NITI Aayog Releases Draft Battery Swapping Policy for Stakeholder Comments

What is the News?

Niti Aayog has released the  Draft Battery Swapping Policy.

What is battery swapping?

Battery swapping is a mechanism that involves exchanging discharged batteries for charged ones. 

Battery swapping offers three key advantages relative to charging: It is time, space, and cost-efficient provided each swappable battery is actively used.

What is the purpose of the Draft Battery Swapping Policy?

The policy is targeted at supporting the adoption of battery-swapping primarily for battery swapping systems used in electric scooters and three-wheeler electric rickshaws.

What are the proposals for the Draft Battery Swapping Policy?

Rationalize GST on Batteries: GST Council should consider reducing the differential across the tax rates on Lithium-ion batteries and electric vehicle supply equipment. Currently, the tax rate on the former is 18% and 5% on the latter.

Incentivization for Battery swapping enabled vehicles: The policy proposes to offer the same incentives available to electric vehicles that come pre-equipped with a fixed battery to electric vehicles with swappable batteries. 

Battery Swapping Networks: The policy has proposed that all metropolitan cities with a population of more than 40 lakh will be prioritized for the development of battery swapping networks under the first phase. Other major cities such as state capitals with a population greater than 5 lakh will be covered under the second phase.

Public battery charging stations: The policy requires state governments to ensure public battery charging stations are eligible for EV power connections with concessional tariffs. It also proposes to install battery swapping stations at several locations like retail fuel outlets, public parking areas, malls, kirana shops and general stores etc.

Unique identification number (UIN): The policy proposes to assign a unique identification number(UIN) to swappable batteries at the manufacturing stage to help track and monitor them. 

Setting up of Battery Swapping Stations: Any individual or entity is free to set up a battery swapping station at any location, provided that the specified technical, safety and performance standards are adhered to.

Source: This post is based on the article “NITI Aayog Releases Draft Battery Swapping Policy for Stakeholder Comments” published in PIB on 21st April 2022.