EVs to get cheaper

New Delhi: The Central government on Wednesday said that to further provide impetus to green mobility, Customs duty exemption is being extended to the import of capital goods and machinery required for manufacture of lithium-ion cells for batteries used in electric vehicles -- a move hailed by the EV industry players. Finance Minister Nirmala Sitharaman in her Union Budget 2023-24 speech said that the subsidies on EV batteries will be extended for one more year, hence making EVs cheaper in the country. In May 2021, the government unveiled the Production-Linked Incentive (PLI) scheme for manufacturing batteries.

To be eligible for the Rs 26,058 crore incentives under the PLI scheme for the EV industry, an automaker must have a global revenue of at least Rs 10,000 crore and have a minimum investment of Rs 3,000 crore in fixed assets. The EV industry and battery players hailed the government's move.

"The proposed Customs duty exemptions on the import of capital goods and machinery required for the manufacturing of lithium-ion batteries bring in a new lease of life for all battery manufacturers," said Pankaj Sharma, Co-Founder and Director, Log9 Materials.

The move would help accelerate the country's production capacity and also gives the much-needed momentum to the country's vision to become self-sufficient in its EV needs, he added. Nirmal K. Minda, Chairman and Managing Director, Uno Minda Ltd, said that the announcement of Rs 35,000 crore fund to support green projects will give a massive boost towards India's net-zero goals.