Industry Odisha Bureau, Aug 20: With an aim to enhance domestic cell production, reduce manufacturing costs as well as reliance on imports, along with positioning itself as a global leader in ACC battery manufacturing for creating a robust ecosystem for electric mobility and battery storage in the country, the Government of India (GoI) has reportedly come up with its ambitious PLI ACC (Advanced Chemistry Cell) scheme.
Media reports, citing information availed from the Ministry of Heavy Industries, have stated that, “The scheme was approved by the Union Cabinet on May 12, 2021, with a budgetary outlay of Rs 18,100 crores for a cumulative ACC manufacturing capacity of 50 gigawatt per hour (GWh). The scheme includes a 2-year gestation period and a 5-year performance period with a total incentive payout over 5 years of Rs 18,000 crores.”
Media reports, citing information availed from the Ministry of Heavy Industries, have added that, “The scheme has allocated 30 GWh to three beneficiary firms with 20 GWh available for fresh allocation. The scheme also earmarked 10 GWh for Grid Scale Stationary Storage (GSSS) applications.”
Media reports, citing information availed from the Press Information Bureau (PIB), have further stated that, “The scheme has been awarded to the Reliance Industries Limited for 10 GWh capacity with the remaining five shortlisted bidders placed on a waiting list. The scheme is structured to incentivize battery cell manufacturers based on domestic production output and rewarding them for achieveing a domestic value addition of at least 25% and raising it to 60% within 5 years.”
Media reports, citing government sources, have also stated that, “A report by the Rajya Sabha Department-Related Standing Committee on Industry on March 11 has revaled that the cell makers told the Ministry of Heavy Industries that they faced supply challenges for specialized machines and skilled manpower from China leading to delays in setting up capacity. The Committee, thus, recommended that the Ministry review the progress made by all beneficiaries, provide conditional timeline extensions for verifiable constraints and reallocate the capacity awarded to non-performers.”
Media reports, citing government sources, have added that, “According to the Committee’s August 6 Action-Taken Report on the recommendations made in March, the Ministry of Heavy Industries reviewed the progress made under the scheme and said it was examining requests from beneficiaries for an extension of up to two years to achieve PLI ACC milestones.”
