Allotment under PLI Scheme for Advanced Chemistry Cell Battery Storage
24th March 2022
A total of 4 companies have selected for incentive under Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage. This includes Reliance New Energy Solar Limited, Ola Electric Mobility Private Limited, Hyundai Global Motors Company Limited and Rajesh Exports Limited
These companies will receive incentives under India's Rs 18,100 crore programme to boost local battery cell production
10 companies had submitted their bids under the Advanced Chemistry Cell (ACC) Battery Storage Programme in India for which Request for Proposal (RFP) was released by Ministry of Heavy Industries (MHI) on 22nd October 2021
All the 10 bids were evaluated and 9 companies were found responsive and meeting the conditions of eligibility as per the requirements under the RFP. Accordingly, the Financial bids for the qualified bidders were opened after announcement of the results of technical evaluation under transparent global tender process of RFP
Final evaluation of the Selected Bidders was carried out as per Quality & Cost Based Selection (QCBS) mechanism and the bidders were ranked on the basis of their combined technical and financial score. The ACC capacities have been allocated in order of their rank, till a cumulative capacity of 50 GWh per year. Shortlisted Bidders that were not successful in securing allocation were placed under a waiting list
Selected Bidders:
The manufacturing facility would have to be set up within a period of two years. The incentive will be disbursed thereafter over a period of five years on sale of batteries manufactured in India
Background:
The Government had approved the Production Linked Incentive (PLI) Scheme 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ for achieving manufacturing capacity of Fifty (50) Giga Watt Hour (GWh) of ACC for enhancing India’s Manufacturing Capabilities with a budgetary outlay of Rs 18,100 crore. Under the said initiative the emphasis of the Government is to achieve greater domestic value addition, while at the same time ensure that the levelized cost of battery manufacturing in India is globally competitive
The program is designed in such a manner that it is technology agnostic. The beneficiary firm shall be free to choose suitable advanced technology and the corresponding plant & machinery, raw material and other intermediate goods for setting up cell manufacturing facility to cater to any application
The Program envisages an investment which will boost domestic manufacturing & also facilitate battery storage demand creation for both electric vehicles and stationary storage along with development of a complete domestic supply chain & Foreign Direct Investment in the country. ACC PLI scheme is expected to accelerate EV adoption and hence translate into net savings of Rs 2,00,000 crore to Rs 2,50,000 crore on account of oil import bill during the period of this Programme and increase the share of renewable energy at the national grid level
This PLI scheme for Advanced Chemistry Cell (ACC) (Rs 18,100 crore) along with the already launched PLI Scheme for automotive sector (Rs 25,938 crore) and Faster Adaption of Manufacturing of Electric Vehicles (FAME) (Rs 10,000 crore) will enable India to leapfrog from traditional fossil fuel-based automobile transportation system to environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles (EV) based system