Govt selects 4 bidders for PLI scheme for ACC battery storage

  • Industry News
  • Mar 26,22
The government expects direct investment of around Rs 45,000 crore in Advanced Chemistry Cell (ACC) battery storage manufacturing projects.
Govt selects 4 bidders for PLI scheme for ACC battery storage

New Delhi

Ministry of Heavy Industries has made allotment for 50 GWh of battery capacity to 4 successful bidders for incentive under Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage. Four successful bidders included Reliance New Energy Solar Limited; Ola Electric Mobility Private Limited; Hyundai Global Motors Company Limited and Rajesh Exports Limited. These companies will receive incentives under India's Rs 18,100 crore programme to boost local battery cell production.

Commenting on the PLI scheme for ACC battery storage, Union Cabinet Minister for Heavy Industries, Dr Mahendra Nath Pandey, said, "The increase in demand for EVs, due to a favorable regulatory framework, has mainly attracted investment in this sector. Today big companies are investing in electric vehicle manufacturing in India and are interested to join us. We should give them more encouragement and keep trying to make India a manufacturing hub. Growth in EV segment of auto industry will definitely help us to achieve India's commitment to Panchtantra given by Hon'ble PM Modi ji in COP 26 and will provide huge employment opportunities to Indian youth.”

Ten companies submitted their bids under the Advanced Chemistry Cell (ACC) Battery Storage Programme in India for which Request for Proposal (RFP) was released by Ministry of Heavy Industries (MHI) on October 22, 2021. The scheme was open for receiving applications till January 14, 2022 and the Technical Bids were opened on January 15, 2022.

All the 10 bids were evaluated and 9 companies were found responsive and meeting the conditions of eligibility as per the requirements under the RFP. Accordingly, the Financial bids for the qualified bidders were opened on March 17, 2022 after announcement of the results of technical evaluation under transparent global tender process of RFP.

Final evaluation of the Selected Bidders was carried out as per Quality & Cost Based Selection (QCBS) mechanism and the bidders were ranked on the basis of their combined technical and financial score. The ACC capacities have been allocated in order of their rank, till a cumulative capacity of 50 GWh per year. Shortlisted Bidders that are not successful in securing allocation are placed under a waiting list.

The manufacturing facility would have to be set up within a period of two years. The incentive will be disbursed thereafter over a period of five years on sale of batteries manufactured in India.

The Government approved the Production Linked Incentive (PLI) Scheme 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ for achieving manufacturing capacity of Fifty (50) Giga Watt Hour (GWh) of ACC for enhancing India’s Manufacturing Capabilities with a budgetary outlay of Rs 18,100 crore. Under the said initiative the emphasis of the Government is to achieve greater domestic value addition, while at the same time ensure that the levelized cost of battery manufacturing in India is globally competitive.

The program is designed in such a manner that it is technology agnostic. The beneficiary firm shall be free to choose suitable advanced technology and the corresponding plant & machinery, raw material and other intermediate goods for setting up cell manufacturing facility to cater to any application.

The Program envisages an investment which will boost domestic manufacturing & also facilitate battery storage demand creation for both electric vehicles and stationary storage along with development of a complete domestic supply chain & Foreign Direct Investment in the country. ACC PLI scheme is expected to accelerate EV adoption and hence translate into net savings of Rs 200,000 crore to Rs 250,000 crore on account of oil import bill during the period of this Programme and increase the share of renewable energy at the national grid level.

This PLI scheme for ACC (Rs 18,100 crore) along with the already launched PLI Scheme for automotive sector (Rs 25,938 crore) and Faster Adaption of Manufacturing of Electric Vehicles or FAME (Rs 10,000 crore) will enable India to leapfrog from traditional fossil fuel-based automobile transportation system to environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles (EV) based system.

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