Reducing customs duty on solar cells, lengthening ALMM, and shortening project implementation time are deemed necessary to support indigenous solar manufacturing and global sustainability.
With Budget 2024 approaching, India’s Electric Vehicle (EV) industry anticipates a transformative role in the transportation sector. Priorities include upskilling via centrally sponsored schemes, fostering a skilled workforce. Sustainable growth relies on technological innovation, especially in Battery Management Systems (BMS), and building domestic capabilities for battery manufacturing. Government funding for charging infrastructure in Tier II and Tier III cities is crucial for EV evolution.
The industry suggests open data standards, APIs, and reducing GST on lithium batteries from 18% to 5% to boost EV affordability. Promoting ICE+EV hybrid vehicles, especially in smaller segments, is vital for economies of scale. State and Central Government policies, including Production-Linked Incentives for EV charging companies, tax deductions for EV buyers, and the potential introduction of FAME-III, emphasise a steadfast commitment to a green transition.
The automotive industry eagerly awaits insights into the GST landscape, especially for entry-level two-wheelers. Expectations centre around potential FAME 3 schemes and a revision of GST rates for electric two-wheelers. Calls for a uniform 5% GST on all EV spare parts echo the industry’s aspiration for a more equitable tax structure. Advocacy for innovation-centric initiatives and capacity-building incentives are paramount for widespread EV adoption. The recommendation to lower the GST rate on batteries from 18% to 5% aligns battery swapping and subscription services with EVs, representing a crucial step forward.
Addressing Key Imperatives
Concerns about solar panel imports prompt calls for measures supporting indigenous development, tech transfer, and incentives for local manufacturing to curb foreign exchange outflow. The industry deems PLI for renewable manufacturing and viability gap funding for battery storage crucial for India’s energy goals. Revision of GST rates and increased budget for batteries under PLI are pressing needs. Workforce development, bulk procurement, and energy storage solutions are essential for sector efficiency. Infrastructure strengthening, public-private partnerships, and streamlined regulations are key enablers for a sustainable energy future.
Anticipated collaborations for solar integration in new homes and green FDI initiatives. Recommendations include reduced customs duties on solar imports, enhanced concessional finance, and a dedicated agency for sector investments. Critical steps involve addressing state restrictions on transformer capacity, advocating unrestricted net metering, and extending ISTS waiver.