Reliance Industries Ltd’s (RIL) New Energy arm, Ola Electric Mobility Private Limited and Rajesh Exports Limited are the three companies that have signed the Program Agreement under (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage, a government release said on Friday.
These companies will receive incentives under India’s ₹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.
The companies were among four bidders selected by the government in March to build a total of 50 gigawatt hours (Gwh) of battery storage capacity under a production-linked incentive programme.
A total of 10 bids were received from companies with 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 a period of two years. The incentive will be disbursed thereafter over a period of five years on sale of batteries manufactured in India.
The Government has approved the Production Linked Incentive (PLI) Scheme ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ for achieving manufacturing capacity of Fifty (50) Giga Watt Hour (GWh) of ACC for Enhancing India’s Manufacturing Capabilities with a budgetary outlay of ₹18,100 crore.
Under the said initiative the emphasis of the Government is to achieve greater domestic value addition, while at the same time ensure that the levelized cost of battery manufacturing in India is globally competitive.
Under the program, the beneficiary firm shall be free to choose suitable advanced technology and the corresponding plant & machinery, raw material, and other intermediate goods for setting up cell manufacturing facility to cater to any application.
“This PLI scheme for Advanced Chemistry Cell (ACC) ( ₹18,100 crore) along with the already launched PLI Scheme for automotive sector ( ₹25,938 crore) and Faster Adoption of Manufacturing of Electric Vehicles (FAME) ( ₹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 government’s release stated.