Battery component manufacturers could receive up to 50% subsidy

According to a report by The Economic Times, the Ministry of Heavy Industries of the Government of India is considering various subsidy models to promote the production of battery components in the country. The primary objective of this move is to increase the production capacity of battery components within the country.

The proposed assistance scheme includes two main types of incentives: capital subsidy and incentives linked to sales. An attempt will be made to boost local production through a combination of both.

The Ministry is currently evaluating a model where a subsidy of up to 25% of eligible capital expenditure (capex) can be provided. The purpose of this subsidy is to provide manufacturers with the necessary capital to establish their production capacity.

Additionally, component-specific operating incentives are also being considered to accelerate the production process. Under these incentives, companies could receive assistance ranging from 5% to 18% of their eligible sales.

India's long-term goal is to achieve an annual 50 GWh battery cell production capacity by 2032. To achieve this goal, it is extremely essential to have sufficient production capacity in the country.

At present, a significant difference is observed in the cost of battery raw materials. Compared to China, the cost of battery raw materials in India is considerably higher. To address this economic challenge, the Ministry is considering such subsidy models.

The Government of India's goal is to establish an annual battery cell production capacity of 50 GWh in the country by 2032, for which having sufficient production capacity in the country is indispensable.

The mandate of the Ministry of Heavy Industries, Government of India, is to formulate various policies for the development of the country's industrial sector and to enhance production capacity.