- The plan is supported by NITI Aayog and looks to accomplish what Tesla has done at its Gigafactory in Nevada, US
- As part of the plan, the govt may offer a raft of incentives to manufacturers such as concessional financing options
- Govt may also offer an output-linked subsidy on a kilowatt-hour (KWh) of cells sold
- Apart from EVs, such battery storages will cater to the consumer electronics industry and electricity grids
India is putting the final shape on a plan to build at least four Tesla-style giga factories to manufacture batteries with an investment of around $4 billion, reported Mint. This news comes at a time when the country is preparing to switch to electric vehicles to curb pollution and cut its dependence on foreign oil.
Aimed at securing India’s energy needs, the plan to set up these factories of 10 gigawatt-hours (GWh) each is being helmed by federal policy think tank NITI Aayog and looks to accomplish what Tesla has done at its Gigafactory in Nevada, US.
Benefits galore
As part of the plan, the government may offer a raft of incentives to manufacturers such as concessional financing options with around 3 per cent foreign exchange hedge on overseas loans and a fixed 3 per cent interest subvention on loans availed in Indian rupees. In addition, a reduction in minimum alternate tax (MAT) may be offered.
According to information reviewed by Mint, the support extended by the government for advanced chemistry cells and battery manufacturing may also include an investment-linked tax incentive under Section 35 AD, a deemed infrastructure status and a suitable basic customs duty safeguard. It may also offer an output-linked subsidy on a kilowatt-hour (KWh) of cells sold.
Apart from electric vehicles, such battery storages will cater to the consumer electronics industry and electricity grids, given the intermittent nature of electricity from clean energy sources such as solar and wind.
