NITI Aayog unveils draft battery-swapping policy

New Delhi, April 21

The government’s top think tank NITI Aayog today unveiled the draft battery-swapping policy to give a fillip to the electric vehicle sector, as it proposes incentives and rigorous testing protocol for the energy-storage device.

The policy has been unveiled at a time while a debate is going on in the country over safety concerns around electric vehicles, which on several times witnessed instances of fire.

Moots sops, rigorous testing protocol

• Incentives offered under existing or new schemes for EVs can be made available to vehicles with swappable batteries
• A robust/rigorous testing protocol to avoid any dielectric breakdown, arc phenomenon or any unwanted temperature rise
• All major cities such as state capitals, UT headquarters and cities with population above 5 lakh will be covered under the second phase

In its report, the Aayog said all major cities such as state capitals, UT headquarters and cities with population above 5 lakh would be covered under the second phase, given the growing number of two-wheeler and three-wheeler vehicles in the segment.

The policy seeks a level-playing field across business models involving the sale of EVs with fixed or swappable batteries.

The draft policy also proposes that demand-side incentives offered under existing or new schemes for EV purchase can be made available to EVs with swappable batteries eligible under the policy. “The size of the incentive could be determined based on the kWh rating of the battery and compatible EV,” it noted.

The draft policy has also proposed that a seamless mechanism for the disbursement of subsidies shall be worked out by the ministry or the department concerned.

To ensure high-level protection at the electrical interface, it has proposed that a robust/rigorous testing protocol shall be adopted to avoid any dielectric breakdown, arc phenomenon or any unwanted temperature rise at the electrical interface.

The draft pointed out that as per the current goods and services tax (GST) regime, the tax on lithium-ion batteries and electric vehicle supply equipment (EVSE) are 18% and 5%, respectively. It said, “The GST Council may consider reducing the differential across the two tax rates.”