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 | |
|---|---|
| 1 | Reliance New Energy Solar Limited |
| 2 | Hyundai Global Motors Company Limited |
| 3 | Ola Electric Mobility |
| 4 | Lucas-TVS |
| 5 | Mahindra & Mahindra |
| 6 | Amara Raja Batteries |
| 7 | Exide Industries |
| 8 | Rajesh Exports |
| 9 | Larsen & Toubro |
| 10 | India 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.
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