PLI scheme for Advanced Chemistry Cell

Announcing Production Linked Incentive (PLI) for manufacturing advanced chemistry cell batteries to those firms that have been allocated the production capacity under the national programme on ACC battery storage through a transparent mechanism, the Department of Heavy Industry is said to be taking the right steps in the right direction. Encouraging existing battery manufacturers like Amara Raja to tweak their policy by setting up a tech centre at Tirupati and announce that it will make lithium-ion batteries, the PLI scheme, though outlining some stringent criteria, including the commitment to set up a minimum of five GWh (Gigawatt hours) of ACCs manufacturing facility, was appreciated at an ‘Electric Vehicle’ conference organised by Emkay Global Financial Services in May 2021. It witnessed the participation of eminent speakers and stakeholders from the entire EV value chain. One of the key takeaway at the conference was the penetration of EVs on the back of stringent emission norms, incentive schemes, well-defined long-term policies, standardization of charging infrastructure and a structured approach to reduce dependency on imports. With more and more states taking to formulate an EV policy (Haryana has just announced that it will formulate an EV policy), the adoption of EVs in newer segments, albeit at the urban level, is expected to go up. Supporting it will be rising local manufacture of key components and modules.