To speed up the large-scale adoption of EVs, state think tank NITI Aayog on Thursday released a draft battery swap policy targeting electric two-wheelers and three-wheelers, proposing incentives for EVs with swappable batteries, as well as subsidies for companies that manufacture swappable batteries, technical and testing requirements and reduction in GST, among other things.
When changing batteries, discharged batteries are exchanged for charged ones, the vehicle and the fuel are separated, thus reducing the acquisition costs of the vehicles.
The draft directive, which comes amid growing concerns about EV safety following a series of electric two-wheeler fire incidents, recommends prioritizing all metropolitan areas with populations of more than four million for the development of battery swap networks in the first phase (1-2 ) years, followed by all major cities such as state capitals, UT headquarters and cities with more than 5,000 inhabitants over the next 2-3 years.
The document released by the think tank invites stakeholders to comment on the policy by June 5, stating that from the date of its public disclosure, this policy will be in effect until March 31, 2025, after which it will be reviewed and renewed as decided by can become the Ministry of Power.
The draft directive proposes that demand-side incentives offered under existing or new electric vehicle purchase schemes can be made available for removable battery electric vehicles covered by the directive. “The level of the incentive could be determined based on the kWh rating of the battery and the compatible electric vehicle,” it said.
To ensure battery safety and asset security, removable batteries will be equipped with advanced features such as IoT-based battery monitoring systems, remote monitoring and immobilisation capabilities, and other necessary control features. In addition, it has proposed that batteries be tested and certified in accordance with the AIS 156 (2020) and AIS 038 Rev 2 (2020) traction battery safety standards, as well as additional tests that may be required for removable batteries.
“To ensure a high level of protection at the electrical interface, a robust/rigorous test protocol must be put in place to avoid dielectric breakdown, arcing phenomenon or unwanted temperature rise at the electrical interface,” it said, adding that BMS (Battery management system) of the battery must be self-certified and open to testing to verify its compatibility with different systems and its ability to meet safety requirements.
For EVs with swappable battery capability, vehicle OEMs must obtain ARAI approval for their vehicles to accept interoperable swappable batteries, she added.
Noting that the tax rates for lithium-ion batteries and electric vehicle supply equipment (EVSE) are 18% and 5% respectively under the current Goods and Services Tax Scheme (GST), the draft directive proposed that the GST Council Consider reducing the difference between the two tax rates.
The finance minister announced in her 2022-23 budget speech that the center would introduce a battery swap policy and interoperability standards to improve efficiency in the EV ecosystem.
According to an official statement, NITI Aayog held an inter-ministerial discussion in February to formulate a robust and comprehensive policy framework for battery swapping, along with a detailed preliminary draft stakeholder discussion with representatives from battery swap operators, battery manufacturers, vehicle OEMs, financial institutions, think tanks and other experts .
The Bureau of Energy Efficiency (BEE), the central node agency responsible for rolling out public electric vehicle charging infrastructure, will be responsible for implementing battery swap networks across the country, it said, adding that vehicles with swappable batteries will be sold without a battery, which offers potential electric vehicle owners the advantage of lower initial costs.
