Union Budget 2019 reaction: Incentivising EV manufacturing is a move in the right direction - Sohinder Gill, SMEV
Finance Minister, Nirmala Sitharaman presented the Union Budget 2019 today. The Budget 2019 covered the topics of efficient public transportation, alternate methods of commute for commercial vehicles, national transport card for universal payment of tolls, tickets for road, rail and retail shopping. It also covered the national highway development plan that will further improve connectivity in the country. Here's a detailed reaction of Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles (SMEV).
Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles (SMEV)
"The announcements on Electric Vehicles (EVs) in the Union Budget 2019-2020 bring cheers to both consumers as well as e-vehicle manufacturers. To make India as an EV manufacturing hub, decision on incentivising EV manufacturing by extending benefits under Section 35AD (1) is a move in the right direction. It will help in the creation of a local manufacturing base and encourage component manufacturers to invest in the sector.
Provision of additional income tax deduction of an amount up to 1.5 lakh rupees on purchase of EVs would encourage customers to opt for EVs. Additionally, bringing down custom duty on lithium-ion cells to nil would further cut down the cost of batteries and help local battery manufacturers to scale up the business. The EV industry has witnessed 100 per cent growth in the FY 18-19, and with these key measures announced today, we anticipate a brighter future ahead for the industry."