Government pledges to enhance electric vehicle ecosystem with infrastructure assistance in Budget 2024
In today’s Budget 2024 speech, Finance Minister Nirmala Sitharaman announced the government’s intention to strengthen the electric vehicle (EV) industry by offering assistance for charging and manufacturing infrastructure nationwide. Sitharaman, in her pre-election Budget, highlighted the promotion of electric buses in public transportation networks as a crucial element of this plan.
– Our government is committed to expanding and strengthening the ecosystem of electric vehicles by actively supporting the manufacturing and charging infrastructure, the Minister of Finance stated. In addition, he emphasized the intention to promote the introduction of electric buses in public transport by implementing payment security mechanisms.
Mandatory mixing and environmentally friendly options
Sitharaman emphasized that the mandatory mixing of pressurized biogas with pressurized natural gas in transportation and piped natural gas will come into effect. In addition, he announced the launch of the Biomanufacturing and Bio Foundry program, which aims to offer environmentally friendly alternatives to biodegradable production.
Unmet expectations and industry concerns
While acknowledging the positive aspects of the interim budget, Quantum Energy CEO Chakravarthi C expressed some unfulfilled expectations. In particular, he highlighted expectations for the extension of the FAME II subsidy program after its impending expiry in March 2024. This extension, which is in line with the government’s ambitious 2030 target of having 30 per cent electric cars on Indian roads, would have further supported the EV industry.
Chakravarthi also highlighted the potential benefits of a substantial reduction in GST on lithium-ion batteries and cells, advocating a reduction from 18% to 5%. He argued that this reduction would have eased manufacturing costs and made EVs more competitive, thereby promoting increased consumer adoption.
The absence of a standardized policy for the battery replacement market was seen by Chakravarth as a missed opportunity, PTI reported.
Seafund’s founder and CEO Mayuresh Raut, on the other hand, considered solar rooftop systems to be a significant addition. Raut emphasized that these plans will not only contribute to the achievement of clean energy goals, but will allow India to address the current barriers to the wider adoption of electric vehicles, especially charging infrastructure.
Mayank Bindal, Founder and CEO of Snap E Cabs, hailed the government’s visionary initiative, stating that it will not only accelerate the transition to sustainable transport, but also promote innovation and job creation in the electric vehicle sector.
