Interim Budget 2024 Expectations: 6 ways to accelerate India's clean energy transition

In a prelude to the Interim Budget 2024, Rajat Verma, Founder & CEO of Lohum Cleantech, emphasized the crucial role played by last year's budget in providing a significant boost to India's energy transition. With an expenditure of Rs 35,000 crore, the budget prioritized capital investment in energy transition, inter-state grid integration, viability gap funding for battery energy storage systems, and introduced indirect tax revisions to encourage green energy initiatives.

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Looking forward to the upcoming budget, Verma outlined key recommendations to further accelerate India's clean energy transition and establish a circular battery economy. The primary proposals include:

* Reduction in GST on Waste LIBs: Verma advocated for a reduction in the Goods and Services Tax (GST) on waste Lithium Ion Batteries (LIBs) from 18% to 5%, aligning it with the GST on waste Lead Acid Batteries.

* GST Reduction on LIBs: Verma suggested lowering the GST on Lithium Ion Batteries (LIBs) from 18% to 5%, addressing the inverted duty structure created by the current tax rate.

* GST Reduction on Processed Ores of Nickel and Cobalt: Proposing a reduction in GST on processed ores of Nickel and Cobalt from 18% to 5%, Verma highlighted the need for rationalization, especially considering India's lack of reserves and mining for these minerals.

* Custom Duty on Cobalt & Nickel Ores: Verma recommended decreasing the custom duty on Cobalt and Nickel ores and concentrates from 2.5% to 0% to further support the clean energy ecosystem.

* In addition to these specific proposals, Verma anticipates the introduction of pivotal schemes in the budget, such as the extension of the FAME scheme to FAME 3. 

* He also expects a comprehensive scheme focusing on the manufacturing, refining, recycling, and midstream processing of critical materials essential for the clean energy sector. 

The upcoming budget announcement is eagerly awaited for its potential impact on advancing India's sustainable energy goals.

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• Budget 2024
• Budget Expectations
• Clean Energy Transition
• Critical Materials
• Custom Duty
• FAME Scheme
• GST Reduction
• Interim Budget 2024
• LIBs
• Lithium Ion Batteries
• Lohum Cleantech
• Processed Ores
• Rajat Verma