Budget 2024: Plans for EVs and auto sector boost in Finance Minister Nirmala Sitharamans Interim Budget speech
Finance Minister Nirmala Sitharaman outlined plans to enhance the electric vehicle (EV) ecosystem by supporting charging infrastructure on February 1, 2024.
Budget 2024: Finance Minister Nirmala Sitharaman presented the Union Budget for the fiscal year 2024-2025 on February 1, 2024, and outlined plans to enhance the electric vehicle (EV) ecosystem by supporting charging infrastructure. The government aims to encourage the adoption of electric buses for public transport networks, she said.
Mandatory Biogas Blending and Environment-Friendly Schemes
FM declared mandatory blending of compressed biogas into compressed natural gas for transport, alongside piped natural gas. The government will launch a Biomanufacturing and Bio Foundry Scheme to provide eco-friendly alternatives for bio-degradable production.
Auto Sector Gets a Significant Boost
The interim budget reveals a substantial increase in the allocation for the automotive industry's (PLI) Production-Linked Incentive scheme for 2024-25, reaching Rs 3,500 crore. The PLI scheme for advanced chemistry cell and battery storage sees a notable hike from Rs 12 crore to Rs 250 crore.
Extended PLI Scheme
The Ministry of Heavy Industries extended the tenure of the PLI scheme for automobiles and auto components by one year, providing incentives for five consecutive financial years starting 2023-24.
Financial Allocations for Urban Public Transport and Metro Projects
With a focus on urban public transport, the government proposed Rs 1,300 crore for electric buses and Rs 24,931 crore for various metro projects. The funds mark a 7.57 per cent increase from the previous year's allocation for mass rapid transit system and metro projects.
PM-eBus Sewa Scheme
Under the PM-eBus Sewa scheme, the government aims to procure 10,000 electric buses for 169 cities through public-private partnerships. The scheme, with a total outlay of Rs 57,613 crore, will continue until 2037.
Focus on Urban Transformation
Sitharaman highlighted the role of metro rail and NaMo Bharat trains in facilitating urban transformation. The government plans to support the expansion of these systems in large cities, focusing on transit-oriented development.
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