NEW DELHI, Jan. 3 -- The Centre is considering extending the 5% concessional basic customs duty (BCD) on lithium-ion cells used in battery packs for electric vehicles (EVs) for another two years in the upcoming Union budget, according to two people familiar with the matter, as domestic manufacturing has failed to gain momentum.

"The proposal from the country's automobile industry came up during consultations with the ministry of finance," said one of the two people cited above.

"The recommendation is being considered by the Union ministry of finance," said the second person. Both persons quoted earlier did not want to be identified.

The battery accounts for up to half of an EV's price, and India's lithium-ion cell imports have surged t...