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No restrictions on car imports from China, under new EV policy for duty concessions, says DPIIT – CNBC TV18

No restrictions on car imports from China, under new EV policy for duty concessions, says DPIIT - CNBC TV18

Weeks after the government announced an ambitious policy to attract global electric vehicle manufacturer with duty concessions, senior officials in the government have said the policy will not restrict imports from any jurisdiction including China.

Speaking exclusively to CNBC-TV18, the Secretary for Department for Promotion of Industry and Internal Trade Rajesh Kumar Singh said, «There is no restriction on import from China per say. BYD vehicles are already on roads after paying duties. Only restriction that exists is on investments from land border countries. FDI from China is difficult, imports are theoretically possible under present regime, I cannot comment on what happens in future. Under existing policy regulations there is no restriction on imports from China as long as companies pay duties and meet domestic value addition criteria.»

India’s new electric vehicle manufacturing policy offers duty concessions from 100% to 15% for fully built electric cars in return for a minimum investment commitment of ₹4,150 crore. The applicant has to submit a bank guarantee of an equivalent amount, which will be forfeited in case the company does not achieve 25% domestic value addition and begin manufacturing in three years. Every applicant must achieve a 50% domestic value addition within 5 years of entering India.
The official told CNBC-TV18 that the new electric vehicle manufacturing policy is a balanced one and has received good response from different stakeholders, including those who were opposed to the policy earlier.

Speaking about the possibility of Tesla availing duty concessions under the new policy, the secretary said, “I will only say that policy has been well received by companies outside India and global companies already present in India.»

Singh also said that the government is expecting some electric car makers to make an announcement soon, but declined to name any entity. «I will leave it to the companies to make their own commercial business announcements,» he said.