Cabinet has approved the Department of Heavy Industry’s proposal to implement
the Production Linked Incentive (PLI) Scheme 'National Programme on Advanced
Chemistry Cell (ACC) Battery Storage’. This PLI scheme will achieve a
manufacturing capacity of 50 GWh of ACC and an additional 5 GWh of niche ACC
with a Rs 181 billion overlay.
can store electric energy in the form of chemical or electrochemical energy and
convert it back into electric energy when needed. Many sectors such as electric
vehicles, solar rooftop, consumer electronics, and advanced electricity grids
use this technology.
many companies have started investing in these battery packs, the production
capacity in the country remains quite low as compared to global averages. As of
now, most of the demand for ACC in the country is met through imports. The new
scheme will help in preventing the dependency on imports and will also support
the Atmanirbhar Bharat initiative.
to the government, the incentive will be paid out based on the energy
efficiency, sales, localisation levels and battery life cycle. Companies
seeking the benefits will have to achieve domestic addition of 25% and make an
investment of Rs 2.25 billion/GWh within the first two years, and then increase
domestic value to 60% in the next five years.
manufacturers will cater to the needs of the consumer electronics, EV and
electricity grids sectors. The Society of Manufacturers of Electric Vehicles
(SMEV) mentioned that this incentive scheme will bring down the production cost
of EVs since batteries are the most expensive part of an electric vehicle. As a
result, the industry will attract
huge investments in the next couple of years.
to Sohinder Gill, Director General, SMEV, the PLI scheme for promoting battery
storage will also strengthen the government’s ‘Make in India’ initiative. Some
of the outcomes expected from the PLI initiative are:
Direct investment of about Rs 450 billion in ACC battery
storage manufacturing projects
Higher demand for battery storage in India
Increased demand for EVs
Import substitution of about Rs 200 billion every year
Promotion of niche cell technologies
PIB press release, Livemint, The Economic Times
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