Budget may unveil ₹3,500 cr policy for battery recycling

The policy will have a focus on cluster-based recycling units and will incorporate incentives

- Rituraj Baruah

The government is expected to announce a policy for recycling lithium-ion batteries in the union budget in anticipation of greater adoption of electric vehicles as part of a move to meet its international commitment on cutting carbon emissions.

The policy will have a focus on cluster-based recycling units, located to close by battery manufacturing factories and set up with government incentives, said two officials aware of the development.

This could see the Centre propose an allocation of around ₹3,500 crore for the scheme for a period of around three years, the people cited above said.

"Battery recycling industries are very capital-intensive and we cannot expect large-scale recycling without incentives. Companies would require initial fiscal support from the Centre. The emphasis would be to set up these industries in established industrial areas keeping in view the logistical support," said one of the two officials. The move follows visits to major battery recyclers around the world by Indian delegations, who have also sought investments by these businesses in Indian recycling units, said the official, adding that the government will now identify the clusters where recycling units can be set up.