In Budget 2022, Finance Minister, Nirmala Sitharaman, announced that the government will introduce a battery-swapping policy to help develop special mobility zones regarding electric vehicles (EVs).

This policy is expected to encourage the use of Evs a well as to brew more positive results around decarbonization goals.

A high-level committee for urban planning will be formed, and a battery swapping policy for clean public transportation will be implemented.

“Battery swapping policy to allow Electric Vehicles charging stations for automobiles will be framed”, says Sitharaman.

In response to the announcement, analysts at ICICI say that, “to further promote electrification, government to come out with Battery Swapping Policy which also includes the concept of energy/battery as a service. This will help in developing requisite charging station ecosystem and is positive for the domestic EV space. Government plans to promote private sector to incur required capex in this domain”.

Following the presentation of the Budget, shares of Indian battery manufacturers Amara Raja Batteries and Exide Industries climbed two percent.

“The Government has again reiterated intent and announced steps to reduce dependence on crude oil and coal imports. Firm steps in this regard include thrust on Solar power, waste to energy initiatives and emphasis on EVs”, says Anshuman Khanna, Director, ValPro.

“To promote a shift to the use of public transport in urban areas...special mobility zones with zero fossil fuel policy to be introduced...Considering space constraints in urban areas, a 'Battery Swapping Policy' will be brought in”, claims the Finance Minister.

Five current academic institutions will be named as centres of excellence in urban planning, with each receiving a grant of $ 250 million.

States will be assisted in increasing urban capability, according to Ms Sitharaman.

In addition, the Minister stated that 25,000 kilometres of national highway will be constructed this fiscal year (2022-23).

Meanwhile, Finance Minister Nirmala Sitharaman stated that her budget for 2022/2023 will create the groundwork for economic growth by investing in public infrastructure. The government forecasts growth of eight percent to 8.5 percent for the current fiscal year, compared to 9.2 percent for the previous fiscal year and a 6.6 percent decrease the year before.