Govt approves advanced chemistry cell PLI scheme

The Indian Government has given its nod to the Department of Heavy Industry’s proposal for the implementation of the Production Linked Incentive (PLI) Scheme- National Programme on advanced chemistry cell (ACC) battery storage for accomplishing production capacity of 50 GWh of ACC and 5 GWh of Niche ACC at an expenditure of Rs 18,100 crore.

ACCs are the latest generation of advanced storage technologies that can store electric power both as chemical energy or electrochemical and turn it back to electric power when needed.

Main battery consuming areas such as electronics, electric vehicles, solar rooftop, etc, are expected to attain strong growth in the upcoming years. While many firms have already begun investing in battery packs, still the capacities of these facilities are very small compared to global standards, yet there is still a negligible investment in the production along with the value addition of ACCs in India.

Currently, all the demand for the ACCs is satisfied through imports in India. The National Programme on ACC will decrease import dependence.

The storage producers will get selected by a competitive bidding process. The manufacturing facility will have to be commissioned within two years, and the incentive would be distributed after five years.

The amount of incentive will rise with increased specific energy density and cycles and local value addition.

Every selected ACC battery storage producer would have to commit to establishing an ACC producing facility, ensure a minimum of 60% domestic value addition and minimum 5 GWh capacity at the project level within five years.

Moreover, the beneficiary companies have to attain a domestic value addition of at least 25% and acquire the compulsory investment of Rs 225 crore per GWh within two years and boost it to 60% domestic value addition within five years, either at the Project Level, in-case of "Hub & Spoke" structure or at Mother Unit, in-case of an Integrated Unit.

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