Good news for stocks like Dixon and Exide and other manufacturers using lithium-ion cell. India has expanded customs duty exemptions on a wide range of machinery used in the manufacturing of lithium-ion cells and inductor coil module. The move is aimed at supporting domestic production of electronic devices like smartphones, laptops, wearables and smart TVs.
Finance Ministry exempts customs duty on goods used in manufacturing lithium-ion cells, inductor coil modules and display assemblies.
Duty relief extended to over 80 types of lithium-ion cell manufacturing machines
In boost to ‘Make in India’, the exemption now covers more than 80 types of specialised equipment used across different stages of battery manufacturing. These include powder dryers, automatic feeding and blending systems, slurry transfer systems, cathode and anode coating machines, winding machines, vacuum pumps, electrode production machines, vacuum ovens, slitting machines, testing equipment and solvent recovery systems.
The revised list also includes equipment used for stacking, welding, electrolyte injection, cell formation, ageing, laser welding, helium testing, cleaning, packaging and final inspection of lithium-ion cells.
IT Secretary S Krishnan said, according to PTI, “Based on industry representations, this is something that we had taken up with the Ministry of Finance. This will really stimulate the electronics industry, especially the electronic component industry in the country.”
Key stocks in focus
Key electronic manufacturing companies like Dixon Technologies (India), Kaynes Technology India, Exide Industries, Amara Raja Energy & Mobility among others are in focus after the announcement. As these manufacturers may gain due to the move.