The Indian Government intends to invest approximately $4 billion in the creation of at least four Gigafactories, much like those owned by Tesla, for the production of batteries. This venture is a part of the government’s plan to ease the transition to electric vehicles, decrease pollution, and lessen the reliance on foreign oil imports.
Background Information
In the 2019 Union Budget, the government declared tax waivers for the establishment of mega-manufacturing plants for solar photovoltaic cells, lithium storage batteries, and solar electric charging infrastructure. NITI Aayog has estimated that India will require six gigawatt-scale facilities with 10 GWh capacity each by 2025 and 12 such facilities by 2030 in order to meet domestic demand.
Prospective Benefits to India
Investment in these Gigafactories will provide numerous benefits to India. Firstly, it will secure India’s energy requirements. This investment will also facilitate the development of an electronic vehicle ecosystem within the nation. Additionally, it will decrease India’s import expenditure on batteries as well as fuel. An equally important aspect is pollution control: promoting clean energy through this investment will help contain pollution levels. Moreover, the move will aid India in achieving its INDC targets.
Potential Challenges
Even while the project holds promise, India could face challenges in its execution. These may range from issues around the financial viability of the project, to technological barriers. Another possible problem is the lack of a stable policy for Electric Vehicles. Lastly, infrastructural issues such as land acquisition could present hurdles.
| Challenges | Potential Solutions |
|---|---|
| Financial viability of the project | Finding investors, optimizing costs |
| Technological barriers | Partnerships with tech companies, investing in R&D |
| Lack of a stable policy for Electric Vehicles | Government initiatives to create supportive legislation |
| Land acquisition issues | Government support, strategic site selection |
Promotion of Clean and Sustainable Mobility
To further support the shift to eco-friendly transport, the government recently launched the National Mission on Transformative Mobility and Battery Storage. This initiative aims to promote clean, connected, shared, sustainable and holistic mobility solutions throughout the country.
Article source: Livemint
