Customs Duty - Central News Hub

Tesla’s India Entry Boosted With New EV Policy

The Government of India has approved a new electric vehicle (EV) policy that is designed to attract investments in the EV space by global manufacturers like the Musk-run electric car company.

Tesla lovers in the country are anxiously waiting for the first response from Elon Musk after the government approved a new electric vehicle (EV) policy that is designed to attract investments in the EV space by global manufacturers like the Musk-run electric car company.

It was in 2015 when Prime Minister Narendra Modi visited Tesla headquarters in Palo Alto, California and met the billionaire who gave the Prime Minister a tour of the company’s electric car plant.

In later years, the billionaire sought customs duty to be lowered so that he could bring Tesla vehicles to the country.

Presently, customs duty on cars imported as completely built units (CBUs) varies from 60-100 per cent, depending on their cost.

In the new policy, the government has reduced the customs duty to 15 per cent, with certain riders.

“The customs duty of 15 per cent (as applicable to completely knocked down or CKD units) would be applicable on the vehicle of minimum value of $35,000 and above for a total period of five years subject to the manufacturer setting up manufacturing facilities in India within a 3-year period,” according to the government.

This now paves the way for Musk to enter the Indian market.

Last year, PM Modi met Musk in the US and appreciated his efforts at making technology accessible and affordable in various sectors.

The Prime Minister invited Musk to explore opportunities in India for investments in electric mobility and the rapidly expanding commercial space sector.

After hearing PM Modi’s ‘Make in India’ pitch, the Tesla CEO announced that his electric vehicle and battery company will come to the country “as soon as it is humanly possible”.

“He (PM Modi) really cares about India because he’s pushing us to make significant investments in India, which is something that we intend to do and we’re just trying to figure out the right timing,” said the billionaire.

In the new EV scheme, the government mentioned that a minimum investment of Rs 4,150 crore (about $500 million) will be needed to set up manufacturing facilities and production started within three years and reach 25 per cent DVA (domestic value addition) by three years and 50 per cent DVA within 5 years at the maximum.

India’s EV market has the potential to achieve over 40 per cent penetration with $100 billion revenue by 2030.

ALSO READ: Starship Will Be On Mars In 5 Years: Musk

India waives customs duty on oxygen, vaccines

The government also exempted basic customs duty on import of Covid vaccines with immediate effect for a period of three months, reports Asian Lite News

The Union government on Saturday decided to grant full exemption from Basic Customs Duty and health cess on import of oxygen and oxygen related equipment for three months. The government also exempted basic customs duty on import of Covid vaccines with immediate effect for a period of three months.

The decision came after Prime Minister Narendra Modi chaired a meeting to review steps taken to boost oxygen availability in the country. He emphasized that there was an immediate need to augment the supply of medical grade oxygen as well as equipment required for patient care both at home and in hospitals.

Also Read – Govt to import oxygen containers, plants from Germany

The Prime Minister stressed that all ministries and departments need to work in synergy to increase availability of oxygen and medical supplies. The Prime Minister was briefed that basic customs duty was exempted on Remdesivir and its API recently. It was suggested that import of equipment related to providing oxygen to patients needs to be expedited. In order to augment their production and availability and to meet the rising demand, it was decided to grant full exemption from Basic Customs Duty and health cess on import of items related to Oxygen and Oxygen related equipment for a period of three months with immediate effect.

A view of LNJP Hospital after lockdown in National Capital in the wake of rising Covid-19 cases, in New Delhi On Friday, 23 April, 2021.(Photo:Qamar Sibtain/IANS)

Items exempted from basic customs duty and health cess are medical grade oxygen, oxygen concentrator along with flow meter, regulator, connectors and tubing, Vacuum Pressure Swing Absorption (VPSA) and Pressure Swing Absorption (PSA) oxygen plants, Cryogenic Oxygen Air Separation Units (ASUs) producing liquid/gaseous oxygen, Oxygen Canister, Oxygen Filling Systems, Oxygen Storage tanks, Oxygen cylinders including cryogenic cylinders and tanks, Oxygen Generators, ISO Containers for Shipping Oxygen, Cryogenic Road transport tanks for Oxygen.

Also Read – Clock ticks for out-of-breath patients

Parts of the above are to be used for the manufacture of equipment for production, transportation, distribution or storage of Oxygen, any other device from which Oxygen can be generated, Ventilators (capable of functioning as high-flow devices) with nasal cannula; Compressors including all accessories and tubing; humidifiers and Viral filters, High flow nasal cannula device with all attachments, Helmets for use with non-invasive ventilation, Non-invasive ventilation oronasal masks for ICU ventilators, non-invasive ventilation nasal masks for ICU ventilators are also exempted from basic customs duty.

A health worker wearing PPE suit at Shahnai banquet Hall in front of LNJP hospital in New Delhi on Thursday April 15th, 2021.(Photo:Wasim Sarvar/IANS)

The government said that apart from the above, it was also decided that basic customs duty on import of Covid vaccines be also exempted with immediate effect for a period of three months. “This will boost availability of these items as well as make them cheaper,” the government said.

The Prime Minister directed the Revenue Department to ensure seamless and quick custom clearance of such equipment. Accordingly, the Department of Revenue has nominated Joint Secretary, Customs, Gaurav Masaldan as the nodal officer for issues related to customs clearance for the above-mentioned items.

Also Read – Govt response sought to logistical support for oxygen

The Union Government has taken a lot of measures in the last few days to improve supply of oxygen and medical supplies. IAF planes are bringing in cryogenic oxygen tanks from Singapore. The IAF is also transporting oxygen tanks in the country to reduce travel times.

Similarly, in a major decision on Friday, free food grains will be given to 80 crore Indians for the month of May and June this year. Finance Minister, Commerce and Industry Minister, Health Minister, Principal Secretary to the PM, Member NITI Aayog, Dr Randdep Guleria and Secretaries of the department of Revenue, Health and DPIIT and other officials participated in the meeting.