A total of four companies out of the ten that submitted their bids, have been selected for incentive under production linked incentive (PLI) scheme for advanced chemistry cell (ACC) battery storage, according to a statement released by the Ministry of Heavy Industries on Thursday.
The selected companies which include Reliance New Energy Solar, Ola Electric Mobility, Hyundai Global Motors Co and Rajesh Exports will receive incentives under India's Rs 18,100 crore-programme to boost local battery cell production.
The remaining five including Mahindra & Mahindra, Larsen & Toubro, Amara Raja Batteries, India Power Corp and Exide Industries that are not successful in securing allocation are placed under a waiting list.
The selected companies will have to set up the manufacturing facility 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.
“India has the strongest Government support for electrification in the whole world! Excited to be selected for the PLI scheme for manufacturing world class cells in India. Today, 90 per cent of global capacity is in China. We will reverse that and make India a global hub for EVs and cell tech,” tweeted Bhavish Aggwarwal, co-founder and CEO Ola Cabs wrote on Twitter.
The beneficiary firm shall be free to choose suitable advanced technology and the corresponding plant and machinery, raw material and other intermediate goods for setting up cell manufacturing facilities to cater to any application.
The PLI scheme for ACC 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, said the statement.
Through these schemes the government seeks to achieve greater domestic value addition and ensure that the “levelised cost of battery manufacturing in India is globally competitive,” said the statement. It also aims to facilitate battery storage demand creation for both electric vehicles and stationary storage along with development of a complete domestic supply chain and Foreign Direct Investment in the country.
“The overwhelming response shows that Industry has reposed its faith in India’s stellar progress as a world class manufacturing destination which resonates strongly with Hon’ble Prime Minister’s clarion call of Atma NirbharBharat - a self-reliant India,” Union Cabinet Minister for Heavy Industries Mahendra Nath Pandey, said in the statement.
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