{"id":39,"date":"2020-10-17T09:54:20","date_gmt":"2020-10-17T04:24:20","guid":{"rendered":"http:\/\/localhost\/wordpress\/?p=39"},"modified":"2021-06-19T11:49:36","modified_gmt":"2021-06-19T06:19:36","slug":"39","status":"publish","type":"post","link":"https:\/\/vahanmaster.com\/?p=39","title":{"rendered":"India plans $4.6 billion in incentives to lure EV battery makers"},"content":{"rendered":"\n

OFFICIAL<\/a><\/p>\n\n\n\n

And in so doing could cut oil imports by $40 billion<\/h2>\n\n\n\n
\"\"\/<\/a><\/figure>\n\n\n\n

REUTERS<\/a>Sep 27th 2020 at 10:00AM<\/p>\n\n\n\n

The Mahindra Funster electric concept vehicle<\/a> is displayed at Auto Expo 2020 in February 2020 in Greater Noida, India<\/a>. (Getty Images)<\/em><\/p>\n\n\n\n

NEW DELHI \u2014 India plans to offer $4.6 billion in incentives to companies setting up advanced battery manufacturing facilities as it seeks to promote the use of electric vehicles<\/a> and cut down its dependence on oil, according to a government proposal seen by Reuters.<\/p>\n\n\n\n

A proposal drafted by NITI Aayog, a federal think tank chaired by Prime Minister Narendra Modi, said India could slash its oil import bills by as much as $40 billion by 2030 if electric vehicles were widely adopted.<\/p>\n\n\n\n

The proposal is likely to be reviewed by Modi’s cabinet in the coming weeks, said a senior government official, who was not authorized to comment on the matter and declined to be identified. NITI Aayog and the Indian government did not respond to requests for comment.<\/p>\n\n\n\n

The think tank recommended incentives of $4.6 billion by 2030 for companies manufacturing advanced batteries, starting with cash and infrastructure incentives of 9 billion rupees ($122 million) in the next financial year which would then be ratcheted up annually.<\/p>\n\n\n\n

“Currently, the battery energy storage industry is at a very nascent stage in India with investors being a little apprehensive to invest in a sunrise industry,” the proposal said.<\/p>\n\n\n\n

India plans to retain its import tax rate of 5% for certain types of batteries, including batteries for electric vehicles, until 2022, but will increase it to 15% thereafter to promote local manufacturing, the document said.<\/p>\n\n\n\n

Though keen to reduce its oil dependence and cut down on pollution, India’s efforts to promote electric vehicles have been stymied by a lack of investment in manufacturing and infrastructure such as charging stations. Just 3,400 electric cars<\/a> were sold in the world’s second-most populous nation during the last business year, compared to sales of 1.7 million conventional passenger cars.<\/p>\n\n\n\n

The policy could benefit battery makers such as South Korea’s LG Chem and Japan’s Panasonic Corp as well as automakers which have started building EVs<\/a> in India such as Tata<\/a> Motors and Mahindra & Mahindra.<\/p>\n\n\n\n

While China accounts for 80% of the world’s lithium-ion cell production, India has introduced stricter investment rules for Chinese companies. It has also slowed down the approval process for some proposals after a deadly border clash between the two countries in June.<\/p>\n\n\n\n

The draft proposal said annual domestic demand for battery storage and market size \u2014 currently less than 50 gigawatt hours and worth just over to $2<\/a> billion \u2014 could grow to 230<\/a> gigawatt hours and more than $14 billion in ten years time.<\/p>\n\n\n\n

It did not offer an estimate of how many electric cars it expected to be on the road by 2030.<\/p>\n\n\n\n

The proposal estimates it would cost firms some $6 billion over five years to set up manufacturing facilities with the support of government subsidies.<\/p>\n\n\n\n

NITI Aayog has been the driver of several key India government policies including the planned privatizations of a swathe of state-owned companies.<\/p>\n\n\n\n

(Reporting by Neha Arora and Aftab Ahmed; Additional reporting by Aditi Shah; Editing by Aditya Kalra and Edwina Gibbs)<\/p>\n","protected":false},"excerpt":{"rendered":"

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