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Union Budget 2023 for Electric Vehicles
The electric vehicle (EV) revolution is gaining momentum, and the latest union budget 2023 has further boosted its growth. The government of India is recognizing the need for a cleaner and greener future, and electric vehicles play a crucial role in achieving this goal. With the latest budget announcements, the government is taking steps to incentivize the adoption of electric vehicles and provide the necessary support to make the transition to EVs seamless and affordable for the general public.
In this article, we will take a closer look at the updates on the electric vehicle budget and what it means for the industry and consumers alike. From subsidies and tax benefits to infrastructure development and research & development, the latest union budget 2023 has several exciting initiatives aimed at promoting the growth of the electric vehicle sector. Get ready to dive into the world of electric vehicles and discover how the latest union budget 2023 updates are shaping the future of mobility.
Subsidy on Batteries
The union budget 2023 has increased the subsidies for electric vehicles to encourage their adoption. Previously, Electric two-wheelers were eligible for a subsidy of up to Rs 15,000 for every kWh of battery capacity, or 40% of its total cost, whichever is lower.
Meanwhile, three-wheelers and passenger vehicles can receive a subsidy of Rs 10,000 per kWh of battery capacity. However, to be eligible for these benefits, the vehicles must meet the localization requirements set by the government.
Energy Transition Investment
The government of India has been focusing on Green energy solutions and this transition will be a big step in the right direction. The finance minister of India Nirmala Sitaranam has announced an investment of 35,000 crores for energy transition investment. The direct stakeholders of this amount would be NTPC, JSW Steel, Tata Steel, and the list goes on.
Reduced Import Duty on Electric Vehicles
Nirmala Sitharaman said, “The customs duty on Lithium-iOn batteries used in electric vehicles has been reduced to 13 percent. Apart from this, excise duty exemption is also being given on natural gas and biogas. This can lead to many foreign EVs being landed on Indian roads.
Investment in Hydrogen Fuel
The government of India has made a substantial investment in the future of clean energy by committing to invest Rs. 19,700 crores in hydrogen fuel. This investment is a clear signal of the government’s commitment to reducing greenhouse gas emissions and promoting the use of clean energy sources. Hydrogen fuel is a clean, renewable energy source that has the potential to revolutionize the energy sector and help achieve a cleaner, greener future.
Tax Reduction
The government has demonstrated a strong commitment to promoting green mobility in the discussion of Budget 2023. One such step is the tax exemptions provided on Lithium-ion batteries and raw materials, which are critical components in the production of electric vehicles.
Expectations from the Industry leaders
Several EV leaders have shown their desire towards what shall be included for the EVs in the Union Budget 2023-24. Let’s steal some glances over these desires.
FAME II subsidies extension:
CEO and Co-founder of Revamp Motors desire that the FAME II subsidy should be extended so that more adoption of EVs can be done in India.
Reduction in the GST on EVs:
Co-founder of Neuron Energy, Pratik Kamdar said that GST rates should be cut from 18% to 5% on lithium-ion batteries and cells. He said, “We strongly recommend a reduction in custom duty for lithium-ion cells along with research and development incentives for advanced battery technologies and additional subsidies on it.”
PLI Scheme benefits:
The production Linked Incentive scheme also gives a boost to EV manufacturers. Thus many leaders said that this should also be extended.
Relaxation on the FDI norms:
EV leaders anticipated that if we relax FDI norms then it can give a push to the Investment which in turn will create more demand for EVs.
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