Union Budget 2023 may announce sops for domestic EVs and storage solutions

Custom duty exemptions being provided for lithium-ion cells for making phone battery packs could be extended to EV batteries and energy storage solutions as well

In the upcoming Union Budget 2023-24, the central government is considering announcing incentives to promote the domestic production of electric vehicles (EVs) and energy storage systems (ESS), reported the Economic Times citing official.

According to the report, the aim is to help India achieve its electric mobility targets. 

Additionally, the government may reduce the existing import fee of 5 per cent to 20 per cent on various parts used to make lithium-ion batteries.

The official said that discussions are happening regarding enhancing the manufacturing of the entire ecosystem related to electric transportation. Some proposals on reviewing the duties are being examined,