Luxury electric cars costing above ₹20 lakh can attract 18% GST

In the draft report submitted to the 56th GST Council, the Group of Ministers on rate rationalisation has suggested to hike the GST rate on EVs from 5% to 18%, according to a report by Business Today. This will be applicable only for four-wheeled EVs priced between ₹20 lakh and ₹40 lakh. Other vehicles, like e-buses will continue to enjoy the concessional rate of 5%. The GoM’s rationale is that the concessional 5% rate disproportionately benefits high-end buyers.

PLI scheme helps auto sector attract ₹67,690 worth investments

Owing to the Production Linked Incentive (PLI) scheme, India’s auto and auto parts industries have combined attracted investments worth ₹67,690, reported ET Auto. By March 2024, this generated nearly 29,000 jobs. Combined with the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME) scheme, this supports the transition to electric mobility. 

Suzuki to invest ₹70,000 crore in India over the next 5-6 years and export its EV to 100 countries

Japanese auto giant Suzuki Motor Corporation has plans to invest ₹70,000 crore in India over the next 5-6 years, according to its President Toshihiro Suzuki. This came soon after PM Narendra Modi announced the export programme of the e-Vitara, Maruti Suzuki’s first electric vehicle, to 100 countries, reported the Times of India. The company’s Gujarat facility can eventually have the capacity to manufacture 10 lakh units, while the electric vehicle will be exported to countries from the port of Pipavav. The production of lithium-ion batteries for the company’s electric and hybrid vehicles will also be done at the facility.

OpenAI to open first India office in Delhi later this year

American artificial intelligence company OpenAI is set to open its first India office in New Delhi later this year, reported Reuters. India is the second largest market for the Microsoft-backed company, which created ChatGPT. It launched its cheapest monthly plan at $4.60 in India as well, targeting the nearly one billion internet users. OpenAI has already begun hiring local talent. 

While data centers needed to train and run AI are being ramped up globally, there are concerns over its massive electricity requirements. However, the newer models consume less electricity than earlier models. According to OpenAI’s CEO Sam Altman, a standard text query uses 0.34 Wh of electricity. On the other hand, Google’s Gemini LLM uses around 0.24 Wh — equivalent to using a microwave for one second, according to a piece by data scientist Hannah Ritchie.

Climate tech startup Sow&Reap Agro granted 37,000 carbon credits for cutting methane in paddy production

Using a novel method to cut down methane emissions while cultivating paddy has earned climate-tech startup Sow&Reap Agro more than 37,000 carbon credits by global certification body Gold Standard. The startup used its Alternate Wetting and Drying (AWD) for paddy in Telangana, reported The Hindu. The AWD method is part of the company’s sustainable paddy cultivation project called VARRI, which has been implemented across eight districts. The startup has six potential such projects running at the moment, spread across agriculture, forestry and waste to energy sectors. Its aim is to reduce 5 lakh tonnes of greenhouse gas emissions.

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