The India Energy Storage Alliance (IESA) has presented a detailed wishlist to the government, advocating for significant tax reforms and increased incentives for the EV batteries and electric vehicle (EV) industries, with the goal of bolstering India’s sustainable energy sector.
India Energy Storage Week 2024 (IESW) is set to take place in New Delhi from July 1–5, and ahead of the event, IESA President Rahul Walawalkar has offered important recommendations to hasten the nation’s shift to sustainable energy alternatives.
The desire for a decrease in the Goods and Services Tax (GST) rates on batteries and EV charging infrastructure is at the heart of IESA’s proposals.
“We are urging the government to bring all batteries under the 18 per cent GST bracket,” Walawalkar stated.
Currently, lithium-ion batteries are taxed at 18 per cent, while other batteries face a higher 28 per cent rate. The industry body also advocates for lowering the GST on charging infrastructure services and battery swapping from the existing 28 per cent to either 5 per cent or 18 per cent.
While commending the government’s initiatives such as the Advanced Chemistry Cell Battery (ACC-PLI) and Auto-PLI schemes, IESA pushed for further expansion of Production-Linked Incentive (PLI) schemes to cover battery components and raw materials processing.
The organisation also highlighted the need for support in battery recycling initiatives and international collaborations to secure critical raw materials.
The IESA’s recommendations extend beyond tax reforms, encompassing a broad spectrum of policy measures.
These include continued incentives for large-scale battery storage systems, streamlined regulatory processes for clean energy projects, and innovative financial mechanisms to overcome the high upfront costs associated with EVs and charging infrastructure.
Emphasising the importance of research and development, the industry body called for greater investment in innovation to drive down costs and improve the efficiency of clean energy technologies.
IESA also stressed the need for public-private partnerships and skills development programs to support the growing clean energy sector.
As India continues its push towards a greener future, these recommendations from IESA could play a crucial role in shaping the country’s energy landscape. With the IESW 2024 on the horizon, all eyes will be on the government’s response to these industry demands.