The Andhra Pradesh Economic Development Board (APEDB) and Urja Global have signed a memorandum of understanding (MoU) for setting up manufacturing units of lithium-ion batteries and electric vehicles for the development of electric mobility ecosystem.

Under the MoU, Urja Global has agreed to invest ₹2 billion (~$28.55 million) which will create 250 direct and 1,000 indirect job opportunities. The manufacturing units will be set up at Anantapur, Nellore, and Chittoor in Andhra Pradesh.

“Andhra Pradesh as an emerging auto hub also enjoys the optimal inflection point to transition to electric mobility. One of the critical components of the e-mobility value chain is batteries and it is strategically important for Andhra Pradesh to compete in the global market”, said J. Krishna Kishore, CEO of APEDB.

Urja Global is engaged in designing, consultancy, integration, supply, installation, commissioning and maintenance of off-grid and grid-connected solar power projects. Its current products also include lithium-ion batteries, e-rickshaws batteries, and automotive energy storage systems.

In January 2019, the Indian government lowered the customs duty on import of EV components to 10-15 percent. Before, EV components imported for assembly in India attracted the import duty of 15-30 percent. However, with this move, the assembled parts and components will now attract a duty of 15 percent and above up to 60 percent. Moreover, the Central Board of Indirect Taxes and Customs (CBIC) has created a separate category for EV components.

Many states have geared up for the uptake of EVs as a means of mainstream mobility and others have initiated plans to develop EV manufacturing hubs.

Recently, Mercom reported that Rajasthan Electronics and Instruments Limited (REIL) issued a tender to set up 270 electric vehicles’ charging equipment across various locations in the country.

Previously, Mercom reported that EV sales so far has been inconsistent under the Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME) program. While some states have made good progress, many states are well-behind in EV adoption.