India’s Efforts to Transform Battery Storage and Mobility Value-Chain
In March 2019, Union Cabinet approved setting up of a National Mission on Transformative Mobility and Battery Storage, to drive clean, connected, shared, sustainable and holistic mobility initiatives. The mission is to draw up a five-year phased manufacturing program (PMP) till 2024 to support setting up a few large-scale, export-competitive integrated batteries and cell-manufacturing Giga plants in India and to localize production across the entire Electric Vehicles value chain.
The earlier proposed capacity build-up target for lithium-ion battery-manufacturing base has been raised to 50GW from previously stated 40GW. The Government is in process to open tenders soon to set up 50GW battery manufacturing base at around USD 50 billion investment. To support this, the Government is offering financial incentives in form of subsidies and duty cuts, which could include reduction in minimum alternate tax to half and import and export duty waivers or cuts for eight years. The successful bidder companies will have to set up production facilities by 2022 and can avail incentives until 2030.
NITI Aayog (National Institute for Transforming India), the premier policy think tank of the Government of India is working to seek proposals from states to identify locations for plants and to provide duty waivers and exemptions to selected manufacturers. The states will be asked to reduce state GST, provide concessional electricity, and facilitate land acquisition, single-window clearance and environmental clearance.
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