Govt signs agreement with 3 firms for ACC battery storage under PLI scheme

New Delhi [India], July 29 (ANI): Three selected bidders have signed the Programme Agreement under Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage, the Ministry of Heavy Industries said on Friday.
The companies are Reliance New Energy Limited, Ola Electric Mobility Private Limited and Rajesh Exports Limited. These companies will receive incentives under India's Rs 18,100 crore programme. In addition to the capacities allocated by the Ministry of Heavy Industries under the PLI Programme, private players are expected to create battery manufacturing capacity to the tune of 95 GWh, the ministry said.
A total of 10 bids were received from companies with a manufacturing capacity of 128 GWh under the PLI Scheme of ACC Battery Storage. Under the ACC PLI programme, the manufacturing facility would have to be set up within a period of two years. The incentive will be disbursed thereafter over a period of five years on the sale of batteries manufactured in India.
Commenting on the PLI Scheme for ACC Battery Storage, Union Minister for Heavy Industries Mahendra Nath Pandey said: "This embarks a new chapter in India's manufacturing industry as we set the vision for battery manufacturing and compete globally with other nations in this sunrise sector."
"This will be favorable to EV ecosystem and energy storage market as it will support the demand for EVs and renewable and attract investment in this sector. Today big companies are investing in battery manufacturing in India. We should support them and make India a truly global manufacturing hub," Pandey said.
The Government has approved the Production Linked Incentive (PLI) Scheme 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage' for achieving manufacturing capacity of Fifty (50) Giga Watt Hour (GWh) of ACC for Enhancing India's Manufacturing Capabilities with a budgetary outlay of Rs 18,100 crore. Under the said initiative the emphasis of the Government is to achieve greater domestic value addition, while at the same time ensure that the levelised cost of battery manufacturing in India is globally competitive.
The programme is designed in such a manner that it is technology agnostic in nature and hence only focuses on the desired output of the batteries. Thereby the beneficiary firm shall be free to choose suitable advanced technology and the corresponding plant & machinery, raw material, and other intermediate goods for setting up cell manufacturing facility to cater to any application.
The programme expects an investment that will boost domestic manufacturing & also facilitate battery storage demand creation for both electric vehicles and stationary storage along with the development of a complete domestic supply chain & Foreign direct investment in the country. ACC PLI scheme is expected to directly impact the saving to the nation on account of a reduction in import of crude oil to a significant extent and increase the share of renewable at the national grid level.
This PLI scheme for Advanced Chemistry Cell (ACC) (Rs 18,100 crore) along with the already launched PLI Scheme for automotive sector (Rs 25,938 crore) and Faster Adoption of Manufacturing of Electric Vehicles (FAME) (Rs 10,000 crore) seek to enable India to leapfrog from traditional fossil fuel-based automobile transportation system to environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles (EV) based system. (ANI)