Union Budget 2022:EV sector
In the fourth Union Budget 2022 speech on Tuesday, Finance Minister Nirmala Sitharaman has emphasized large-scale infrastructure construction for electric vehicles. Below are some highlights of budget 2022 for EV sector:
Battery Swapping Policy
In her budget speech, the Union Finance Minister announced that the government would soon bring a Battery Swapping Policy. The advantage of the battery swapping facility will be that the problem of battery charging in Electric Vehicles (EVs) will be eliminated. Also, any EV vehicle owner can replace his discharged battery with a fully charged battery. With the introduction of this policy of the government, the hesitation among people to buy electric vehicles will be eliminated and this will boost the EV adoption rate in the country.
What is Battery Swapping?
Just like you go to the filling station or fuel station to fill petrol, diesel, or CNG in your car, similarly, you will have to go to the swapping station of the companies after the battery swapping policy of the government. There you will have to give your old discharged battery, in return for which you will get a full charge second battery. Several brands of batteries will be available at the swapping station, where multiple batteries will be charged simultaneously. In return, you will have to pay the bill for the fully charged battery.
Promotion of green technology in public transport
The Finance Minister, during her speech for the Budget 2022-23, said that the policy is being brought keeping in mind the paucity of space in urban areas to set up charging stations. Apart from this, she also said that the government will prepare interoperability standards. At the same time, with the improvement of EV infrastructure, green technology will be promoted in public transport. With the advent of the battery swapping policy, the government will encourage the private sector to manufacture batteries. In his speech, he also said that the government will create special mobility zones for the development of e-vehicles. India has set a target of 30 percent EV sales by 2030 for private cars, 70 percent for commercial vehicles, 40 percent for buses, and 80 percent for two- and three-wheelers.
Zero fossil fuel policy will be introduced soon
The Finance Minister also said there would soon be areas in Indian cities where ICE vehicles could be banned. A dedicated transportation area will be established to ease the transition of public transportation into green vehicles in urban areas. The government is also planning to introduce a zero fossil fuel policy to boost green vehicle adoption across the country.
Aids and Incentives to expand EV ecosystem
Tax benefits on lithium-ion batteries in the budget which is an important export item will lower the cost of electric car production. An incentive of Rs 1.5 lakh was added to cover the inflation cost. With the current GST of 18% additional components, FAME benefits are given to vehicles without batteries and these vehicles receive an additional subsidy. It provides incentives for the local production of lithium-ion batteries and allocates funds for research and development of other battery production options, such as aluminum-air batteries. By implementing a scrappage policy, the government will allocate money to keep the 2021 budget running smoothly. Tracking will be done to check the state's responsibility for creating reverse EV infrastructure and introducing "green" taxes to pace up the usage of e-vehicles.
There are only 1,028 public charging stations currently available across the country
According to the Ministry of Road Transport and Highways (MoRTH) data, there are 9,74,313 registered electric vehicles in India. But according to the Bureau of Energy Efficiency (BEE), as compared to the number of EV trains, only 1,028 public charging stations (PCS) have been installed across the country so far. One of the major reasons for the slow sales of electric vehicles in the country is the cost of electric vehicles and the lack of charging infrastructure.
Companies are preparing for the Battery Swapping policy
In many states, private companies have started building battery swapping stations to exchange batteries. India's Reliance Industries and UK's BP Plc have formed a joint venture for battery swapping in the country. Apart from this, Hero MotoCorp and Gogoro of Taiwan have also partnered for battery swapping. At the same time, Indian Oil has also started a battery swapping facility for electric vehicles. IOC has made this facility available under a pilot project at a petrol pump in Chandigarh, from where one can take a fully charged battery instead of a discharged battery within minutes. After which this facility will be launched in other cities including Delhi, Gurugram. Commercial vehicles like electric auto, electric rickshaw, and electric two-wheeler will get the benefit from this facility. At the same time, factory-fitted electric vehicles will also be able to take advantage of the battery swapping facility.
What will be the benefit?
The biggest advantage of this will be that your time will be saved. Generally, it takes 8 to 10 hours to charge the battery of an EV with a normal charger, whereas, with a fast charger, the battery gets fully charged in one and a half to two hours. On the other hand, if there is a crowd at the charging station, then you may have to wait a long time. But by swapping the batteries at the battery swapping station, you will be able to avoid this hassle and reach your destination faster. Also, you will be able to cover long distances comfortably.