New Delhi, Sept. 22 -- India's policy for making and adopting electric vehicles (EVs) is packed with incentives for manufacturers and consumers. Yet, the government's scheme to attract foreign automakers to make EVs in India with a massive import duty cut on completely built-up cars has seen zero takers.

One reason for this is the high bank guarantee criteria in the scheme. Original equipment automakers are required to pay a bank guarantee of at least Rs.4,150 crore, or equal to the amount of import duty foregone.

Though bank guarantees are a crucial public policy tool, this condition has turned into a speed bump too steep to cross. Mint explains how bank guarantees nudge stakeholders in India's ambitious EV drive.

Take two parties, A ...