In anticipation for Budget 2024, we have focused on essential imperatives critical to the long-term development of India’s dynamic electric vehicle (EV) market. One significant recommendation is to secure permanent viability gap funding for financially pressured State Transport Units (STUs) and to develop credit guarantee systems to reduce lending risks. We emphasise the importance of an infrastructure sector tag for financing to electric mobility projects and propose a capital expenditure subsidy for private bus operators that deploy e-buses on intercity routes. Categorising e-mobility loans as Priority Sector Lending and introducing incentives for battery recycling are critical steps towards lowering interest rates and promoting sustainability.
Standardising Green Energy Open Access Rules, toll exemptions for e-buses, and setting consistent prices for e-bus depots are critical to creating a suitable climate. Initiatives such as wayside charging infrastructure on national highways, specialised facilities at transport hubs and strategic highway adoption plans for pure e-bus operations demonstrate our commitment to sustainable mobility. Our entire plan includes opening up STU depots to private e-buses, easing freight transportation, and optimising charging costs through regulatory measures, all of which are consistent with our national commitment to environmentally friendly solutions.
We endorse the ongoing success of FAME subsidy, especially FAME 2, with a Rs 10,000 crore budget. As of December 21, 2023, it has subsidized around 12,16,380 autos for Rs 5,422 crore, highlighting its impactful contribution. The government’s commitment to boosting manufacturing and exports is evident through PLI Schemes for Automobiles, Auto Components, Advanced Chemistry Cell (ACC), and Battery Storage.
To improve cost and sustainability, we strongly propose for a 5% GST on lithium-ion batteries, EV spare parts, and components. Standardising battery switching and tackling low-cost finance difficulties are critical for long-term growth. The government’s achievements in alternate fuels, renewable energy, and manufacturing through PLI programmes like as the Biofuel Policy and National Green Hydrogen Policy, with a potential investment of more than Rs 8 trillion, highlights the importance of these projects.
As the demand for electric cars grows, significant coordination efforts are required to build e-mobility infrastructure, particularly charging stations. A strong infrastructure is essential for supporting the industry’s growth. GreenCell Mobility strongly welcomes Budget 2024, asking continued support and sensible initiatives to take the EV industry to unprecedented heights of success.e