Start-ups Share Vision for Transformative Reforms in Union Budget 2024: Focus on EV Industry and Renewable Energy Integration

As the nation eagerly awaits the unveiling of the interim Union Budget, scheduled amidst the backdrop of upcoming elections, start-up leaders are vocalizing their expectations and aspirations for transformative reforms. The spotlight is on the Electric Vehicle (EV) industry and the integration of renewable energy, both seen as key players in steering India towards a sustainable and technology-driven future.

Streamlined Incentives and Clarity in Provisions for EV Industry

Nikhil Bhatia, Co-Founder & Chief Strategy Officer, HOP Electric Mobility, emphasizes the need for a streamlined Production-Linked Incentive (PLI) scheme and seeks clarity in provisions to encourage investment and growth in the EV sector. Stakeholders are urging the widening of the scope of the FAME II scheme to foster innovation across diverse EV segments.

A pivotal focus lies on incentivizing in-bound technology transfer and manufacturing capabilities, positioning India as a global hub for EV technology. Anticipating the significance of lithium-ion batteries, there is a collective call for GST reform to enhance cost-competitiveness. Charging infrastructure development, especially through public-private partnerships, is considered crucial for accelerating EV adoption.

The promotion of universal battery charging and swapping infrastructure aims to simplify the user experience and standardize EV charging, paving the way for a sustainable mobility ecosystem aligned with global EV trends.

Renewable Energy Adoption: A Visionary Approach Advocated

Sameer Aggarwal, CEO & Founder, Revfin Services, advocates for a visionary approach towards renewable energy adoption. He highlights the economic opportunity that investing in renewable energy infrastructure presents and underscores its role in powering the nation forward.

Calling for bold steps in incentivizing renewable energy projects and research and development (R&D) initiatives, Mr. Aggarwal envisions a budget that strategically allocates resources to enhance solar and wind power capacities. This not only addresses environmental concerns but also strengthens the nation’s energy security.

As the electric vehicle revolution gains momentum, the integration of renewable energy into the national grid becomes crucial. Allocating budgetary resources for renewable energy is seen as a move that not only powers homes but also fuels the growing electric vehicle segment, creating an ecosystem where clean energy sources drive both transportation and residential needs.

Continuation of FAME II Subsidy and GST Reduction on Li-ion Batteries

Mayank Bindal, Founder & CEO, Snap E Cabs, anticipates the continuation of the FAME II subsidy (Faster Adoption & Manufacturing Electric Vehicles), emphasizing its role in decarbonizing the environment and achieving net-zero goals. Proposing a reduction in GST on Li-ion batteries from 18% to 5%, Bindal believes this will significantly reduce the cost of acquiring EVs, making them more attractive to buyers.

Over the past five years, the government has focused on building robust infrastructure, with expectations of continued improvement and efficient investments in energy, particularly in green and sustainable energy. The focus on transitioning from carbon-dependent to energy-efficient policies aligns with state government initiatives, such as the conversion of petrol/diesel cabs to EVs by the end of the decade.

Strategic Budgetary Allocations for Accelerating Renewable Energy Growth

Vaibhav Roongta, Chief Business Officer, Rays Power Infra Pvt. Ltd., highlights the critical role of strategic budgetary allocations in paving the way for future provisions that can accelerate the growth of the renewable energy sector. In line with India’s goal of achieving 500 GW of non-fossil energy by 2030, Roongta emphasizes the opportunity to incentivize the shift to sustainable energy.

He suggests enhancing financial incentives such as tax credits, grants, and subsidies to make renewable energy solutions more economically viable. Addressing India’s dependence on solar panel imports, Roongta calls for measures to promote indigenous development, facilitate technology transfer, and incentivize localized manufacturing to conserve foreign exchange.

Furthermore, he stresses the importance of establishing a long-term and stable regulatory framework to streamline approval processes for large-scale projects, implement efficient net metering policies, and ensure seamless integration of renewable sources into the existing grid infrastructure.

The start-up community envisions the interim Union Budget 2024 as a catalyst for transformative reforms in the EV industry and renewable energy integration. Their collective voice emphasizes the need for strategic incentives, streamlined regulations, and visionary allocations to propel India towards a cleaner, brighter, and more sustainable future. As the budget unfolds, the nation will keenly watch how these aspirations are addressed and whether the government aligns its financial priorities with the goals of a greener and technology-driven tomorrow.

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