Customs have been cut on the major input as well as solar cells and modules for the manufacture of electric vehicles (EV) batteries. In this way, the budget emphasizes on making the manufacturing price chain more domestic for the major areas of the country’s energy change. During the budget speech, Finance Minister Nirmala Sitharaman said that 35 additional capital goods used in lithium-ion battery manufacturing will now be free from basic customs duty.
Vikram Gulati, country head of Toyota Kirloskar Motor, said, “This will not only accelerate clean technology but will also create a strong supply chain supporting India’s carbon zero by 2070.” Generally, about 30 percent to 40 percent of the total cost of EV is battery. EV currently accounts for about 5 to 6 percent in the sales of two -wheelers in the country, while electric cars account for about 2 to 3 percent in total car sales. Sitharaman also announced that she is giving full discounts from cobalt powder and waste, lithium-ion battery scraps, lead, zinc and 12 other important minerals from the basic customs. In the budget, the fee rate on solar modules, other semiconductor equipment and photovoltaic cell has been reduced from 40 percent to 20 percent, while in terms of hundreds of cells it has been reduced from 25 percent to 20 percent.