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NITI Aayog Proposes Battery Swapping Policy for EVs in India

Government suppose tank NITI Aayog on Thursday got here out with a draft battery swapping coverage for electrical autos and urged incentives in addition to a rigorous testing protocol for swappable batteries. The draft coverage additionally comes at a time when there are rising issues over issues of safety round electrical autos within the wake of a number of cases of such autos catching fireplace.

NITI Aayog in its draft coverage additional mentioned all main cities reminiscent of state capitals, UT headquarters and cities with inhabitants above 5 lakh can be lined beneath the second section, given the significance of the two-wheeler and three-wheeler car segments in rising cities.

The coverage seeks a degree taking part in subject throughout enterprise fashions involving the sale of EVs with fastened or swappable batteries.

The draft coverage additionally proposes that demand aspect incentives provided beneath current or new schemes for EV buy will be made out there to EVs with swappable batteries eligible beneath this coverage.

“The size of the incentive could be determined based on the kWh rating of the battery and compatible EV,” it urged.

As per the draft coverage, an applicable multiplier could also be utilized to the subsidy allotted to battery suppliers to account for the float battery necessities for battery swapping stations. It can also be proposed {that a} seamless mechanism for the disbursement of subsidies shall be labored out by the ministry or division involved, the draft coverage said.

To guarantee a excessive degree of safety on the electrical interface, NITI Aayog proposed {that a} sturdy/rigorous testing protocol shall be adopted to keep away from any dielectric breakdown, arc phenomenon, or any undesirable temperature rise on the electrical interface.

The draft coverage famous that Electric Vehicle Supply Equipment (EVSE) used on the swapping station should be examined and authorized by the National Accreditation Board for Testing and Calibration Laboratories (NABL) or an company appointed by the central nodal company for battery swapping.

“For safety during operation of the charging infrastructure, the operator must follow the guidelines and protocols of DISCOMS/CEA (Central Electricity Authority),” it mentioned.

Regarding points associated to grievance redressal and compensation, NITI Aayog proposed that in case complaints are registered by EV house owners, the battery supplier could also be requested by the suitable authority to return the demand incentive given to it beneath the relevant scheme.

The battery administration system (BMS) of the battery should be self-certified and open for testing to examine its compatibility with numerous programs, and functionality to fulfill security necessities, it mentioned.

The draft identified that as per the present Goods and Services Tax (GST) regime, the tax charges on lithium-ion batteries and EVSE are 18 p.c and 5 p.c, respectively.

“The GST Council, the decision making body on GST provisions, may consider reducing the differential across the two tax rates,” it urged.

According to the draft coverage doc, to supply improved data on battery well being and efficiency, and to allow extra flexibility to shoppers via peer-to-peer roaming networks, information sharing agreements amongst main battery suppliers can be inspired.

To implement distinctive traceability throughout the battery lifecycle, the draft coverage additionally proposes to assign a Unique Identification Number(UIN) on the manufacturing stage for monitoring and monitoring EV batteries.

It mentioned any particular person or entity is free to arrange a battery swapping station at any location, supplied that the desired technical, security and efficiency requirements are adhered to.

According to the coverage doc, a single-window portal needs to be set as much as facilitate the submission of all required paperwork by battery swapping suppliers, challenge commerce licences for battery swapping companies.

Considering the constraint of house in city areas for establishing charging stations at scale, Finance Minister in her Budget speech 2022-2023 had introduced that the Centre could be introducing a battery swapping coverage and interoperability requirements to be able to enhance effectivity within the EV ecosystem.

According to an official assertion, on this regard, NITI Aayog held an inter-ministerial dialogue to formulate a strong and complete battery swapping coverage framework in February 2022.

It additionally held an intensive pre-draft stakeholder dialogue with a large spectrum of stakeholders representing battery swapping operators, battery producers, car OEMs, monetary establishments, suppose tanks and different consultants.

Battery swapping is another which includes exchanging discharged batteries for charged ones.

Battery swapping de-links the car and gasoline (Battery on this case) and therefore reduces the upfront value of the autos.

The assertion famous that battery swapping is popularly used for smaller autos reminiscent of 2 and three wheelers which have smaller batteries which are simpler to swap in comparison with different automotive segments whereby the identical will be applied mechanically.

Further, battery swapping offers degree taking part in subject to revolutionary and sustainable enterprise fashions reminiscent of ‘Battery As a Service’, the assertion mentioned.

The draft is up for session, and NITI Aayog has invited feedback on it till June 5.

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