The India Energy Storage (IESA) has called for a reduction in the goods and services tax (GST) on batteries and electric vehicle charging infrastructure services, as well as battery swapping. The current GST rate for lithium-ion batteries is 18 per cent, while other batteries are taxed at 28 per cent. The IESA is advocating for all batteries to be taxed at 18 per cent and for charging infrastructure and battery swapping services to be reduced to either 5 or 18 per cent from the current 28 per cent.
In preparation for the India Energy Storage Week 2024 (IESW) in New Delhi from July 1-5, 2024, the IESA has submitted a wishlist to the government. This includes expanding production-linked incentive (PLI) schemes for battery components and battery raw materials processing industries. The IESA President, Rahul Walawalkar, praised the government for initiatives such as the ACC-PLI and Auto Components PLI, and suggested further expansion of PLI schemes to support battery recycling initiatives and collaboration with international partners to secure critical raw materials.
The IESA is urging the new government to continue incentivizing the deployment of large-scale battery storage systems and to support research and development in this area to improve performance and reduce costs. Despite the growth of the electric vehicle market, the IESA highlights the need for additional support to overcome barriers such as the lack of charging infrastructure and high upfront costs.
Recommendations from the IESA also include streamlining regulatory processes, providing clear guidelines for clean energy projects, and improving access to affordable financing for clean energy projects through innovative financial mechanisms and incentives for private sector participation. The industry body emphasizes the importance of research and innovation to reduce costs and enhance the efficiency of clean energy technologies, suggesting that public-private partnerships can play a vital role in this regard.
Furthermore, the IESA suggests raising public awareness about the benefits of clean energy and investing in skills development programs. It is essential to continue driving progress in the clean energy sector to achieve sustainable and cost-effective solutions.