Eyeing to spark local EV-manufacturing boom under the FAME-III scheme, the Ministry of Heavy Industries proposed to reduce the phased manufacturing programme components.
The Ministry of Heavy Industries is evaluating tighter localisation standards for EV manufacturers under the FAME-III subsidy scheme and has proposed for cutting the Phased Manufacturing Programme (PMP) components from 18 to 12.
Recently, it was disclosed that components like power and control wiring harnesses, connectors, miniature circuit breakers, electric safety devices, lighting, and body panels, previously removed from the list, will now need to be produced domestically.
At present, MHI is engaging with stakeholders to refine these changes and improve the programme’s impact.
Furthermore, the ministry has stressed that all parts and sub-assemblies of electric vehicles must be manufactured and assembled domestically. A clear localisation strategy is being discussed for components under the PMP. For example, only battery cells and their thermal and management systems can be imported in electric two-wheelers, three-wheelers, and electric rickshaws. In contrast, complete battery modules or packs must be sourced domestically.
MHI has highlighted that imports of onboard chargers are limited to semiconductor devices and electronics; all other components, including PCB manufacturing and soldering, must be produced domestically.
Similarly, for vehicle control units and DC-to-DC converters, only semiconductor devices and electronic components can be imported, with all other parts, including PCB manufacturing, must be sourced locally.
For traction motors, imports are restricted to permanent magnets, Hall Effect sensor kits, and encoders, while other components must be domestically procured.
To be eligible for PMP and FAME-III, the ministry has specified that activities must include local sourcing of raw materials, assembly of finished products, and partial imports combined with local sourcing. Local suppliers importing finished parts or direct foreign imports will not qualify.
However, due to limited local production, EV makers are concerned about the mandatory domestic PCB manufacturing requirement.
As reported by the Business Standard, a senior industry stakeholder pointed out that the recent budget reduced duties on PCBs, indicating that domestic manufacturing is limited. Then why do EV makers have stricter procurement rules compared to mobile device manufacturers, who are allowed to import PCBs?
