Govt approves Rs 18,100 crore PLI scheme for ACC batteries
The government on Wednesday approved the Production Linked Incentive (PLI) scheme for manufacturing advanced chemistry cell (ACC) battery at an estimated outlay of Rs 18,100 crore.
With the objective to promote the Make in India initiative, the National Programme on Advanced Chemistry Cell (ACC) Battery Storage is expected to attract foreign and domestic investment of Rs 45,000 crore, Information and Broadcasting Minister Prakash Javadekar told reporters after the Cabinet meeting.
The proposal aims to achieve manufacturing of 50 gigawatts of battery storage, he said, adding, these incentives will be available to those companies having higher production and sales capability.
The policy aims to make manufacturers globally competitive, boost exports, achieve economies of scale and produce cutting edge products.
ACCs are the new generation of advanced storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required, an official statement said.
Major battery consuming sectors like consumer electronics, electric vehicles, advanced electricity grids, solar rooftop etc. are expected to achieve robust growth in the coming years, it said, adding it is likely that the dominant battery technologies will control some of the world's largest growth sectors.
This is a win-win formula for climate change, green growth, Indian philosophy of Make in India and Atmanirbhar Bharat, Javadekar said, adding it will bring in foreign as well as domestic investment and create more job opportunities.
The manufacturing of ACCs is expected to facilitate demand for electric vehicles (EVs), which are proven to be significantly less polluting.
"As India pursues an ambitious renewable energy agenda, the ACC programme will be a key contributing factor to reduce India's Green House Gas (GHG) emissions which will be in line with India's commitment to combat climate change," it said.
While several companies have already started investing in battery packs, though the capacities of these facilities are too small when compared to global averages, but there still is a negligible investment in manufacturing, along with value addition, of ACCs in India, it said.