ACC PLI scheme: Reliance, Ola, Hyundai, Rajesh Exports qualify for incentives
Ola Electric Mobility, Hyundai Global Motors, Reliance New Energy Solar, and Rajesh Exports have successfully cleared the technical bids evaluation by Union Ministry of Heavy Industries (MHI) for selection of manufacturers under the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cells (ACC) in India, according to media reports.
An official statement confirming the selection of manufacturers is expected from the ministry shortly. It had earlier received bids from 10 companies with a quoted capacity of 128 GWh in total.
Of the four companies who are reportedly qualified for incentives under the scheme, Reliance New Energy, Ola Electric Mobility, and Hyundai Global Motors had a quoted capacity of 20 GWh each in their RFPs, while Karnataka-based Rajesh Exports had quoted a capacity of 5 GWh.
Reports say that Ola and Hyundai are approved incentives for 20 GWh each, while Reliance New Solar and Rajesh Exports are expected to get incentives for 5 GWh each.
Selected bidders have to set up their ACC battery manufacturing facility within a period of two years. Once the companies commence production, the approved incentives will be disbursed over a period of five years on the sales of their locally-made batteries.
Also, these production units must witness a minimum value-addition 25 percent within 2 years and 60 percent within 5 years from the appointed date, either at the mother unit level in case of an integrated unit, or at the project level through indigenous manufacturers, in a hub and spoke structure.
To qualify for the scheme, bidders must meet a minimum net worth of INR 225 crore per GWh, as per the capacity specified in its technical bids. Companies were allowed to submit for any capacity in case of meeting a total net worth criteria of at least INR 1,500 crore.
Although the scheme was envisaged for a manufacturing capacity of 50 Giga Watt Hour (GWh) with a budgetary outlay of Rs 18,100 crore, the response from the local companies were tremendous, as the cumulative quoted capacities as per the RFPs submitted by 10 companies was 2.6 times higher than approval limit.