The Commerce Ministry has emphasised the need to address concerns regarding the affordability and efficiency of electric vehicle infrastructure and batteries during the upcoming Union Budget for the fiscal 2025-26. according to people familiar with the matter.
The ministry highlighted this as a key focus for the upcoming Budget to ensure the sector's sustainable growth, the people quoted above told NDTV Profit.
Officials believe that while domestic capacity and consumption are poised for growth, efforts must also target developing export capabilities. The ministry sees this as critical for positioning India as a global EV hub, the people said. Certain demands are under consideration and will only be nailed down closer to the Budget date, which is Feb. 1
In the run up to this year's Budget, the EV industry has demanded ‘infrastructure' status for the sector, as well as bringing EVs and associated charging infrastructure under the Priority Sector Lending framework.
However, last week, Union Commerce and Industry Minister Piyush Goyal said that the EV industry no longer requires additional subsidies or incentives, meaning that the potential boost for the sector might not come in the form of direct monetary benefits.
The government had extended its existing EV scheme, initially set to expire in March 2022, until July 31, 2024. However, with strong demand in the sector, the government has maintained that no new subsidies are needed.
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