Duty exemption on EV batteries hailed, but blanket scrapping of govt vehicles a concern

Industry experts have welcomed the push for green mobility in the budget that has exempted customs duty on the import of capital goods and machinery needed for the production of lithium-ion batteries.
For representational purposes
For representational purposes

BENGALURU: While the Union Budget has allotted Rs 2,000 crore to states to scrap old vehicles of state governments, experts have said that the replacement should be based on an inspection of pollution emitted and not on the basis of the number of years the vehicle has run. If the vehicle is roadworthy and its pollution is under control, they argue that there is no need to scrap it and said this will only improve the business of private manufacturers.

Ashish Verma, professor of Transportation Systems Engineering, Convenor, Sustainable Transportation (IST) Lab at the Indian Institute of Science (IISc), Bengaluru, said: “Vehicles owned by the government and by the public should not be scrapped just for the simple reason that they have crossed 15 years. It should be scrapped if and only if the vehicle’s emission is out of control and the vehicle is certified as not road worthy.” Blanket scrapping of 15-year-old vehicles will only help private vehicle manufacturers, he cautioned.

Industry experts have welcomed the push for green mobility in the budget that has exempted customs duty on the import of capital goods and machinery needed for the production of lithium-ion batteries used in the manufacture of electric vehicles (EVs).

“The announcement of Rs 35,000 crore budget for green transition allocation and the proposal of zero carbon emission goal by 2070 are huge steps forward in promoting India’s progression towards green growth. However, the industry looks forward to the government sharing more insights about the capital expenditure allocation to support the commercial vehicle sector as part of the green growth agenda” said Chetan Maini, co-founder & chairman, of SUN Mobility.

The scrappage of old government vehicles and budgetary allocation towards the same is a positive step in the direction of the zero carbon emission goal, he added.

Arun Sreyas, CEO & co-founder, RACEnergy, said that the duty exemption on the production of lithium-ion batteries will fuel the development of the country’s EV sector, allowing for the establishment of battery production facilities within India and, in turn, contributing to sustainable mobility.

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