Reliance Industries' subsidiary Reliance New Energy, Ola Electric and Indian jewellery maker Rajesh Exports on Friday signed final agreements to build battery cells under the Indian government’s Rs 18,000 crore incentive program.
Under a production-linked incentive (PLI) scheme, the government had selected these companies to build a total of 50 gigawatt hours (Gwh) of battery storage capacity.
As part of the PLI scheme, the companies have signed the 'Agreement for Advanced Chemistry Cell (ACC) Battery Storage'.
A press release from the Ministry of Heavy Industries said that private players are expected to create battery manufacturing capacity to the tune of 95 Gwh in addition to those allocated by the ministry under the PLI program.
The PLI scheme 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage' was approved by the Union Cabinet in May 2021 with an outlay of Rs 18,100 crore for the manufacturing of 50 Gwh of ACC and 5 Gwh of Niche ACC.
The Ministry of Heavy Industries is overseeing its implementation. It is estimated that the PLI scheme for ACC battery storage will result in direct investments of around Rs 45,000 crore in manufacturing projects.
"This embarks a new chapter in India’s manufacturing industry as we set the vision for battery manufacturing and compete globally with other nations in this sunrise sector. This will be favorable to EV ecosystem and energy storage market as it will support the demand for EVs and renewable and attract investment in this sector," Union Cabinet Minister for Heavy Industries, Mahendra Nath Pandey, said in a press release.
Under the PLI scheme of ACC battery storage, a total of 10 bids were submitted from companies with manufacturing capacities of 128 Gwh. ACC PLI program requires the manufacturing facility to be operational within two years. Following the sale of batteries manufactured in India, the incentive will be disbursed over a five-year period.
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