New Delhi, Feb. 21 -- As Tesla prepares to enter India this year, the government is likely working on to modify the terms of a new policy that promotes manufacturing of electric vehicles (EVs) in the country.

In a bid to attract the likes of Tesla, the tweaked EV policy may mandate carmakers to show a turnover of Rs 2,500 crore in the second year itself, as per sources. Centre may also offer further import duty relief.

The government is likely to start accepting applications after the updated EV policy is notified in mid-March. The approvals are likely to be given by August and imports to start soon after, reliable sources added.

Elon Musk-run Tesla will not immediately start manufacturing in the country but rely on imports from its Be...