Budget 2022: Battery swapping policy for EV charging stations to be framed
To promote a shift to the use of public transport in urban areas, special mobility zones with zero fossil fuel policy to be introduced, announced FM Sitharaman
PremiumWith respect to announcements related to electric vehicles, Finance Minister Nirmala Sitharaman in her Budget 2022 speech that the govt will come out with a battery-swapping policy which will develop special mobility zones for EVs.
“To promote a shift to the use of public transport in urban areas...special mobility zones with zero fossil fuel policy to be introduced...Considering space constraints in urban areas, a 'Battery Swapping Policy' will be brought in," said the Finance Minister while presenting this year's Budget.
The government will introduce the new policy for battery swapping to encourage the use of electric vehicles and achieve its broader decarbonisation goals.
“To further promote electrification, government to come out with Battery Swapping Policy which also includes the concept of energy/battery as a service. This will help in developing requisite charging station ecosystem and is positive for the domestic EV space. Government plans to promote private sector to incur required capex in this domain," said analysts at ICICI Securities.
Shares of Indian battery makers Amara Raja Batteries and Exide Industries rose 2% after this Budget announcement.
“The Government has again reiterated intent and announced steps to reduce dependence on crude oil and coal imports. Firm steps in this regard include thrust on Solar power, waste to energy initiatives and emphasis on EVs," said Anshuman Khanna, Director, ValPro.
Meanwhile, Finance Minister Nirmala Sitharaman said on Tuesday that her budget for 2022/2023 will lay the foundation for economic growth through public investment. The government has projected growth at 8% to 8.5% compared with an estimated 9.2% for the current fiscal year and a 6.6% contraction the previous year.
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