Home » News » Business » ACC Battery PLI Scheme worth Rs 18,000 Cr: Reliance, Ola Electric, 2 Others Win Bids

ACC Battery PLI Scheme worth Rs 18,000 Cr: Reliance, Ola Electric, 2 Others Win Bids

Image used for representation. (Photo: Manav Sinha/News18.com)

Image used for representation. (Photo: Manav Sinha/News18.com)

These 4 companies will receive incentives under the PLI scheme to boost local battery cell production

Reliance New Energy Solar, Ola Electric Mobility, Hyundai Global Motors and Rajesh Exports have been selected for incentives under the Rs 18,100-crore production-linked incentive (PLI) scheme for advanced chemistry cell (ACC) battery storage, according to an official statement.

These companies will receive the incentives under the scheme to boost local battery cell production, the Ministry of Heavy Industries said in the statement on Thursday.

“The government approved the PLI Scheme ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ for achieving manufacturing capacity of 50 gigawatt-hour (GWh) of ACC for enhancing India’s manufacturing capabilities with a budgetary outlay of Rs 18,100 crore,” the ministry stated.

Out of the total 50 GWh capacity, Rajesh Exports and Reliance New Energy Solar have been awarded 5 GWh each while Hyundai and Ola awarded for 20 GWh each.

The manufacturing facility would have to be set up within two years. The incentive will be disbursed thereafter over a period of five years on the sale of batteries manufactured in India.

Union Minister for Heavy Industries Mahendra Nath Pandey said, “The increase in demand for EVs (electric vehicles) due to a favourable regulatory framework has mainly attracted investment in this sector. Today, big companies are investing in electric vehicle manufacturing in India and are interested to join us.”

He added that growth in the EV segment of the auto industry will definitely help in achieving India’s commitment to ‘Panchtantra’ given by Prime Minister Narendra Modi in COP 26 and will provide huge employment opportunities to Indian youth.

“We should give them more encouragement and keep trying to make India a manufacturing hub,” Pandey.

A total of 10 companies submitted their bids under the scheme, for which a request for proposal (RFP) was released by the ministry in October last year. The scheme was open for receiving applications till January 14 this year and the technical bids were opened on January 15.

According to the statement, all 10 bids were evaluated and nine companies were found responsive and meeting the conditions of eligibility as per the requirements under the RFP.

“The overwhelming response shows that the industry has reposed its faith in India’s stellar progress as a world-class manufacturing destination that resonates strongly with the prime minister’s clarion call of Atmanirbhar Bharat (a self-reliant India),” the ministry said.

The PLI programme envisages an investment that will boost domestic manufacturing. It will facilitate battery storage demand creation for both EVs and stationary storage, develop a complete domestic supply chain and spur foreign direct investment in the country, the statement said.

The ACC PLI scheme is expected to accelerate EV adoption and, hence, translate into net savings of Rs 2 lakh crore to Rs 2.5 lakh crore on account of oil import bill during the period of this programme, it added.

The ministry also stated that it will increase the share of renewable energy at the national grid level.

This PLI Scheme for ACC, along with the already launched PLI Scheme for Automotive Sector (worth Rs 25,938 crore) and the Faster Adaption of Manufacturing of Electric Vehicles (Rs 10,000 crore) will enable India to leapfrog from traditional fossil fuel-based automobile transportation system to environmentally cleaner, sustainable, advanced and more efficient EV-based system.

Note: Network18 and TV18 – the companies that operate news18.com – are controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary

Read all the Latest News , Breaking News and Ukraine-Russia War Live Updates here.

first published:March 24, 2022, 15:37 IST