IESA, experts hail Budget, say it will push energy in India

New Delhi, Feb 3 (PTI) Industry India Energy Storage Alliance (IESA), along with leading industry experts, hailed the Union Budget saying proposals like Rs 40,000 crore outlay for electronics component duty exemptions will push energy storage in the country.

However, the IESA raised concerns over critical gaps, including the absence of allocations for lithium and nickel refining under the recently announced scheme, missing incentives for the recycling industry, an IESA statement said.

This assumes significance in view of India's ambitious target of having 500 GW of renewable energy by 2030. This huge renewable energy capacity addition requires battery storage.

According to the statement, IESA welcomed the Budget's push for energy storage and battery manufacturing, including the Rs 40,000 crore Electronics Components Manufacturing Scheme (ECMS) enhancement, explicit Basic Customs Duty (BCD) exemptions for BESS (battery energy storage system), dedicated rare earth corridors across Odisha, Kerala, Andhra Pradesh, and Tamil Nadu, ISM 2.0 for semiconductor manufacturing, three chemical parks for battery chemicals, and deployment of 4,000 electric buses in the Northeast.

IESA President Debmalya Sen said in the statement, "We welcome the government's comprehensive approach to boost energy storage and battery manufacturing." To ensure effective implementation, the IESA recommends issuing detailed operational guidelines for the chemical parks within 90 days, specifying land allocation, infrastructure timelines, and incentive structures for battery chemical manufacturers, he added.

"We urge the government to create a dedicated BESS category within the Infrastructure Risk Guarantee Fund, with sector-specific risk-assessment parameters," he said.

Customized Energy Solutions Managing Director Vinayak Walimbe said, "While the BCD exemption on capital goods for ACC manufacturing equipment is a positive step, it falls short of addressing the complete value chain. This exemption must be extended to ACC component manufacturing equipment to fully strengthen domestic capabilities." Dr Avishek Kumar, Founder, Sunkonnect and Global Climate Tech Entrepreneur, emphasised that a record Rs 12.21 lakh crore capital expenditure outlay and 29 per cent increase for PM Surya Ghar create good visibility for solar investments and domestic manufacturing scale-up.

The customs duty rationalisation to 20 per cent on solar cells and modules, along with BCD exemption on sodium antimonate for solar glass, will support local production capabilities, he pointed out.

However, he said while the reduction in BCD will help manage local production, it may not significantly reduce costs; further measures will be needed to improve affordability.

Gaurav Aggarwal, Co-Founder, GoodEnough Energy, said the Budget delivers a strong policy push for India's battery energy storage and domestic manufacturing ambitions.

NavPrakriti Co-Founder Akhilesh Bagaria said, "We welcome the full customs duty exemption on waste and scrap of lithium-ion batteries, which addresses critical challenges around feedstock availability." PTI KKS TRB