India tightens scrutiny for EV investments: reports

India is set issue additional investment guidelines under the electric vehicle (EV) policy announced in March, as per the reports of The Economic Times, citing a government official. Application from auto companies, which are based in countries sharing border with India, such as China, will be required to undergo “much more onerous scrutiny.” However, the companies, which are already established in the country will not need to create new subsidiaries to apply under the policy, stated the official.

The development comes after the cancellation of Tesla CEO Elon Musk’s highly anticipated visit to India in April. The EV company is yet to reveal its plan to the Indian government under the new EV policy. Musk, who was scheduled to visit India on April 21-22, postponed the trip last minute, citing a “very heavy Tesla obligations.” Surprisingly, he visited China a week later, where he met with high ranking officials.

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The official, in a conversation with ET, said, “They (Tesla) are just silent.. the (EV) policy was always meant for everybody.” It added, “The commercial decisions are announced by the companies.”

The forthcoming guidelines will provide details on portal links and the project monitoring agency.