Ten companies including Mahindra & Mahindra (M&M), Ola Electric, Amara Raja Batteries and Exide Industries have placed bids for the government’s Advanced Cell Chemistry (ACC) production-linked incentive (PLI) scheme.
The scheme which was approved in May 2021 by the Ministry of Heavy Industries aims to achieve a local cell manufacturing capacity of 50GWh of ACC in India, and saw the application window remain open between October 22, 2021 and midnight of January 14, 2022.
The ministry has received an overwhelming response from the industry with the ten bids amounting to a cumulative manufacturing capacity of 130GWh, two-and-a-half times more than the stipulated capacity.
The incentive structure will call for the winning participants to invest and install a local cell manufacturing capacity within two years, to be eligible for disbursement of the incentive from the government over a five-year period thereafter.
The beneficiary firm, however, will be free to choose the suitable advanced cell technology, corresponding plant and machinery, raw material and other intermediate goods required for setting up the facility.
Given the boom in offtake of electric vehicles in India across vehicle segments, the ACC PLI scheme also aims to encourage the industry to promote fresh investments in indigenous supply chain, ensuring deep localisation for battery manufacturing in the country. It also envisages enhancing demand creation for both EVs as well as stationary storage, and attracting foreign direct investment into the country. Among the benefits being targeted are slashing India’s crude-oil import bill.