Four companies selected for Rs 18,000 crore PLI scheme for ACC battery storage

A total of four companies out of the ten, have been selected for the incentive under Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) battery storage, said the Ministry of Heavy Industries on Thursday.

The selected companies include Reliance New Energy Solar, Ola Electric Mobility, Hyundai Global Motors Co and Rajesh Exports. These companies will receive incentives under India’s Rs 18,100 crore programme to boost local battery cell production.

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The remaining companies that are not successful in securing allocation are placed under a waiting list, which includes Mahindra & Mahindra, Larsen & Toubro, Amara Raja Batteries, India Power Corp and Exide Industries.

The selected companies will have to set up their manufacturing facilities within two years. The incentive will be paid over five years for the sale of batteries manufactured in India.

“India has the strongest Government support for electrification in the whole world! Excited to be selected for the PLI scheme for manufacturing world-class cells in India. Today, 90 per cent of global capacity is in China. We will reverse that and make India a global hub for EVs and cell tech,” tweeted Bhavish Aggarwal, co-founder and CEO Ola Cabs wrote on Twitter.

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The beneficiary firm will be free to select suitably advanced technology and the corresponding equipment, raw materials and other intermediates for setting up a cell manufacturing facility to meet any application.

The PLI scheme for Advanced Chemistry Cell (ACC) (Rs 18,000 crore) along with the already launched PLI Scheme for the automotive sector (Rs 25,938 crore) and Faster Adaption of Manufacturing of Electric Vehicles (FAME) (Rs 10,000 crore) will enable India to shift from traditional fossil fuel-based automobile transportation system to environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles (EV) based system, said the statement by Ministry of Heavy Industries.

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The ministry said that through these schemes the government aims to achieve greater domestic value addition and ensure that the levelised cost of battery manufacturing in India is globally competitive. It also aims to facilitate battery storage demand creation for both electric vehicles and stationary storage along with the development of a complete domestic supply chain and Foreign Direct Investment in the country.

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“The overwhelming response shows that Industry has reposed its faith in India’s stellar progress as a world-class manufacturing destination which resonates strongly with Hon’ble Prime Minister’s clarion call of Atma NirbharBharat – a self-reliant India,” Union Cabinet Minister for Heavy Industries Mahendra Nath Pandey, said in the statement.