According to the document, which turned out to be at the disposal of Reuters, India plans to offer 4.6 billion dollars as an incentive for companies creating advanced battery production. So the government is trying to promote the spread of electric cars and reduce its dependence on oil.
The proposal, prepared by the federal think tank NITI Aayog, which is headed by Prime Minister Narendra Modi, says that by 2030, India can reduce its oil import costs by $ 40 billion if electric cars are widely distributed.
The proposal is likely to be considered by the Cabinet in the coming weeks – a senior government official told Reuters, who was not authorized to comment on the issue and therefore refused to call himself. The NITI Aayog center and the Indian government have not responded to the agency’s requests for comments.
The above amount is planned to be allocated gradually, in the form of monetary and infrastructure benefits. For example, in the next financial year it is planned to allocate 122 million dollars. The amount will increase every year.
The document also proposes to maintain the import tax rate of 5% for certain types of batteries, including batteries for electric cars, until 2022, but subsequently increase it to 15% to stimulate local production.
Despite India’s desire to reduce its dependence on oil and reduce pollution, efforts to promote electric cars are hampered by a lack of investment in production and infrastructure, such as charging stations. In the world’s second most populous country, only 3,400 electric cars were sold in the last fiscal year, compared to 1.7 million ordinary cars.