Govt To Seek Industry Input On Re-Bidding Process Under PLI For Advanced Chemistry Cell Production

The government has announced the re-bidding of production linked incentives for the manufacturing of 20 GWh Advanced Chemistry Cells.

The ACC PLI scheme, worth Rs 18,100 crore, aims to boost local battery cell production in India.

The Ministry of Heavy Industries (MHI) will be holding a stakeholder consultation on 24 July 2023, to gather inputs and suggestions from industry representatives before initiating the re-bidding process for the remaining 20 GWh capacity.

According to an official statement, the ministry is fully committed to finalise the bidding documents and proceeding with the rebidding process at the earliest.

Through this auctioning process, prospective applicants will have the opportunity to submit their bids for setting up a domestic manufacturing facility for advanced chemistry cells. This will enable them to qualify for incentives under the ACC PLI scheme.

Advanced Chemistry Cells (ACCs) are the latest generation of storage technologies that can store electric energy in the form of electrochemical or chemical energy. They can then convert it back to electric energy whenever needed.

Energy storage technologies have wide-ranging applications in various sectors such as electric vehicles, grid stability, solar rooftop installations, and consumer electronics.

Given India's commitment to renewable energy and its goal of achieving net-zero emissions by 2070, energy storage is expected to play a crucial role in the country's overall energy ecosystem.

To enhance manufacturing capabilities in the field of energy storage, the government had approved the PLI scheme called the 'National Programme on ACC Battery Storage' in May 2021.

This scheme aims to achieve a manufacturing capacity of 50 Giga Watt Hour (GWh) of ACC, with a budgetary outlay of Rs 18,100 crore.

Under the initiative, the government's emphasis is on increasing domestic value addition and ensuring that the cost of battery manufacturing in India is globally competitive.