Three companies signed PLI agreement for Advanced Chemistry Cell Battery Storage
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Three companies signed PLI agreement for Advanced Chemistry Cell Battery Storage.

The three companies will set up a battery manufacturing plant in India and receive incentives under the ₹ 18,100 crore ACC PLI agreement.

The Ministry of Heavy Industries signed the Program Agreement under Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage on 28th July 2022 with three companies.

The companies are Reliance New Energy Limited, Ola Electric Mobility Private Limited, and Rajesh Exports Limited. These companies will set up a battery manufacturing plant in India and receive incentives under the ₹ 18,100 crore ACC PLI program.

A total of 10 bids were received from companies with a manufacturing capacity of 128 GWh under the PLI Scheme of ACC Battery Storage.

To get the benefits of the PLI scheme, companies have to set up a manufacturing facility within two years. The incentives will be given to the companies over five years on the sale of batteries manufactured in India.

The government of India wants Indian companies to manufacture cells in India. So it has approved the Production Linked Incentive (PLI) Scheme ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ for achieving a manufacturing capacity of Fifty Giga Watt Hour(GWh). Under the PLI scheme, the government has announced a total incentive of ₹18,100 crores.

The ACC PLI scheme will boost domestic manufacturing and also facilitate battery storage demand creation for both electric vehicles and stationary storage. It will also reduce the import of crude oil to a significant extent.

This PLI scheme for Advanced Chemistry Cell (ACC) (₹18,100 crores) along with the already launched PLI Scheme for the automotive sector (₹25,938 crores) and Faster Adoption of Manufacturing of Electric Vehicles (FAME) (₹10,000 crores) will enable India to transition from traditional fossil fuel-based automobile transportation system to environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles (EV) based system.

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 Ji in COP 26”.

Also Read: Total number of Electric Vehicles in India is over 13 lakh, reveals the Government.

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