The upcoming Budget 2024 in India carries significant expectations from the recycling and electric vehicle (EV) sectors. Key stakeholders are advocating for policies that promote sustainability and economic viability. From reducing GST on lithium-ion batteries to extending the FAME program and supporting green energy projects, these measures are crucial for advancing India’s clean energy and net-zero emissions goals.
Mr. Niranjan Nayak, Managing Director of Delta Electronics India, expressed expectations for transformative reforms in the auto sector aimed at fostering a green and sustainable energy segment. Nayak highlighted the critical need for PLI schemes specifically for EV charging companies and tax reforms to support the industry. Developing a robust EV charging ecosystem, particularly in Tier II and Tier III cities, and prioritizing open data standards and APIs for charging networks were identified as vital steps. Delta Electronics India is committed to providing innovative and efficient charging solutions, and supportive budget measures would further strengthen the charging infrastructure and pave the way for a sustainable future.
Mr. Akash Gupta, Co-founder and CEO of Zypp Electric, stressed the necessity of policy continuity to achieve net-zero carbon emissions. Gupta suggested that inclusion in the priority lending scheme and reducing GST for EV services from 18% to 5% would accelerate EV-led delivery adoption. He also emphasized the importance of recognizing last-mile delivery as a distinct sector under logistics policies, establishing industry standards, and supporting gig delivery partners with tailored schemes. An extension of the existing EMPS scheme, along with increased government support in driving localization and infrastructural advancements, would enhance efficiency and foster growth in the EV sector.
Prassann Daphal, CEO of Recyclekaro, a renowned e-waste management and lithium-ion battery recycling company in India, expressed key expectations for the recycling industry in the upcoming Budget 2024. He emphasized the importance of promoting sustainability and enhancing economic viability in the battery recycling sector. Among the key expectations is the reduction of GST on waste lithium-ion batteries from 18% to 5%, aligning it with the GST rate on lead-acid batteries. This adjustment is anticipated to correct the inverted duty structure and make recycling processes more economically viable. Additionally, stakeholders are pushing for the extension and possible expansion of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) program, which is crucial for sustaining the momentum behind EV adoption and encouraging battery recycling.
The government’s goal of having 30% electric vehicles on the road by 2030 relies heavily on the expansion of the FAME program. A specialized Production-Linked Incentive (PLI) scheme for recycling lithium-ion batteries is also being advocated. This program would support the growth of the recycling industry and significantly contribute to India’s sustainability objectives. Further incentives for renewable energy projects, including battery recycling, are anticipated, as they are vital for the clean energy transition and the circular economy.
Inderveer Singh, CEO and Founder of EVage, noted that although the Union Minister of Heavy Industry indicated that the FAME III norms are unlikely to be announced in the upcoming budget, there is still hope that some provisions might be included. Singh emphasized the importance of decarbonizing the commercial vehicle segment, which accounts for 65-70% of total vehicular pollution, and highlighted the need for government intervention to achieve India’s goal of 30% electric vehicle sales by 2030.
Mr. Hyder Khan, Director and CEO of Godawari Electric Motors, emphasized the need for continued support and substantial policy enhancements to accelerate the transition to sustainable transportation. Khan urged the government to consider increased subsidies for electric two-wheelers and three-wheelers, as well as incentives for domestic manufacturing and R&D initiatives. Investments in charging infrastructure and battery technology were deemed crucial to overcoming barriers to widespread EV adoption. Khan expressed hope that the upcoming budget would reflect a strong commitment to fostering innovation and growth within the EV sector, ultimately contributing to a greener and more sustainable future for India.
The upcoming Budget 2024 holds significant expectations for the recycling and EV sectors in India. Key stakeholders are advocating for policy adjustments and incentives that promote sustainability, economic viability, and the growth of green energy projects. With the right fiscal measures, India can make substantial strides toward achieving its clean energy and net-zero emissions goals, fostering a greener and more sustainable future for the nation.
