MHI appoints Engineers India Limited to monitor progress of ACC-PLI scheme beneficiaries

The Ministry of Heavy Industries (MHI), Government of India on Thursday (August 24) announced that it has appointed Engineers India Limited (EIL) as Independent Engineer to monitor progress of the work of beneficiaries of the Advanced Chemistry Cells (ACC) PLI scheme.

In May 2021, the Cabinet approved PLI (Production Linked Incentive) scheme on "National Programme on Advanced Chemistry Cell (ACC) Battery Storage" for achieving manufacturing capacity of 50 GWh of ACC and 5 GWh of "Niche" ACC with an outlay of INR18,100 crore.

In March 2022, four companies namely, Ola Electric Mobility, Hyundai Global Motors, Reliance New Energy Solar, and Rajesh Exports were selected for incentive under PLI scheme for ACC Battery Storage. However, Hyundai Global Motors which was allotted 20 GWh capacity pulled out of the scheme later, following which MHI opened the window for re-bidding of the balance 20GWh capacity under the scheme.

MHI awarded three beneficiaries, Ola Cell Technologies Pvt. Ltd., ACC Energy Storage Pvt Ltd. (fully owned subsidiary of Rajesh Exports) and Reliance New Energy Battery Storage Ltd., to build 30GWh capacity.

"The Ministry has appointed EIP as independent engineers to monitor the progress of work of the selected beneficiaries," MHI stated in an official release.

The total investment by these beneficiary organizations to date has reached up to INR 2090 crore, and the three beneficiaries have almost completed the prototype testing and are in the process of beginning commercial production in phases in FY 2024, MHI added.

Ola Cell Technologies is setting up its manufacturing facility in Krishnagiri, in Southern Indian State of Tamil Nadu, whereas ACC Energy Storage is setting up its facility in Dharwad, Karnataka and Reliance New Energy Battery Storage is setting up facility in Jamnagar, Gujarat.

The ACC-PLI scheme on battery storage was approved by the Indian Government to strengthen domestic battery manufacturing in India to reduce India's reliance on battery cell imports as part of AatmaNirbhar Bharat (self-reliant India) initiative.