REMOVAL OF CAPITALISATION NORMS FOR VEHICLES
Rajya Sabha
In respect of Joint Ventures of car
manufacturing units involving majority foreign equity ownership,
a minimum foreign equity of US $ 50 million was required. This
requirement was, however, removed with the removal of Quantitative
Restrictions w.e.f. 1.4.2001.
As per Auto Policy, announced by
the Government on 7.3.2002, an appropriate long term fiscal structure
shall be put in place to facilitate the acceptance and development
of hybrid and battery operated vehicles (BOVs). Ministry of Non-Conventional
Energy Sources (MNES) is promoting the development and manufacture
of non-polluting environmentally benign Battery Operated Vehicles
in the country under the Alternative Fuels for Surface Transportation
(AFST) programme. They are providing subsidy on the battery driven
10-seater and bigger passenger vehicles upto 50% of the cost of
the vehicles exclusive of customs duty, sales tax and other levies.
This information was given in the
Rajya Sabha by Dr. Vallabhbhai Kathiria, Minister of State for
Heavy Industries and Public Enterprises in a written reply to
a question by Shri K Rama Mohana Rao.
