Published by Vashishth Academy – Best Government Exam Coaching in Ludhiana
📌 Why in News?
The Ministry of Heavy Industries has officially released detailed guidelines for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI). First announced on 15 March 2024, this scheme aims to accelerate India’s electric vehicle (EV) ecosystem by offering reduced import duties in return for domestic manufacturing commitments.
This initiative is a crucial step in India’s push toward green mobility and self-reliance (Atmanirbhar Bharat) in the automobile sector.
⚙️ Key Highlights of the SPMEPCI Scheme
1. ✅ Import Duty Concessions
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EV manufacturers can import up to 8,000 electric four-wheelers (e-4Ws) per year.
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Import duty reduced to 15% (down from 70–100%).
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Applicable only to Completely Built Units (CBUs) with a minimum CIF value of $35,000.
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Benefit available for 5 years from the date of approval.
2. 💰 Minimum Investment Requirement
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Minimum investment: ₹4,150 crore.
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Domestic manufacturing must commence within 3 years.
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Eligible expenses include:
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Plant and machinery
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Engineering, R&D facilities
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Buildings (max 10%) and charging infrastructure (max 5%)
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Land cost is excluded
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🔄 Domestic Value Addition (DVA) Targets
To promote Make in India:
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25% DVA within 3 years
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50% DVA within 5 years
These targets aim to build robust local supply chains and promote indigenous innovation.
🔐 Safeguards and Compliance Measures
Applicants must furnish a bank guarantee equal to:
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The total foregone customs duty (capped at ₹6,484 crore), or
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₹4,150 crore – whichever is higher
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The guarantee must remain valid for the entire scheme period
✅ Eligibility Criteria
To qualify for the scheme:
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The applicant’s global automotive revenue must be at least ₹10,000 crore
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A minimum of ₹3,000 crore investment in fixed assets (by company or group)
📅 Application Timeline
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Application window: 120 days, beginning June 2025
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Validity: Till 15 March 2026
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Non-refundable application fee: ₹5 lakh
✅ Conclusion – Why This Matters
The SPMEPCI scheme is a major milestone for India’s EV policy framework, targeting:
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🌱 Environmental sustainability
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🏭 Boosting domestic manufacturing
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🌍 Attracting global EV leaders like Tesla
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🔋 Creating self-sufficient EV value chains
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🎯 Progressing towards Net-Zero Emissions by 2070
✍️ Vashishth Academy’s Take
This topic is crucial for UPSC Prelims & Mains, State PCS exams, and other competitive exams. Aspirants should focus on:
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Government schemes related to the automobile sector
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India’s EV targets and commitments
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Role of foreign investment vs domestic value addition
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Daily current affairs analysis
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