By-Mr.Prassann Daphal CEO Recyclekaro
“The upcoming Budget 2024 in India is expected to emphasize sustainability while addressing various sectoral demands and maintaining economic far-sightedness. Here are some key expectations for the recycling industry, particularly the battery recycling sector, which has significant expectations focused on promoting sustainability and enhancing economic viability.
Key Expectations:
– Reduction in GST: The Goods and Services Tax (GST) on waste lithium-ion batteries is expected to be lowered from 18% to 5%, in line with the GST rate on lead-acid batteries, which is a significant anticipation. With this adjustment, the inverted duty structure will be corrected and recycling processes will become more economically viable.– Extension of FAME II Scheme: Stakeholders in the industry are pushing for the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) program to be extended and possibly expanded. This extension is essential to sustaining the momentum behind EV adoption and encouraging battery recycling.
The government’s goal of having 30% electric vehicles on the road by 2030 will only be met with the expansion of the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) program, which the electric vehicle (EV) industry is pressing for.
– Production-Linked Incentive (PLI) Scheme: A specialised PLI plan for recycling lithium-ion batteries is being pushed. With the support of this program, the recycling industry would be encouraged to grow and make a substantial contribution to India’s sustainability objectives. The government may support the expansion of the industry by expanding the PLI plan to include the whole value chain, from manufacture to recycling.
– Incentives for Green Energy Projects: It is anticipated that the budget would include further incentives for renewable energy initiatives, such as battery recycling, which is essential to the clean energy transition and the circular economy. It is envisaged that there would be incentives for creative waste management systems and simplified recycling rules.
– Investment in R&D: Another crucial expectation is higher funding for research and development of battery recycling infrastructure and technologies. Improving domestic battery recycling capabilities and lab space can help the local industry expand while lowering reliance on imports.
If these steps are taken, they will help the recycling sector as well as more general environmental and economic goals including lowering India’s dependency on imports and moving the country closer to net-zero emissions by 2070.”
