Cabinet nod: Rs 18k-cr PLI push for ACC battery storage


The incentive amount will rise with increased specific energy density and cycles and increased local value addition.

The Cabinet on Wednesday approved a production-linked incentive (PLI) scheme for advanced chemistry cell (ACC) battery storage, which would cost the exchequer Rs 18,100 crore over five years. Major battery-consuming sectors, including consumer electronics, electric vehicles, advanced electricity grids and solar rooftop, are expected to benefit from the move.

The PLI scheme will draw direct investments of around Rs 45,000 crore over five years and result in an annual import substitution of about Rs 20,000 crore, information and broadcasting minister Prakash Javadekar said after the Cabinet meeting.

See also  Coronavirus in India Live News: Himachal Pradesh govt extends Corona curfew till May 26; 15-day complete lockdown in West Bengal from Sunday

The government also expects the scheme to potentially reduce the country’s oil import bill by Rs 2,00,000-2,50,000 crore (over five years), as increased ACC storage manufacturing will promote greater adoption of electric vehicles.

The latest programme is part of the 13 PLI schemes, proposed by the government in the wake of the Covid-19 pandemic last year, to lure mainly large corporations to expand manufacturing, bolster supply chains and boost exports.

The total incentives under the PLI schemes, covering sectors including telecom, electronics, auto part, pharma, chemical cells and textiles, stood at Rs 1.97 lakh crore over a five-year period.

The schemes, put together, are expected to catalyse incremental manufacturing of as much as $520 billion over five years.

Under the latest scheme, the government aims to create domestic capacity to manufacture as much as 50 giga-watt hour (GWh) of ACC and 5 GWh of “niche” ACC from almost negligible capacity now.

See also  What To look For in a Private Equity Fund Manager

Eligible companies will be selected through a competitive bidding process, and they have to set up the manufacturing facility within two years. The incentive will be disbursed thereafter over five years, according to an official statement.

The incentive amount will rise with increased specific energy density and cycles and increased local value addition. Each selected manufacturer would have to commit to set up an ACC manufacturing facility of a minimum five GWh capacity and ensure a minimum 60% domestic value addition at the project level within five years.

See also  Educate Yourself With the First Time Home Buyer Factors

Moreover, the beneficiaries have to achieve a domestic value addition of at least 25% and incur the mandatory investment Rs 225 crore per GWh within two years (at the mother unit level). They have to raise the value addition to 60% within five years, either at the mother unit level (in-case of an integrated unit), or at the project Level (if it’s the so-called “hub & spoke” structure).

The scheme will also provide a fresh impetus to research & development in this space and help the government’s Atmanirbhar initiative, Javadekar said.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.


Source link


A brief Introduction to Furniture Rentals in South Korea

In some countries, renting furniture for your apartment isn’t as common as it is in South Korea. Furniture rental packages are perfect for those...

What is Solana and What are Its Pros and Cons?

Solana is a blockchain-based platform that has been gaining popularity in the world of cryptocurrency due to its unique features and benefits. SOL is...

Mind Mapping Software Is A Game Changer

Mind mapping is a powerful and engaging way to organize your thoughts. It's been proven effective as a learning tool, and has recently made...

Tips To Get Your Clients To Pay On Time

When you are a business owner, you are bound to get stuck with clients who do not pay on time. The worst part is...

5 Reasons Why Bybit is an Outstanding Crypto Exchange

One of the most well-known crypto exchanges in the market is Bybit. This cryptocurrency exchange is known all around the world, thanks...