Govt yet to allot PLI capacity released by Hyundai Global

1 min read . Updated: 11 Nov 2022, 01:48 AM IST

India will become self-sufficient in lithium-ion batteries by 2024-25 and may even become a net exporter. Bloomberg

The scheme aims to increase production of batteries to boost the electric vehicles ecosystem

NEW DELHI :

The government is yet to allocate the 20 GWh capacity of advanced chemistry cell battery storage under the production-linked incentive (PLI) scheme, after Hyundai Global Motors withdrew from the scheme.

The scheme aims to increase production of batteries to boost the electric vehicles ecosystem and reduce import dependence. On 29 August, Mint reported that Hyundai Global withdrew from the ₹18,100 crore scheme, after South Korea’s Hyundai Motor Co. said it had nothing to do with the company that bid under the scheme.

In an interview, Union minister for heavy industries Mahendra Nath Pandey said the government will decide on allocating the excess capacity going ahead.

“They (Hyundai Global) have withdrawn voluntarily. We have not decided on that. There is not much discussion on this right now, as we are well on track to achieve our target. Further, the selected companies are setting up capacities voluntarily, apart from the capacity PLI scheme," Pandey said.

He said the government had set target of setting up 50 GWh, while the selected companies voluntarily plan to set up 75 GWh, taking India’s battery storage manufacturing capacity way above target.

India will become self-sufficient in lithium-ion batteries by 2024-25 and may even become a net exporter, the minister said, adding by 2030, its total capacity of battery manufacturing will be 163 GWh.

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After the government named the selected applicants, Hyundai Motor India Ltd (HMIL) issued a public notice on 15 July, saying Hyundai Global Motors is not an affiliate, subsidiary or group company of either Hyundai Motor Co. or HMIL. On 29 August, Mint reported that Hyundai Global has withdrawn from the scheme.Hyundai Global Motor Co. and Ola Electric Mobility were approved a capacity of 20 GWh each under scheme, while Reliance New Energy and Rajesh Exports were allocated 5 GWh capacity each.

ABOUT THE AUTHOR

Rituraj Baruah

Rituraj Baruah is a senior correspondent at Mint, reporting on housing, urban affairs, small businesses and energy. He has reported on diverse sectors over the last six years including, commodities and stocks market, insolvency and real estate. He has previous stints at Cogencis Information Services, Indo-Asian News Service (IANS) and Inc42.