10 companies place bid for government’s battery manufacturing scheme
Ten businesses have submitted bids for the government's Rs 18,100-crore Advanced Cell Chemistry (ACC) production-linked incentive (PLI) scheme, including Mahindra & Mahindra (M&M), Ola Electric, Amara Raja Batteries, and Exide Industries. Reliance New Energy Solar Limited, Hyundai Global Motors Company Limited, Lucas-TVS Limited, Rajesh Exports Limited, Larsen & Toubro Limited, and India Power Corporation Limited are among the other bidders.
The Ministry of Heavy Industries authorised the project in May, with the goal of achieving a local cell manufacturing capacity of 50GWh of ACC in India. Between October 22, 2021, to midnight on January 14, 2022, the application window was open.
The industry has responded in force, with ten offers totaling 130GWh, more than double the required capacity.
| 1 | Reliance New Energy Solar Limited |
| 2 | Hyundai Global Motors Company Limited |
| 3 | Ola Electric Mobility |
| 4 | Lucas-TVS |
| 5 | Mahindra & Mahindra |
| 6 | Amara Raja Batteries |
| 7 | Exide Industries |
| 8 | Rajesh Exports |
| 9 | Larsen & Toubro |
| 10 | India Power Corporation |
The winning competitors will be required to invest in and build a local cell manufacturing capacity within two years in order to be eligible for the government's incentive payments over a five-year period. The beneficiary company, on the other hand, will be free to select the appropriate advanced cell technology, plant and machinery, raw materials, and other intermediate items for the facility's construction.
The ACC PLI scheme intends to encourage the sector to stimulate fresh investments in the indigenous supply chain, assuring deep localisation for battery manufacture in India, given the growth in sales of electric vehicles in India - across vehicle segments. It also aims to boost demand for both electric vehicles and stationary storage, as well as bringing foreign direct investment into the country. Slashing India's crude oil import cost is one of the benefits being pursued.
The ACC PLI scheme (Rs 18,100 crore), along with the already-launched PLI scheme for the automotive sector (Rs 25,938 crore) and the Faster Adaption of Manufacturing of Electric Vehicles (FAME) (Rs 10,000 crore), will enable India to transition from a traditional fossil fuel-based automobile transportation system to an environmentally cleaner, sustainable, advanced, and efficient EV-based system, according to the ministry.
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