Duty exemption on atomic energy, BESS to boost energy transition

The Government on Sunday proposed customs duty exemptions to encourage investments in nuclear power, battery energy storage and sodium antimonate to boost non-fossil fuel-based energy generation.

This assumes significance in view of India’s ambitious target of having 500 GW of renewable energy.

India is required to add at least 50 GW of renewable energy per annum capacity by 2030 to achieve this target. Finance Minister Nirmala Sitharaman, in her Budget speech in the Lok Sabha, said, “I propose to extend the basic customs duty exemption given to capital goods used for manufacturing Lithium-Ion Cells for batteries, to those used for manufacturing Lithium-Ion Cells for battery energy storage systems too.”

According to the indirect tax proposals, zero import duty is proposed on specified capital goods for use in the manufacture of lithium-ion cells for batteries of Battery Energy Storage System.

She also proposed to exempt basic customs duty on the import of sodium antimonate for use in the manufacture of solar glass.

Presently, 7.5 per cent basic customs duty is levied on sodium antimonate. Boosting nuclear power is also needed in the country to replace coal-based electricity generation, which serves as a base load.