RAS question
What is the minimum CIF value of imported EVs under SPMEPCI?
Correct answer: (B) USD 35,000.
Under SPMEPCI, imported EV passenger cars must have a minimum CIF value of USD 35,000.
Explanation
SPMEPCI sets the import threshold in terms of the vehicle's CIF value, which includes cost, insurance and freight. The Ministry of Heavy Industries' Gazette notification dated 15 March 2024 states that EV passenger cars, specifically e-4W vehicles, may initially be imported under the scheme only if their CIF value is at least USD 35,000. It links this threshold to the reduced 15% duty rate, which applies for five years from the date on which the ministry issues the approval letter. Therefore, USD 35,000 is the minimum CIF value required by the scheme, rather than a broad price band or an illustrative amount.
Why the other options are wrong
- (A) USD 25,000 is below the required minimum CIF value, so an imported EV at this value would not qualify under the scheme.
- (C) USD 50,000 is above the required CIF floor, but the scheme sets the minimum at USD 35,000, not USD 50,000.
- (D) USD 75,000 is above the required CIF floor and is not the minimum value set by the scheme.
Concept
This question tests industrial policy and tariff-linked incentive design in the Indian Economy syllabus. RAS often asks about such scheme conditions because a single threshold can determine eligibility and duty treatment and can help eliminate incorrect options in MCQs.