In a boot for electric vehicle (EV) and solar cell segments, the Union Cabinet on Tuesday gave the nod to implement Production Linked Incentive (PLI) for enhancing cell battery storage manufacturing in the country.
The PLI scheme ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ aims to achieve a manufacturing capacity of 50 Giga Watt Hour (GWh) of Advanced Chemistry Cell (ACC) and 5 GWh of ‘niche’ ACC with an outlay of Rs18,100 crore.
The scheme aims to set up a cumulative 50 GWh of ACC manufacturing facilities in India under the programme. It aims for direct investment of around Rs 45,000 crore in ACC Battery storage manufacturing projects in the country and facilitate demand creation for battery storage in India.
The manufacturing of ACCs will facilitate demand for EVs, which are proven to be significantly less polluting, according to a statement from Union Cabinet.
ACCs are the new generation of advanced storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required.
Consumer electronics, electric vehicles, advanced electricity grids, solar rooftop etc. which are major battery consuming sectors are expected to achieve robust growth in the coming years. It is expected that the dominant battery technologies will control some of the world’s largest growth sectors.
While several companies have already started investing in battery packs, though the capacities of these facilities are too small when compared to global averages, but there still is negligible investment in manufacturing, along with value addition, of ACCs in India.
All the demand of the ACCs is currently being met through imports in India. The national programme on ACC battery storage will reduce import dependence. It will also support the Atmanirbhar Bharat initiative.
“ACC battery storage manufacturers will be selected through a transparent competitive bidding process. The manufacturing facility would have to be commissioned within a period of two years. The incentive will be disbursed thereafter over a period of five years.
The incentive amount will increase with increased specific energy density & cycles and increased local value addition. Each selected ACC battery storage manufacturer would have to commit to set-up an ACC manufacturing facility of minimum 5 GWh capacity and ensure a minimum 60% domestic value addition at the project level within five years.
Furthermore, the beneficiary firms have to achieve a domestic value addition of atleast 25% and incur the mandatory investment Rs 225 crore /GWh within 2 Years (at the Mother Unit Level) and raise it to 60% domestic value addition within 5 Years, either at Mother Unit, in-case of an Integrated Unit, or at the Project Level, in-case of “Hub & Spoke” structure.
