Battery Storage PLI: 4 Companies Receive Approval For Incentives

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Shortlisted Bidders that are not successful in securing allocation are placed under a waiting list

Reliance New Energy Solar Limited; Ola Electric Mobility Private Limited; Hyundai Global Motors Company Limited and Rajesh Exports Limited are the 4 companies which have been selected for incentive under Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage, the Ministry of Heavy Industries said in a statement.

These companies will receive incentives under India’s ₹18,100 crore programme to boost local battery cell production. 10 companies submitted their bids under the Advanced Chemistry Cell (ACC) Battery Storage Programme in India for which Request for Proposal (RFP) was released by Ministry of Heavy Industries (MHI) on 22nd October 2021. All the 10 bids were evaluated and 9 companies were found responsive and meeting the conditions of eligibility as per the requirements under the RFP.

Final evaluation of the Selected Bidders was carried out as per Quality & Cost Based Selection (QCBS) mechanism and the bidders were ranked on the basis of their combined technical and financial score. The ACC capacities have been allocated in order of their rank, till a cumulative capacity of 50 GWh per year. Shortlisted Bidders that are not successful in securing allocation are placed under a waiting list.

These include: Mahindra & Mahindra Limited, Exide Industries Limited, Larsen & Toubro Limited, Amara Raja Batteries Limited, India Power Corporation Limited.

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 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.

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 Adaption 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.

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