InvestorQ : Can you tell me about the $4.6 billion incentives offered for battery manufacturing?
sarah Leo made post

Can you tell me about the $4.6 billion incentives offered for battery manufacturing?

Answer
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Rashi Mehra answered.
3 weeks ago


Indian government has committed to offer $4.6 billion in incentives to companies setting up advanced battery manufacturing facilities. The idea here is to promote the usage of electric vehicles and reduce the dependence on oil and other fossil fuels.

The broad plan of the government is to slash its oil import bills by $40 billion by the 2030 if electric vehicles became widespread in India. But for that the battery infrastructure has to be readied. It will be a mix of cash based incentives and infra based incentives.

India plans increase its import tax rate on certain types of batteries from 5% to 15% to encourage local manufacture after 2022. Last financial year saw just 3400 electric cars being sold and that has to multiply manifold.

In India, Tata Motors and M&M have already started building EVs aggressively. The government subsidy support will peg the cost of setting up manufacturing facilities at around $6 billion over five years.