Hyundai Global Motors, Larsen & Toubro and battery makers Amara Raja and Exide have also offered bids under the scheme, the Heavy Industries Ministry said. The scheme is also expected to increase foreign direct investment in battery manufacturing. The government aims to create a battery storage capacity of 50 GWh Hours (Gwh) in five years. An investment of about $ 6 billion (about Rs 44,610 crore) is expected in this. To get the incentive, companies will have to build a minimum storage capacity of 5 Gwh as well as meet the requirements of the local component.
The ministry said that 10 companies have given bids for about 130 Gwh. Companies like Tesla, Samsung, LG Energy, Northvolt and Panasonic are being encouraged by the central government for investment. Clean automobile technology is a key part of the government’s strategy to reduce pollution and import crude oil in major cities. The share of Electric Vehicles (EVs) in the automobile sales in the country is very low and this is largely due to the costly of the batteries used in these vehicles. These batteries are imported.
The government has set a target of taking the share of electric cars to 30 percent of private car sales by 2030. For electric bikes and scooters, it is 40 percent. This will increase the demand for batteries. The battery can account for 35 to 40 percent of the total cost of an electric vehicle. Some global automobile companies have shown interest to start selling electric vehicles in India. However, high import duty is a big hurdle for these companies. Tesla has requested the central government to consider reducing the import duty. Automobile companies of the country are opposing the reduction of import duty. They say that this will affect local manufacturing.
(This news has not been edited by NDTV team. It has been published directly from Syndicate feed.)<!–
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