This is undoubtedly a future-looking announcement which will help India to become one of the prominent players in the green hydrogen space and thus reducing the dependency on lithium. With the budget allocated to the energy transition, we will see a lot of businesses turning to EV fleets. A green credit system will ensure that the startups and MNCs who is working for making the planet a sustainable place to live are incentivized.
The viability gap funding will ensure that new battery tech will get supported in the early days before it attains economies of scale.
Customs exemption on capital goods and machinery for lithium batteries will reduce the per kilowatt-hour cost of batteries and thus accelerate EV adoption in both personal and commercial segments.
Visakh Sasikumar, CEO & Co-founder, Fyn mobility
The Union budget clearly shows the commitment of the central government to achieve the net zero emission goal of 2070. The budget expectations that we had from EV industry perspective will completely be met if the implementation of the budget is done properly at the grass root level. Both the incentives and packages defined for Agritech and EV-related innovations in the country are truly promising to expect high growth from the rural to the urban areas.
Startups/MSME’s working in these two areas are the real catalyst for the growth of the entire nation, so it will be interesting to look at how smoothly they are provided access to the benefits announced in today’s budget. After listening to the budget today, we can say that India as a nation is truly spearheading the innovation required to fight climate change in all sectors and it is hardly a matter of a few years now when India will be know as the leader in making the right efforts to save the planet from the climate change challenges it is going through, exactly like now it is known for saving the world from the threat of covid by supplying the vaccines.
Mr. Kaustubh Dhonde, Founder & CEO of AutoNxt Automation
The emphasis on green growth and net-zero emissions is the need of the hour as outlined in the Union Budget. The outlay of 35,000 crores for priority capital investments towards energy transition and net-zero goals will boost energy security in India. Further, the decision to support Battery Energy Storage Systems with a capacity of 4,000 MWH with viability gap funding will give a huge impetus to the clean energy sector. One of the most impactful decisions this time is the extension of customs duty exemption for import of capital goods and machinery required to produce lithium-ion batteries for EVs in India. This move will reduce the initial capital investment needs for the battery manufacturers and is also likely to make the batteries become cheaper as there will be a larger manufacturing base for them. Concession on duty on lithium-ion cells import for EV batteries has also been extended for another year, which would lead to greater EV adoption in 2023. Similarly, basic customs duty exemption on raw materials required for manufacturing of nickel cathode used in the batteries has also been continued.
Improving the ease of doing business by reducing 39,000 compliances, and the decision to provide greater funding to state governments to replace old polluting vehicles are also welcome steps. It is expected that these old vehicles will be replaced with EVs and that would improve their adoption in the country. The establishment of 100 National Skill Development Centers will ensure that a larger number of youth across India are trained on advanced technologies and made ready to work in the climate-tech sector. All these are great initiatives, and if this momentum is further supported by the unveiling of the final draft for the Battery Swapping Policy, we will be able to witness accelerated growth of clean mobility in India.
Mr. Varun Goenka, CEO & Co- Founder, Chargeup
The Union Budget for 2023-2024 has a strong focus on green growth and sustainability. The “Green Growth” priority sector is a step towards India’s resolve to achieve Net Zero by 2070. The government has granted infrastructure status to the EV sector, paving the way for easier access to credit for companies making EV components. This will reduce production costs and help expand India’s manufacturing capabilities in this sector. The scheme announced to scrap old vehicles and replace the old polluting vehicles will encourage more people to switch over from petrol/diesel cars to electric ones. The Indian Government is committed towards introducing green mobility solutions such as e-rickshaws, e-bicycles, and other clean energy transport systems in cities across the country with an emphasis on green growth with focus on green fuel. We are delighted to see such initiatives included in the Union Budget 2023.
Mr.Tushar Choudhary, Founder & CEO, of Motovolt Mobility
We welcome the Union Budget 2023-2024’s strong emphasis on green growth and sustainability. This budget will be used to encourage investments in renewable energy sources, reduce carbon emissions, and increase energy efficiency. One of the key aspects of this is the launch of a Rs 2,200 crore Aatmanirbhar clean plan program. This is a clear indication of the government’s commitment to reducing India’s estimated total carbon emissions by 1 billion tonnes by the end of the decade. The government’s aspirations to achieve net-zero carbon emissions by 2070 and reduce the country’s carbon intensity by 45% by 2030 are also significant steps in this direction. The government plans to develop an integrated sustainable development system that includes measures such as electric vehicles, waste management systems, water conservation projects, and solar power plants. Furthermore, the budget also promises increased funding for research and development of clean technology solutions including green hydrogen production facilities. The government’s decision to exempt excise duty on GST-paid compressed biogas containment will give a boost to the green mobility sector. Also, custom duty exemption on the import of lithium-ion batteries will continue to focus on the transition to electric mobility. Overall this Budget will help India achieve its commitment to a low-carbon economy while achieving economic growth at the same time. It is expected that these initiatives will help create employment opportunities as well as attract foreign investment into India’s economy.
Mr. Ankit Kedia, Founder & Lead Investor, Capital A
It is good to see “Green Growth” among the 7 priority areas announced in the budget by the FM. Rs 35,000 crore has been allotted for priority capital investment in the green energy transition. This is in the direction of India seeking a leadership role in mitigating the global climate crisis.
India plans to electrify 70% of commercial vehicles, 30% of passenger cars, and 80% of the total 2Ws and 3Ws by 2030. Our Li-ion battery demand is currently 3 GWh and is set to grow to 70 GWh by 2030. At present, we are importing almost 70% of our Li-ion cell requirement from China and Hong Kong. With customs duty exemption being extended to the import of capital goods and machinery required for manufacturing of lithium-ion cells for batteries used in EVs, the government is clearly encouraging local cell manufacturing in the country and reduce dependency on imports.
