Centre notifies Rs18,100cr PLI scheme for promoting manufacturing of ACC batteries

Incentive will not be offered to the conventional battery pack segment of the industry as it is already happening in India.

Jun 22, 2021 09:06 IST India Infoline News Service

According to a notification issued by the Department of Heavy Industry, Production Linked Incentive (PLI) scheme, ‘NATIONAL PROGRAMME ON ADVANCED CHEMISTRY CELL (ACC) BATTERY STORAGE’ is  introduced for implementation of giga-scale ACC manufacturing facilities in India.

Advance Chemistry Cells (ACCs) are the new generation advance energy storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required.

Incentive will not be offered to the conventional battery pack segment of the industry as it is already happening in India.

The Production Linked Incentive scheme, ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ has been formulated with the approval of Union Cabinet. 

The scheme envisages setting up of a cumulative ACC manufacturing capacity of 50 GWh for ACCs and an additional cumulative capacity of 5 GWh for Niche ACC Technologies

According to the Cabinet, Incentives will be offered only to those firms that have been allocated ACC production capacity (with cumulative capacity for all beneficiary firms combined together 50 GWh) under the said Programme through a transparent mechanism by inviting the Request for Proposal (RFP). The beneficiary firm will have to commit to set up minimum of five (5) GWh of ACCs manufacturing facility. The total annual cash subsidy to be disbursed by the Government will be capped at 20GWh per beneficiary firm.

The total incentive pay out over the period of 5 years of the Scheme will be Rs18,100cr.

All the demand for the ACCs is currently being met through imports in India.

Further, the beneficiary has to ensure a domestic value addition of at least 25 percent and incur the mandatory investment (Rs 225 crore /GWh) within two years. The domestic value addition has to be increased to 60 percent within five years, either at mother unit, in-case of an integrated unit, or at the project level, in-case of ''Hub & Spoke'' structure.

An Empowered Group of Secretaries chaired by the Cabinet Secretary will monitor the PLI scheme, undertake periodic review of the outgo, and take appropriate action to ensure that the expenditure is within the prescribed outlay.

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