In a significant development towards enhancing India’s Manufacturing Capabilities, 10 bids with capacity ~ 130 Gwh have been received under the PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage, informs Ministry of Heavy Industries (MHI).
A request for Proposal (RFP) was released by MHI on 22nd October 2021, wherein a total of 10 companies submitted their bids under the ACC Battery Storage Programme. The scheme was open for receiving applications till 11 AM, 14 January 2022 and the Technical Bids were opened on 15 January 2022.
As per the Ministry, the manufacturing facility would have to be set up within a period of two years, after which the incentive will be disbursed over a period of five years on the sale of batteries manufactured in India.
What is Govt’s National Programme on Advanced Chemistry Cell (ACC) Battery Storage’?
The government approved the ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ under the Production Linked Incentive (PLI) Scheme with a budgetary outlay of Rs 18,100 crore.
The objective is to achieve a manufacturing capacity of Fifty (50) Giga Watt Hour (GWh) of ACC for enhancing India’s manufacturing capabilities. It is the government’s goal to increase domestic value addition with this project while also ensuring that the levelized cost of battery manufacture in India remains competitive globally.
The programme is built in such a way that it is technology agnostic. In fact, the beneficiary company will have complete freedom to select appropriate sophisticated technology, equipment and machinery, raw materials, and other intermediate items for setting up a cell production facility to serve any purpose.
The programme envisions an investment that would enhance local production and assist the establishment of battery storage demand for both electric vehicles and stationary storage. The scheme also encompasses the development of a complete domestic supply chain and FDI in the country.
It is expected that the ACC PLI scheme will save up the country’s reserves by reducing crude-oil imports to a large extent while monumentally increasing the share of renewable energy in the national grid.
Following are the companies who have applied for the ACC PLI scheme:
1. Reliance New Energy Solar Limited
2. Hyundai Global Motors Company Limited
3. Ola Electric Mobility Private Limited
4. Lucas-TVS Limited
5. Mahindra & Mahindra Limited
6. Amara Raja Batteries Limited
7. Exide Industries Limited
8. Rajesh Exports Limited
9. Larsen & Toubro Limited
10. India Power Corporation Limited
Total: 130 Gwh
One-up for the Sustainable Approach with Atma Nirbhar Bharat
This PLI scheme for Advanced Chemistry Cell (ACC) (18,100 crores), along with the already announced PLI Schemes for Automotive Sector (25,938 crores) and Faster Adaption of Manufacturing of Electric Vehicles (FAME) (10,000 crores), will enable India to transition from a traditional fossil fuel-based automobile transportation system to a more environmentally friendly, sustainable, advanced, and efficient Electric Vehicles (EV)-based system.
The industry has placed its trust in India’s phenomenal rise as a world-class manufacturing destination, which is in line with the Prime Minister’s clarion to build an Atma Nirbhar Bharat or Self-sufficient India.