Interim Budget 2024 Expectations: EV Industry seeks bold initiatives, strategic allocations

In anticipation of Budget 2024, GreenCell Mobility's CEO, Devndra Chawla, has proposed key measures to boost India's electric vehicle (EV) market

Team Asianet Newsable

First Published Jan 29, 2024, 8:42 AM IST | Last Updated Jan 29, 2024, 8:42 AM IST

Ahead of the Interim Budget 2024 presentation, Devndra Chawla, the CEO and Managing Director of GreenCell Mobility has laid out essential imperatives crucial for the sustained growth of India's vibrant electric vehicle (EV) market. Highlighting the need for long-term development, Chawla has proposed several significant recommendations to the government. Foremost among them is securing permanent viability gap funding for financially strained State Transport Units (STUs) and establishing credit guarantee systems to mitigate lending risks.

The GreenCell Mobility CEO stressed the importance of according an infrastructure sector tag for financing electric mobility projects, along with proposing a capital expenditure subsidy for private bus operators engaged in deploying e-buses on intercity routes. Furthermore, he called for categorizing e-mobility loans as Priority Sector Lending and introducing incentives for battery recycling to reduce interest rates and foster sustainability.

Addressing the need for standardization, Chawla emphasized the importance of Green Energy Open Access Rules, toll exemptions for e-buses, and setting consistent prices for e-bus depots to create a conducive environment.

Additional initiatives proposed include wayside charging infrastructure on national highways, specialized facilities at transport hubs, and strategic highway adoption plans for pure e-bus operations, showcasing GreenCell Mobility's commitment to sustainable mobility. The plan also includes opening up STU depots to private e-buses, streamlining freight transportation, and optimizing charging costs through regulatory measures, aligning with the national commitment to environmentally friendly solutions.

Chawla lauded the success of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) subsidy, particularly FAME 2, with a budget of Rs 10,000 crore. As of December 21, 2023, FAME 2 has subsidized approximately 12,16,380 autos, amounting to Rs 5,422 crore, underscoring its significant impact.

The CEO also commended the government's commitment to boosting manufacturing and exports, evident through Production-Linked Incentive (PLI) schemes for automobiles, auto components, Advanced Chemistry Cell (ACC), and battery storage.

In a bid to enhance cost-effectiveness and sustainability, GreenCell Mobility strongly recommended a 5% Goods and Services Tax (GST) on lithium-ion batteries, EV spare parts, and components. The CEO highlighted the critical need for standardizing battery switching and addressing low-cost finance challenges to ensure the industry's long-term growth.

Acknowledging the government's achievements in alternate fuels, renewable energy, and manufacturing through PLI programs like the Biofuel Policy and National Green Hydrogen Policy, with a potential investment exceeding Rs 8 trillion, Chawla emphasized the significance of these projects.

Recognizing the surging demand for electric vehicles, Chawla stressed the importance of coordinated efforts to develop e-mobility infrastructure, particularly charging stations. He also urged the government to continue the support and come up with pragmatic initiatives to propel the EV industry to unprecedented heights of success.

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