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Grand News for Tesla : New EV is approved by the Modi Government : Check out its Conditions and Guidlines

Recently on Friday, the Indian Government approved the new EV policy. The way has been cleared for global EV companies to enter the huge Indian market.

Recently, during Narendra Modi's US tour, PM Modi had met Tesla CEO Elon Musk in which there was also talk of reducing the import duty of cars in India, although the government had not given so much emphasis on this at that time, but now Considering this, the government has made it easy for Global EV companies including Tesla who want to invest in a big market like India, keeping India's interests in mind.

According to the new EV Electric Vehicle Policy, if any EV company wants to invest in India, then the company will have to initially invest at least Rs 4150 crore i.e. (USD 500 million) and an investment of USD 800 million within 5 years. In addition to this, the company will have to set up manufacturing unit in 3 years. It is mandatory for the Company to have 25% Domestic value addition by 3rs year and 50% DVA  by 5th year.

Along with this, the company will get relief by providing reduction in import duty. According to the old EV policy, 100% Custom duty  was imposed on cars priced above 40000 USD and 60% Custom duty was imposed on cars priced below this. But now according to the new EV policy, Temporarily for 5 years, the customs duty on car imports worth more than $35,000 by invested companies will be reduced to 15%. In which companies will be allowed to import a maximum of 8000 cars worth 40000 USD in 1 year and in 5 years the company will be able to import 40000 cars.

In making the new EV policy, India's interest was kept before any big company's investment in India. According to this, if the company is not able to make the committed investment within the stipulated period, then India will not suffer any loss, because through the investment of Companies will be guaranteed by Bank.

Recently in November, Piyush Goyal visited a Tesla company unit located in California, but during his short visit, he did not meet Tesla CEO Elon Musk. But stated that, American company Tesla is in the process of doubling its component imports from India, he also shared a glimpse of his visit on social media. 

According to a report by Bloomberg, Tesla can make an initial investment of 2 billion US in India. And there is also talk of purchasing auto parts worth 15 billion dollars from India, although till now the company has not given any official statement on this deal.

After the approval of  New Ev policy, Tesla shared information and posts on its Twitter handle.

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