The Union Budget for the financial year 2023-24 was presented by the Finance Minister Nirmala Sitharaman at the Parliament today. As per the minister's budget speech, 'Green growth' has been identified as one of the seven priorities of the latest budget, with a series of measures to further India's 'Panchamrit' vision and achieve net-zero carbon emission by 2070 to usher in green industrial and economic transition.
As far as energy storage, e-mobility, and hydrogen industries are concerned, here are the following announcements from the latest budget:
- To steer the economy on the sustainable development path, Battery Energy Storage Systems (BESS) with capacity of 4,000 MWH to be supported with Viability Gap Funding.
- For the first time, a detailed framework for Pumped Storage Projects is to be formulated by the government.
- The budget provides for ₹ 35,000 crore priority capital investments towards energy transition and net zero objectives, and energy security by Ministry of Petroleum & Natural Gas.
- Exemption in basic customs duties on Specified
capital goods and machinery for the manufacturing of Lithium-ion cell for use in battery
of electric vehicle (EVs) valid till 31-03-2024. This will reduce input costs, deepen value addition, promote export competitiveness, and correct inverted duty structure so as to boost domestic manufacturing, according to the FM.
- Target of 5 MMT annual production of hydrogen by 2030 under National Green Hydrogen Mission, which was previously announced by the Union government with an outlay of ₹ 19,700 crores. The government opines that the mission will facilitate transition of the economy to low carbon intensity and reduce dependence on fossil fuel imports, thereby making the country assume technology and market leadership in this sunrise sector.
- The inter-state transmission system for evacuation and grid integration of 13 GW renewable energy from Ladakh to be constructed.
Further, the government has revised custom duties for EV imports in select categories. It is likely that the following measures are taken to boost local manufacturing of the electric vehicles at the cost of fully- or partially-built imports of EVs by automakers.
- Custom duty for electric vehicles in Semi-Knocked Down (SKD) form increased from 30 to 35 percent.
- Custom duty for electrically operated vehicle in Completely Built Unit (CBU) form, other than with CIF value more than USD 40,000, increased from 60 to 70 percent.
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