The Union Budget on Wednesday focused on energy transition with an outlay of `35,000 crore to encourage green mobility with initiatives like vehicle scrappage police, hydrogen fuel and electric vehicles. Presenting the Union Budget 2023, Finance Minister Nirmala Sitharaman announced that the subsidies on electric vehicle batteries will be extended for one more year, hence manufacturing of EVs cheaper in India.
“I propose to continue the concessional duty on lithium-ion cells for batteries for another year,” Sitharaman said.
The FM said she has allocated adequate funds to scrap old vehicles owned by the Central Government, and States will also be supported in replacing old vehicles and ambulances. Presenting the Budget for 2023-24, she said replacing old polluting vehicles is an important part of greening the economy.
Recently, Union Minister Nitin Gadkari had said more than nine lakh vehicles, owned by Central and State Governments, transport corporations and public sector undertakings, that are older than 15 years will go off the road from April 1 and new vehicles will replace them.
She also spoke about the recently launched National Green Hydrogen Mission with an outlay of `19,700 crore, which will facilitate transition of economy to low carbon intensity, reduce dependence on fossil fuel imports and make the country adopt technology and market leadership in this sector.
“I come to green growth. The Prime Minister has given vision for LiFE, or lifestyle for environment. To spur a movement for environmentally conscious lifestyle, India is moving firmly for the panchamrit, the net zero carbon emission by 2070, usher in green industrial and economic transition. This Budget builds on our focus on green growth,” the Finance Minister said in her Budget speech.
“I would like to thank the Finance Minister for proposing `20,700 crore investment in the renewable energy sector, `19,700 crore for National Green Hydrogen Mission and enforcing provisions for vehicle scrappage policy for a sustainable and energy-efficient future,” commented Gadkari post Budget.
Prices of imported vehicles with invoice value less than USD 40,000 are expected to go up by around 2 per cent with the government proposing to increase customs duty on such vehicles from 60 per cent to 70 per cent in the Union Budget 2023-24.
Customs duty on vehicles in completely built units (CBUs) costing less than USD 40,000 or with engine capacity less than 3,000 cc for petrol-run vehicles and less than 2,500 cc for diesel-run vehicles has been raised from 60 per cent to 70 per cent, as per the Budget document.
The automobile industry termed the Budget as growth-oriented, saying the proposed measures will drive sustainable yet inclusive growth at a rapid pace.