ZERO GST ON LOCALLY MANUFACTURED LITHIUM ION BATTERIES TO ISRO DESIGN

At  Long Last  ?

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Thanks ISRO

For acceding my repeated requests to licence your technology for Lithium-ion Battery to interested firms

This is what Times of India reported recently :

137 companies eye Isro's e-vehicle battery technology   [  July  18  2018  ]

I find that , for transferring this technology to potential firms , ISRO has stipulated :

#  Companies to submit their application with Rs 4 lakh as Security Deposit

#  There will be a 3 stage “ Evaluation Process “

#  A high level Committee will scrutinize genuine contenders

#  Deposit will be refunded to companies not selected / backing out

#  Shortlisted companies to pay Rs 1 crore as one-time fee for technology transfer

Batteries will be 50 Ah and 100 Ah capacity

Whereas no one can fault this elaborate / transparent evaluation process , it is of utmost importance to keep in mind the following :

#    TESLA Model 3 ( selling for $ 35,000 ) is rumoured to have a 50 Kwh battery

#    At $ 190 / Kwh , it might cost , $ 9,500 ( $ 195*50kwh ) ( Rs 6.65 Lakh )

#   This battery is produced in TESLA’s GigaFactory ( 35 Gwh ) costing $ 5 billion

#   In India , Adani / Reliance / JSW / M&M / Suzuki etc are planning to put up Li-ion Battery plant ( Reliance plant with 25Gwh  capacity estimated to cost $ 3.5 Billion )

Questions :

#  What is ISRO’s estimate of the manufacturing cost of its 50 – 100 Ah batteries ?

#  When installed in an E Car , what would such a locally designed / manufactured battery cost as a percentage of selling price of those e cars ?

     In currently available e-cars ( M&M / TATA ), this cost ( but of fully imported batteries ) , is approx. 50 %  of its selling price

     Can this ( locally manufactured battery ) cost , be brought down to ( say ) , Rs 2 lakhs , ( from current import cost of Rs 5 lakhs ), thereby bringing down the ( On Road ) Selling Price of e20 ( M&M ) / TIGOR ( TATA ) e-cars , to below Rs 7 lakhs ( from current Rs 10 lakhs ) ?  It is most important to ensure ZERO % GST on locally manufactured batteries

#   If E Car selling prices drop from Rs 10 lakhs to Rs 7 lakhs , then there will be no need for extending any SUBSIDY , either to the car manufacturers or to the car buyers

     No one will want to buy a Petrol / Diesel car ( costing Rs 10 lakhs ) anymore !

#   If ISRO designed battery is capable of charging from a 220 V domestic outlet at night ( as in case of NISSAN Lyf ) – and give a range of 130 km / charge – then , will that not eliminate the need for road-side Battery Charging Stations ? 

     No “ range anxiety “ coupled with “ cheaper to buy / operate than a petrol car “ will ensure rapid adoption of e cars  !

#  In May 2017 , ISRO also demonstrated a converted ONMI van with Solar Panelled Roof, capable of charging a small Lithium-ion Battery ,as long as the car roof is exposed to sun light

     What is holding back “ bundling “ this technology – transfer,  along with the technology for the Lithium-ion Battery ?

     If “ bundled “ , that would enable India to :

     *  leapfrog rest of the World and fully switch over to E Cars by 2025

     *  dramatically cut down on air pollution

     *  save millions of lives

     *  generate millions of new jobs 

For comprehensive suggestions on “ Desired Policy in respect of Electric Cars “ , refer to :

Auto Industry : Policy Inputs  [  27  Dec  2017  ]

23  July  2018

www.hemenparekh.in / blogs