Government Reopens Bidding for Advanced Chemistry Cell Manufacturing

In a significant move to boost domestic manufacturing of Advanced Chemistry Cells (ACC), the government announced on Wednesday the reopening of bids for the production-linked incentives (PLI) scheme targeting 10 Giga Watt hours (GWh) of ACC manufacturing. The Ministry of Heavy Industries (MHI) stated that prospective applicants can now submit bids to establish manufacturing facilities for ACC, qualifying for incentives under the PLI ACC scheme.

The PLI scheme, known as the 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage,' was approved by the Cabinet in May 2021 with a goal to achieve a manufacturing capacity of 50 GWh of ACC, supported by an outlay of ₹18,100 crore.

The initial round of ACC PLI bidding concluded in March 2022, resulting in the allocation of a total capacity of 30 GWh to three companies. Ola Electric Mobility Pvt Ltd secured 20 GWh, while Reliance New Energy Solar Ltd and Rajesh Exports each won 5 GWh.

The MHI has now released a fresh Request for Proposal (RfP) for the shortlisting and selection of bidders under the PLI Scheme, targeting a total manufacturing capacity of 10 GWh with a maximum budgetary outlay of ₹3,620 crore.

Mahendra Nath Pandey, Minister of Heavy Industries, emphasized the government's commitment to supporting India's manufacturing capabilities and exports in the automotive sector. He highlighted initiatives such as PLI-Auto, PLI-Advanced Chemistry Cell, and FAME-II schemes, demonstrating a focus on promoting environmentally friendly manufacturing in the automotive industry. Additionally, Pandey pointed out MHI's dedication to providing clean and green public transport through the Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) scheme, aiming to reduce dependence on fossil fuels and address vehicular emissions.

The PLI Auto and Auto Components scheme is another initiative by MHI, supporting the enhancement of India's manufacturing capabilities and exports in the automobile and automobile components sector. The primary objectives include deep localization, creating economies of scale, and building a robust supply chain in areas of Advanced Automotive Technology (AAT) products.

HBL