IESA President Rahul Walawalkar expressed, in a statement, "The current GST rate on lithium ion batteries is 18 per cent and for other batteries, it is 28 per cent. We propose that all batteries should fall under the 18 per cent GST bracket. Additionally, we recommend reducing the GST for charging infrastructure services and battery swapping services to either 5 per cent or 18 per cent, down from the current 28 per cent."

He commended the government for initiatives like advanced chemistry cell battery (ACC-PLI), Auto-PLI, and Auto Components PLI, among others. He further suggested expanding PLI schemes to include battery components and the processing industry for battery raw materials, supporting initiatives for battery recycling, and fostering collaborations with international partners to secure critical raw materials.

IESA emphasized the importance of continuing incentives for deploying large-scale battery storage systems and supporting research and development to improve performance and reduce costs in this sector.

Addressing the challenges in the electric vehicle market, IESA highlighted the need for additional support to overcome barriers such as inadequate charging infrastructure and high initial costs.

The recommendations also stressed the importance of streamlining regulatory processes and providing clear guidelines for clean energy projects to facilitate faster implementation and reduce uncertainties for investors. Access to affordable financing remains a significant obstacle for clean energy projects, necessitating innovative financial mechanisms and incentives to encourage private sector participation.

The statement underscored the need for increased focus on research and innovation to drive down costs and enhance the efficiency of clean energy technologies. It noted that public-private partnerships could play a crucial role in advancing these objectives.