In a move to bolster domestic manufacturing capabilities in the rapidly evolving field of advanced chemistry cells (ACCs), the Ministry of Heavy Industries (MHI) announced the re-bidding of production linked incentives (PLI) on Wednesday, January 24, 2024.
The PLI scheme, specifically tailored for 10 GWh ACC manufacturing, opens doors for prospective applicants to participate in the bidding process. This presents an opportunity for companies to establish a domestic manufacturing facility, thereby qualifying for incentives under the PLI ACC scheme.
The bidding process is set to unfold online, ensuring transparency through a two-stage mechanism under the quality and cost-based selection (QCBS) on the CPP portal. Tender documents for interested parties have been made available from January 24.
To address potential queries and provide additional clarity, a pre-bid conference is scheduled for February 12. The bid due date has been set for April 22, 2024, and bidders will have the opportunity to submit their proposals until April 23, 2024.
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.
These have major applications in electric vehicles, maintaining grid stability, solar rooftops, consumer electronics, etc. With India's commitment towards renewable energy and achieving net zero by 2070, energy storage is expected to play a crucial role in the overall energy ecosystem.
In May 2021, the Cabinet approved the technology-agnostic PLI scheme on the 'National Programme on Advanced Chemistry Cell Battery Storage’ for achieving a manufacturing capacity of 50 gigawatt hours (GWh) of ACC with an outlay of ₹18,100 crore.
The first round of the ACC PLI bidding was concluded in March 2022, and three companies were allocated a total capacity of 30 gigawatt hours (GWh), and the programme agreement with selected companies was signed in July 2022.
Further, the Ministry of Heavy Industries and the Government of India have released a request for the proposal for shortlisting and selection of bidders under the PLI scheme for setting up of battery manufacturing units with a total manufacturing capacity of 10 giga watt hour (GWh) with a maximum budgetary outlay of ₹3,620 crore.
