Union budget 2021 live updates

The wait is over! the new budget of the FY 21-22 has been finally announced today by India’s Honorable Finance Minister Nirmala Sitharaman in the Parliament. As the Finance Minister as already described and assured us that her upcoming budget for FY 21-22 will be unlike anything seen in the last 110 years. Let us now look into detail what the Finance Minister is promising for the electric vehicles Industry.

Union budget 2021

The people of India have a lot of expectations on this year’s budget as people hope the new budget will recover people and businesses from their loses caused due to the global COVID19 pandemic. Not only India but the entire world is suffering from the economic crisis and

The first interesting thing here this time is the Finance Minister is using a tab to read out the Union Budget instead of a traditional ‘bahi khata’. As social media already flooding on Twitter about it. Some are supporting the move and some shown negative opinions about the FM.  But we find it an innovative and revolutionary change ‘Digital Budget’ as technology is modernising day by day so the usage too must also be modernised. 

SMEV expectations 

The Society of Manufacturers of electric vehicles (SMEV) has asked Finance Minister Nirmala Sitharaman to either rejig the FAME II scheme or reintroduce FAME I. Seeks reduction of GST on EVs sold without battery.

SMEV Director General Sohinder Gill wrote in a letter to Sitharaman, “For a nascent and disruptive industry like EV that is heavily dependent on government policies, there needs to be an effective approach that would drive the market of EVs in the country. The industry is still lagging behind the desired target.”

Finance Minister Nirmala Sitharaman read out the budget FY 21-22

• Innovation & Research &Development is one of the 6 pillars of the budget FY 21-22. 
• 50,000 Cr for R&D
• 18,000 Cr for public transportation
• Incentives for the startups,
• funding for startups
• Indirect tax-GST
• Smoothen the GST normally, custom duty,
• The manufacturing plant, solar inverters, solar lanterns.
• capital equipment
• MSMEs products, supporting
• Tax holiday for start-ups extended by 1 year
• Exemption on capital gains on investment in startups extended by 1 yr
• Tax holiday for start-ups increased by one more year-till March 31, 2022
• Customs duty on solar lanterns cut to 5%
• Customs duty on copper scrap cut to 2.5 per cent.
• Customs duty on some auto parts to be raised to 15 per cent.
• For the power sector, a scheme for more than 3 lakh crore rupees is being launched by the government to strengthen the electricity-related infrastructure in India.
• It also announced to build a hydrogen plant.

Vehicle scrapping policy

The government will introduce a vehicle scrapping policy to incentivise people to replace their older vehicles with newer ones. There will be a fitness test conducted after 20 years for personal vehicles and after 15 years for commercial vehicles.

The new vehicle scrapping policy will be implemented in the country on 1st April 2022 and an official notification will be announced by the Ministry. This policy will help to reduce some amount of pollution levels from the country until India completely transforms into electrified vehicles. 

Related: Budget 2021 expectations-what SMEV says

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