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New Delhi: In the government’s Advanced Chemistry Cell Production-Linked Incentive (PLI-ACC) scheme for 50GWh, there have been takes for 30 GWh and they are in the process of setting up the facilities for that. “By next month the remaining 20GWh also will be on stream, according to Dr. Hanif Qureshi, Joint Secretary of Ministry of Heavy Industries.
In his key-note address at the ET Smart Factory Summit 2023 on Tuesday Dr. Qureshi said, “Out of the government’s target of 50 GWh, 30 GWh has already been given and by next month, the remaining 20 GW will also come out.”
Under the PLI ACC) scheme, a total of 50 GWh ACC manufacturing capacity had been allocated to four successful bidders in March 2022 through the request for proposal (RFP) and competitive bidding process.However, one of the previously awarded bidders had been disqualified due to non-compliance with the stipulated terms and conditions of the RFP and bid documentation.
The other three beneficiaries are Ola Cell Technologies Pvt. Ltd, ACC Energy Storage Pvt Ltd, and Reliance New Energy Battery Storage Ltd . With a target to achieve 50GWh production by 2030, this disqualification left 20 GWh of ACC manufacturing capacity unclaimed and was available.
Last month, the Union government said commercial production under the PLI scheme for ACC manufacturing, which includes India’s INR 18,100-crore programme to boost local battery cell production, is likely to commence in phases, from the current financial year.
Ola Cell Technologies is setting up its manufacturing facility in Krishnagiri, Tamil Nadu, while ACC Energy Storage is setting up its facility in Dharwad, Karnataka and Reliance New Energy Battery Storage is setting up facility in Jamnagar, Gujarat, generating employment opportunities for the local residents.
It was earlier reported that Reliance New Energy Limited has also acquired three overseas companies which are into ACC manufacturing business.
A good manufacturing system is necessary in India to achieve the NITI Ayog’s estimate of EVs growing at a CAGR of 49% in India. “Manufacturing alone is not the solution, it’s indigenous manufacturing that has to be brought in the system.”
Mentioning the incentives in foreign countries, he said that the incentives for indigenous manufacturing have been reduced in the past 6-7 years, as the countries have reached their electrification targets.
At the recently concluded SIAM Annual Convention, Kamran Rizvi, Secretary, Ministry of Heavy Industries talked about the role of Government support in the form of subsidies under the FAME scheme. He said that while some countries, like China, and the UK, are withdrawing or reducing EV subsidies, India is continuing to spend more money to support the EV industry. However, the industry was also encouraged to collectively advance with a subsidy-free business model. The Government is also promoting the adoption of Hydrogen technologies as part of its push for clean mobility.
