The government is looking at battery swapping as a more efficient alternative to setting up multiple charging stations across the country
Setting the foundation stone for another milestone in India’s journey to electric mobility, Finance Minister Nirmala Sitharaman announced during the Union Budget 2022-23 announcement that the government is going to propose a new policy for battery swapping to boost sales of EVs.
The government is looking at battery swapping as a more efficient alternative to setting up multiple charging stations across the country.
“Considering the constraint of space in urban areas for setting up charging stations at scale, a battery swapping policy will be brought out,” Sitharaman said in her budget speech for 2022/23.
Sitharaman said companies will also be encouraged to develop sustainable and innovative business models for battery or energy as a service which will improve efficiency in the EV ecosystem.
This is as part of the Modi-led government’s plans to reduce carbon emissions by up to 35 percent by 2030 as part of a commitment under the Paris Climate Agreement.
Shamsher Dewan, vice president at ratings agency ICRA, said, “This will “go a long way in reducing range anxiety” for EV buyers and create economies of scale in battery production.”
The government will give $6 billion in incentives to companies to build clean vehicles and produce batteries locally as it plans for electric cars to make up 30 percent of total private car sales by 2030 and for electric motorcycles and scooters to make up 40 percent of total sales.
