Ministry of Heavy Industries had notified a scheme on March 15, 2024 vide Notification No. 1363(E) to promote the domestic manufacturing of electric passenger cars (SPMEPCI Scheme). This initiative aligns with the national objectives of enhancing electric vehicle production, attracting global manufacturers, creating employment opportunities, and positioning India as a manufacturing hub under the “Make in India” campaign.

This latest notification provides detailed Guidelines for effective implementation of the SPMEPCI scheme. It covers the application format, eligibility conditions, committed investments, customs duty concessions, import conditions, monitoring mechanism, compliance parameters, and verification protocols.

Key highlights include:

• Committed Investment: Minimum ₹4,150 crore; benefits capped at ₹6,484 crore.
• Import Concession: Customs duty can be reduced to 15% (from standard 70–100%) for a limited number of vehicles, calculated based on investment.
• Eligibility: Only OEMs (Original Equipment Manufacturers) or their group companies meeting FDI and financial credibility norms.
• Application & Approvals: Involves filing detailed forms online and offline, supported by a ₹5 lakh non-refundable fee, bank guarantees, and integrity pacts.
• Monitoring: The Project Management Agency (PMA) will monitor investment compliance, manufacturing progress, and quarterly reviews.
• Revenue Commitment: Minimum revenue thresholds must be met in year 4 and year 5 — ₹5,000 crore and ₹7,500 crore respectively, else financial penalties will apply.
• Domestic Value Addition (DVA): Must follow SOPs as per PLI-Auto Scheme; testing agencies to verify local content.
• Operational Conditions: Production to start within 3 years from approval; adherence to CMVR and all legal compliances mandatory.
• Violation Handling: Breach of guidelines can lead to invocation of bank guarantee, demand for refund of benefits with penal interest, or disqualification.