10 companies place bid for government’s battery manufacturing scheme

    Beneficiary must invest and install a cell manufacturing capacity within two years to be eligible for the Rs 18,100-crore PLI scheme.

    Published On Jan 17, 2022 03:45:00 PM

    23,749 Views

    EV battery manufacturing

    Government’s battery manufacturing PLI scheme

    Listen to this Article

    Ten companies including Mahindra & Mahindra (M&M), Ola Electric, Amara Raja Batteries and Exide Industries have placed bids for the government’s Rs 18,100-crore Advanced Cell Chemistry (ACC) production-linked incentive (PLI) scheme. The other companies to place the bid are Reliance New Energy Solar Limited, Hyundai Global Motors Company Limited, Lucas-TVS Limited, Rajesh Exports Limited, Larsen & Toubro Limited and India Power Corporation Limited.

    • Scheme has received 10 bids with a cumulative capacity of 130GWh
    • Incentive aims at local cell manufacturing
    • Government hopes to reduce country’s crude oil imports

    The scheme, which was approved last May by the Ministry of Heavy Industries, aims to achieve a local cell manufacturing capacity of 50GWh of ACC in India. The application window remained open between October 22, 2021 and the midnight of January 14, 2022.

    The ministry has received an overwhelming response from the industry with the 10 bids amounting to a cumulative manufacturing capacity of 130GWh, two-and-a-half times more than the stipulated capacity.

    Ten bidders for Advanced Cell Chemistry PLI scheme
    1Reliance New Energy Solar Limited
    2Hyundai Global Motors Company Limited
    3Ola Electric Mobility
    4Lucas-TVS
    5Mahindra & Mahindra
    6Amara Raja Batteries
    7Exide Industries
    8Rajesh Exports
    9Larsen & Toubro
    10India Power Corporation

    The incentive structure will call for the winning participants to invest and install a local cell manufacturing capacity within two years to be eligible for disbursement of the incentive from the government over a five-year period thereafter. The beneficiary firm, however, will be free to choose the suitable advanced cell technology, corresponding plant and machinery, raw material and other intermediate goods required for setting up the facility.

    Given the boom in sales of electric vehicles in India – across vehicle segments – the ACC PLI scheme also aims to encourage the industry to promote fresh investments in indigenous supply chain, ensuring deep localisation for battery manufacturing in the country. It also envisages enhancing demand creation for both, EVs as well as stationary storage, and attracting foreign direct investment into the country. Among the benefits being targeted are slashing India’s crude oil import bill.

    The ministry said that the ACC PLI scheme (Rs 18,100 crore), along with the already launched PLI scheme for automotive sector (Rs 25,938 crore) and Faster Adaption 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 EV-based system.

    What are your thoughts on this scheme and do you think it will boost cell manufacturing in the country? Let us know in the comments below.

    Also see:

    Maharashtra extends early bird benefits for EVs till March 31

    India's state EV policies: how do they compare?

    Copyright (c) Autocar India. All rights reserved.

    Comments

    ×
    img

    No comments yet. Be the first to comment.

    Ask Autocar Anything about Car and Bike Buying and Maintenance Advices
    Need an expert opinion on your car and bike related queries?
    Ask Now

    Search By Car Price

    Poll of the month

    Which according to you was India's first hot-hatchback?

    Fiat Palio 1.6

     

    47.67%

    First-gen Maruti Zen

     

    39.53%

    Chevrolet Optra SRV

     

    12.79%

    Total Votes : 602
    Sign up for our newsletter

    Get all the latest updates from the automobile universe