JOIN USCentre approves Rs 18,100 crore PLI scheme for promoting ACC battery manufacturing
To facilitate demand creation for battery storage in India, the Centre on Wednesday approved the Production Linked Incentive (PLI) scheme for promoting battery storage at an estimated outlay of Rs 18,100 crore.
Union Cabinet chaired by Prime Minister Narendra Modi approved Production Linked Incentive (PLI) Scheme 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage. The scheme is expected to attract investment of Rs 45,000 crore, Information and Broadcasting Minister Prakash Javadekar told reporters after the Cabinet meeting
With the objective to promote the 'Make in India' initiative, the proposal aims to achieve a manufacturing capacity of 50 Gigawatt Hour of ACC and 5 GWh of niche ACC, he said.
ACCs are the new generation of advanced storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required.
The National Programme on Advanced Chemistry Cell (ACC) Battery Storage will reduce import dependence. It will help to cut down import which is around Rs.20,000 crore every year.
ACC battery Storage manufacturers will be selected through a transparent competitive bidding process. The manufacturing facility would have to be commissioned within a period of two years. The incentive will be disbursed thereafter over a period of five years, the Minister said.
Each selected ACC battery Storage manufacturer would have to commit to set-up an ACC manufacturing facility of minimum five (5) GWh capacity and ensure a minimum 60% domestic value addition at the Project level within five years.
Furthermore, the beneficiary firms have to achieve a domestic value addition of at least 25% and incur the mandatory investment of Rs 225 crore/GWh within 2 years (at the Mother Unit Level) and raise it to 60% domestic value addition within 5 years, either at Mother Unit, in-case of an Integrated Unit, or at the Project Level, in-case of "Hub & Spoke" structure.
While several companies have already started investing in battery packs, the capacities of these facilities are too small when compared to global averages, but there still is negligible investment in manufacturing, along with value addition, of ACCs in India.
The scheme will promote green growth and use local products like copper and bauxite to a large extent, he added