Reliance New Energy, Ola Electric, and Rajesh Exports Ltd signs program pact under ACC-PLI scheme: MHI
Ministry of Heavy Industries has announced that three selected bidders signed the Program Agreement under Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage.
Commenting on the PLI Scheme for ACC Battery Storage, Union Cabinet Minister for Heavy Industries Dr. Mahendra Nath Pandey said that - "This embarks a new chapter in India's manufacturing industry as we set the vision for battery manufacturing and compete globally with other nations in this sunrise sector. This will be favorable to the EV ecosystem and energy storage market as it will support the demand for EVs and renewable and attract investment in this sector. Today big companies are investing in battery manufacturing in India. We should support them and make India a truly global manufacturing hub. This will also help us to achieve India's commitment to Panchamrit given by Hon'ble PM Modi in COP 26".
The companies are Reliance New Energy Limited, Ola Electric Mobility Private Limited, and Rajesh Exports Limited. These companies will receive incentives under India's Rs. 18,100 crore program. In addition to the capacities allocated by the Ministry of Heavy Industries under the PLI Program, private players are expected to create battery manufacturing capacity to the tune of~95 GWh.
A total of 10 bids were received from companies with a manufacturing capacity of 128 GWh under the PLI Scheme of ACC Battery Storage. Under the ACC PLI program, the manufacturing facility would have to be set up within two years. The incentive will be disbursed thereafter over five years on the sale of batteries manufactured in India.
The Minister of State Mr. Krishna Pal also congratulated the bidders who signed the Program Agreement. He said, "Government over the last few years has provided consistent policy and regulatory support and enabling frameworks for the development of the EV ecosystem in the country, ranging from FAME II, PLI Scheme for Auto and Auto components and battery manufacturing".
During the occasion, Secretary, Ministry of Heavy Industries Mr. Arun Goel said "MHI has completed the signing of PLI ACC Program in a record time of 13 months (Gazette Notified- June 2021 and Program Agreement Signed- July 2022) to promote battery manufacturing in the country in the middle of the pandemic. Now it's the time for private players to take the lead and become global champions and make the country the global hub in the energy storage segment. My best wishes to them on the journey ahead."
The Government has approved the Production Linked Incentive (PLI) Scheme 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage' for achieving a manufacturing capacity of Fifty (50) Giga Watt Hour (GWh) of ACC for Enhancing India's Manufacturing Capabilities with a budgetary outlay of ₹ 18,100 crores. Under the said initiative the emphasis of the Government is to achieve greater domestic value addition, while at the same time ensuring that the levelized cost of battery manufacturing in India is globally competitive.
The program is designed in such a manner that it is technology agnostic and hence only focuses on the desired output of the batteries. Thereby the beneficiary firm shall be free to choose suitably advanced technology and the corresponding plant & machinery, raw material, and other intermediate goods for setting up a cell manufacturing facility to cater to any application.
The Program expects an investment that will boost domestic manufacturing & also facilitate battery storage demand creation for both electric vehicles and stationary storage along with the development of a complete domestic supply chain & Foreign direct investment in the country. ACC PLI scheme is expected to directly impact the saving to the nation on account of a reduction in import of crude oil to a significant extent and increase the share of renewable at the national grid level.
This PLI scheme for Advanced Chemistry Cell (ACC) (Rs. 18,100 crore) along with the already launched PLI Scheme for the automotive sector (Rs. 25,938 crore) and Faster Adoption of Manufacturing of Electric Vehicles (FAME) (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 Electric Vehicles (EV) based system.
The industry has reposed its faith in India's stellar progress as a world-class manufacturing destination which resonates strongly with the Hon'ble Prime Minister's clarion call of AtmaNirbhar Bharat - a self-reliant India.