Post Budget Quote Dr. Rahul Walawalkar, Executive Director, India Energy Storage Alliance (IESA)
Honourable Finance minister has made a welcomed move by stressing on building a strong infrastructure both for Roadways, Railways and Smart Cities. Which we are sure will include Electric Transportation and optimal electrification of the railways. As part of the Smart Cities, Energy Storage and microgrids will play a vital role. Improving power quality and reliability is the backbone for effective implementation. This will be a big push for IESA member companies.
Govt. increased the allocation money under FAME scheme but its non-ambitious goals of 100% EV’s by 2030 is minimal. We are looking forward for the National Energy Storage mission which should lay out more specifics about EV’s. This is a good start, but we expect lot more clarity & initiatives from Govt for 100% electrification targets.
The continued support for Make In India in areas including defense will create additional opportunities for the sector. We can see lot of opportunities in storage integration like for diesel cost minimization, armed forces & similar opportunities can help the government to save more money by adopting these technologies.
On the other hand, increased custom duty on electronic items is a matter of concern. IESA’s priority right now is on increasing domestic demand where the upfront cost is definitely a concern as number of products the domestic manufacturing is not available. Detailed studies are in progress to see the implications pertaining to storage sector although the budget don’t mentioned of additional custom duties. Increase in custom duty will create hurdle in market adaption.