme  

  • Attract Foreign Investment: Encourage global automakers to set up EV manufacturing units in India.  
  • Boost ‘Make in India’: Promote domestic production with mandatory local value addition (DVA) requirements.  
  • Reduce Carbon Footprint: Accelerate the shift to electric mobility for a sustainable future.  

Key highlights of the Guidelines

  • Major Incentives for Manufacturers: Approved manufacturers can import electric four-wheelers (e-4W) at a 15% customs duty (down from the usual rate).  
  • Lower custom duty is valid for a period of 5 years from the Application Approval Date.
  • Conditions:  Minimum import cost is $35,000 per vehicle.  
  • Annual import cap: 8,000 units per year (unused quota can be carried forward).  
  • Total duty benefits capped at ₹6,484 crore per company or the investment amount (whichever is lower).  
  • Investment Requirements:  Minimum investment should be ₹4,150 crore (~$500 million) within 3 years.  
  • Eligible expenses:    – Plant, machinery, R&D, and charging infrastructure (up to 5% of investment).  
  • Domestic Value Addition (DVA) Mandate:  
    • 25% local sourcing within 3 years.  
    • 50% local sourcing within 5 years.  
    • Compliance will be verified by MHI-approved agencies.  
  • Bank Guarantee: Companies must submit a bank guarantee equivalent to ₹4,150 crore or the total duty benefit (whichever is higher).  

Eligibility Criteria for Applicants

  • An applicant is required to have a global group revenue from automotive manufacturing of a minimum ₹10,000 crore. 
  • Moreover, the global investment of a company or its group companies in fixed assets must be at least ₹3,000 crore.

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UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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