Government Plans $4.6 Billion In Incentives For Battery Makers In Electric Vehicle Push: Report

A proposal drafted by NITI Aayog said government could slash its oil import bills by as much as $40 billion if electric vehicles were widely adopted.

Government 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 and cut down its dependence on oil, according to a government proposal seen by Reuters.

A proposal drafted by NITI Aayog, chaired by Prime Minister Narendra Modi, said government could slash its oil import bills by as much as $40 billion by 2030 if electric vehicles were widely adopted.

The proposal is likely to be reviewed by PM Modi’s cabinet in the coming weeks, said a senior government official, who was not authorised to comment on the matter and declined to be identified. NITI Aayog and the government did not respond to requests for comment.

The think tank recommended incentives of $4.6 billion by 2030 for companies manufacturing advanced batteries, starting with cash and infrastructure incentives of ₹ 900 crore in the next financial year which would then be ratcheted up annually.

“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.

Government plans to retain its import tax rate of 5 per cent for certain types of batteries, including batteries for electric vehicles, until 2022, but will increase it to 15 per cent thereafter to promote local manufacturing, the document said.

Though keen to reduce its oil dependence and cut down on pollution, government’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 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.

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 in India such as Tata Motors and Mahindra & Mahindra.

While China accounts for 80 per cent of the world’s lithium-ion cell production, India has introduced stricter investment rules for Chinese companies. It has also slowed down the approval processs for some proposals after a border clash between the two countries in June.

The draft proposal said annual domestic demand for battery storage and market size – currently less than 50 gigawatt hours and worth just over to $2 billion – could grow to 230 gigawatt hours and more than $14 billion in ten years.

It did not offer an estimate of how many electric cars it expected to be on the road by 2030.

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

NITI Aayog has been the driver of several key government policies including the planned privatisations of a swathe of state-owned companies.

October 5, 2020

0 responses on "Government Plans $4.6 Billion In Incentives For Battery Makers In Electric Vehicle Push: Report"

Leave a Message

DIYguru is India’s favorite upskilling platform for learners benefiting more than 50,000 enthusiasts across 400+ institutions through our online courses and hands-on training to acquire industry relevant skills. Our programs have been trusted by Robert Bosch, Suzuki, and Hyundai to name a few.

Recognised by

 

Reach Us

  +91-99109-18719
 support@diyguru.org

      

Success Stories

DIYguru Success Stories

Validate Certificate

Subscribe Newsletter

Online Course, Trainings and Industry 4.0 Skills at DIYguru Learning Platform

  1. For Students:ITI / Diploma / B.Tech / M.Tech. / M.S. Research (Mechanical, Electrical, Electronics & EEE Branch)

    FUNDAMENTALS: For First & Second-year students, who are new to science and engineering and are looking to boost their CV / Resume to stand out of the crowd in getting Internships and preparing base for making their future in Automotive & Product Development Industry, the best strategy will be to go with Fundamental Job oriented Certification Courses which includes Fundamentals of Automobile Engineering, Fundamentals of Python for Mechanical Engineers, Motorcycle Engineering Fundamentals, Electrical Machine Fundamentals Training, MATLAB Fundamentals & Additive Manufacturing Fundamentals.

    INTERMEDIATE: For Third-year students who are planning about making their career through Campus Placements in Automotive (Original Equipment Manufacturers – OEMS’s & Electric Vehicle) & Product Development Industry the best strategy, if they have cleared their Job oriented Fundamental DIYguru Certification Courses which we have recommended above for sophomore students would be to go with the Job oriented Electric Vehicle Engineering Nanodegree Program, Vehicle Dynamics, MATLAB, CATIA / Solidworks for CAD and ANSYS – CAE for structural analysis and MSC Adams for Multibody Dynamics Analysis like Suspension and other moving automotive body part and finally Automotive Sketching to boost your knowledge of concepts and software required for Automotive Industry and OEM’s, This will also unable you to boost your resume. Third years is considered vital for your career growth and you can make the best use of time by adding as many certifications in your resume as possible to stand out of the crowd.

    ADVANCED: For Final year students, as they are about to appear for Mechanical Engineering companies interview mainly Automotive / Automation & Product Manufacturing companies, it is best suggested to go withJob oriented Advanced Electric Vehicle Engineering Course and Battery Management System Course if they have already gone there thinking about making their career in EV sector which is growing exponentially and is about to generate 25 lakh jobs by 2025. Electrical & Electronics Engineering students along with Electric Vehicle Fundamental & Advanced Module should go for added Labview Course as well as Specialization in DATA Analytics with Python to have a firm understanding of the subject and open a wide variety of career option in Industrial automation (Industry 4.0)

    For students who have passed out from Engineering / Technology / ITI / Diploma background and are looking to enter into Automotive or Product manufacturing/development industry making sure that they land a job after doing DIYguru Job oriented course.The best use of this platform would be to go with The Job Guaranteed Program or the Job Assistance Program which will enable you to go extensively through the modules to be completed in a particular time frame.

    For Professionals

    For Entrepreneurs who are looking to develop an electric vehicle from beginning till the end of the Product lifecycle i.e. right from the Planning phase and preparing the basic concept note to Market Research to Designing and Analysis of different Electric Vehicle OEM parts and then simulating the components in different software obtaining thermal and fatigue profiles and finally rendering the finished prototype and putting it into manufacturing phase, we have prepared a bundled Industry 4.0 pack which you can buy here – Industry 4.0 Course Package consisting of all required courses with lifetime access.

    For Working Professionals (Employees, HR’s / Managers / Engineers / Professors) who are looking to upskill themselves in Industrial automation and product manufacturing. They can opt for any of the following courses based on their requirements in the industry which they are currently working or looking forward to.

    For Hobbyists who belong from a non-tech background (Commerce / Arts / Law / Hospitality)

    All the courses on the DIYguru platform are project-oriented i.e. after successful completion of any course, you are able to create something out of it, for ex. if you are looking to make an electric car/bike of yourself. We would suggest you go with the Electric Vehicle Engineering Course which will enable you to retrofit a petrol/diesel variant into an electric one. If you are looking to design a super finished model of Buggati Veron, go for the Solidworks course. If you are good at arts and sketching go for the Automotive Sketching course. In case you are looking to repair or troubleshoot your bike/scooter consider opting for Motorcycle Engineering Course. In case you want to start your future journey of beginning a career in Automobile industry you can opt-in this particular manner

     

 

Professionals from 70+ Companies use DIYguru Platform for Upskilling

 

 

Professionals from 70+ Automotive Companies Use DIYguru Platform for Upskilling

 

top
Copyright © DIYguru Education & Research Pvt. Ltd.