The Department of Heavy Industry (DHI), Government of India, has issued a notification on June 9, 2021, for the Performance Linked Incentive (PLI) program ‘National Program on Advanced Chemistry Cell (ACC) battery storage’ to implement ACC (Advanced Chemistry Cells) manufacturing facilities for electric vehicles[1]. With an outlay of Rs. 18,100 crore, Advanced Chemistry Cells are believed to be the new generation of advanced storage technologies which store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required.
The Government of India aims to use this Scheme to optimally incentivize potential investors, both domestic and international, to set up Giga-scale ACC manufacturing facilities with a focus on maximum value addition and quality output, as well as achieving pre-committed capacity levels within a pre-determined time frame.
National Program on Advanced Chemistry Cell (ACC) battery storage- Key Highlights
- Setup a cumulative ACC manufacturing capacity of 50 GWh for ACCs and an additional cumulative capacity of 5 GWh for Niche ACC Technologies.
- Each selected ACC battery storage manufacturer (beneficiary) has to achieve a domestic value addition of at least 25 percent and incur the mandatory investment of INR 225 crore /GWh at Mother unit level within 2 years.
- Within five years, the ACC battery manufacturer must achieve a minimum of 60% domestic value addition at the Project level.
- The beneficiary firm’s proposed manufacturing plant under the RFP would have to be operational within two years. Following that, the subsidy will be distributed over a five-year period.
BENEFITS OF THE PLI SCHEME
With the approval of this new PLI Scheme, one can expect a robust growth in the sectors as it would facilitate demand creation for battery storage in India and further increase the demand for Electric Vehicles thereby reducing Greenhouse Gas emissions.
In furtherance to this, net saving of Rs. 2,00,000- 2,50,000 crore on account of oil import bill reduction is also expected as the government foresees an increase in the adoption of EV.
CONCLUSION
The NPACC PLI Scheme will be beneficial for India’s self-reliance in the energy storage sector thereby strengthening the Make in India initiative and attracting huge investments in the EV industry. This new scheme will give a push to local manufacturing facilities and further generate employment.
[1] https://www.pib.gov.in/PressReleasePage.aspx?PRID=1717938
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