Interim budget 2024: Key highlights for EV sector
Finance Minister Nirmala Sitharaman today presented the Union Budget 2024 in Parliament. This was an interim budget as it came just ahead of the Lok Sabha Elections.This is Nirmala Sitharaman's sixth Union Budget. Finance minister has announced plans to bolster EV ecosystem,infrastructure expansion and support for manufacturing.The initiative aims to create jobs and entrepreneurship opportunities and e-buses for public transport.Lets delve into further details.
Electric vehicle ecosystem
In today's budget the Finance minister said that the government will expand the electric vehicle ecosystem to support charging infrastructure.
“Government will help to expand and strengthen the E vehicle ecosystem by supporting manufacturing and charging infrastructure.Greater adoption of E-buses for public transport networks will be encouraged by payment security mechanisms .”the finance minister said. Which is a technical vote on account and popularly termed an Interim budget.
Renewable energy
Using renewable energy sources can make the use of electric vehicles more eco-friendly.The electricity cost can be reduced further if charging is done with the help of renewable energy sources.The finance minister has allocated significant resources to bolster the green energy sector, with focus on harnessing India’s vast offshore wind energy potential.A notable initiative includes Gap funding for the development if 1 gigawatt (GW) of offshore wind energy.Which will play crucial role in diversifying india’s renewable energy portfolio.
Renewable energy has been a key priority for the government to meet India’s growing energy needs while keeping climate considerations in mind.India has increased its solar power capacity by approximately 35 times over the past eight years, and renewable energy capacity now constitutes around 43 percent of the total installed capacity.
Charging Infrastructure
Charging infrastructure is the backbone of the EV industry.
While delivering today's budget our finance minister said ,
“As India moves towards its net zero emission target by 2070,the government will work towards expanding and strengthening the EV ecosystem as well as development of charging infrastructure.”
Public transport
The promotion of electric public transport solutions is critical for lowering emissions in metropolitan areas and improving air quality. Government will be transitioning public transport such as buses to E-buses.The country has a vision of expanding the share of electric vehicle sales to 30% in private cars,70% in commercial vehicles,40% in buses and 80% in two and three wheelers by 2030.
India’s transition to low carbon economy
“To promote green growth,blending of compressed biogas into compressed natural gas for transport and piped natural gas will be mandatory,”the finance minister said.The government will launch a biomanufacturing and bio foundry scheme to provide environment friendly alternatives for biodegradable production.
On JAN 22 Department for promotion of Industry and internal trade (DPIIT)secretary Rajesh kumar Singh said that the development and adoption of electric vehicles play a pivotal role in India’s transition to a low carbon economy.
“The comprehensive vision for 2047 includes a substantial shift towards electric vehicles across various segments, supported by Tax incentives,Production link incentives(PLI) schemes,and mandatory provision of charging infrastructure”Singh said.
Research and development
Today's budget also talked about a corpus of INR 1 Lakh Cr will be established to spur research and development in the country in the sunrise sectors.“For our tech-savvy youth, this will be a golden era. A corpus of INR 1 Lakh Cr will be established with a 50-year interest-free loan. The corpus will provide long-term financing or refinancing with long tenures at low or nil interest rates. This will help the private sector to scale up research in sunrise domains,” Sitharaman said.The move will likely benefit startups.
Increased funding for research and development in battery technology will accelerate research and development activities in local battery technology and it is critical for reducing dependency on imports and cutting EV prices over time.
Summing Up
By embracing these ambitions and enacting meaningful policy measures, it has the potential to be a tremendous accelerator for India's electric vehicle journey. These initiatives, taken together, help to create a climate that promotes the broad adoption and long-term viability of electric cars.
