The Cabinet, chaired by Prime Minister Narendra Modi, has approved
the proposal of Department of Heavy Industry for implementation of 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
and 5 GWh of "Niche" ACC with an outlay of
Rs.18,100 crore on 12 May 2021.
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. The consumer
electronics, electric vehicles, advanced electricity grids, solar rooftop etc.
which are major battery consuming sectors are expected to achieve robust growth
in the coming years. It is expected that the dominant battery technologies will
control some of the world's largest growth sectors.
While several companies have already started investing in battery
packs, though the capacities of these facilities are too small when compared to
global averages, but there still is negligible investment in manufacturing,
along with value addition, of ACCs in India. All the demand of the ACCs is
currently being met through imports in India. The National Programme
on Advanced Chemistry Cell (ACC) Battery Storage will reduce import dependence.
It will also support the Atmanirbhar Bharat
initiative. ACC battery Storage manufacturers will be selected through a
transparent competitive bidding process. The manufacturing facility would have
to be commissioned within a period of two years. The incentive will be
disbursed thereafter over a period of five years.
4. The incentive amount will increase with increased specific
energy density & cycles and increased local value addition. Each selected
ACC battery Storage manufacturer would have to commit to set-up an ACC
manufacturing facility of minimum five (5) GWh
capacity and ensure a minimum 60% domestic value addition at the Project level
within five years. Furthermore, the beneficiary firms have to achieve a
domestic value addition of atleast 25% and incur the
mandatory investment Rs.225 crore /GWh within 2 Years
(at the Mother Unit Level) and raise it to 60% domestic value addition within 5
Years, either at Mother Unit, in-case of an Integrated Unit, or at the Project
Level, in-case of "Hub & Spoke" structure.
The outcomes/ benefits expected from the scheme are as follows:
i.
Setup a cumulative 50 GWh of ACC manufacturing facilities in India under the Programme.
ii.
Direct investment of around
Rs.45,000 crore in ACC Battery storage manufacturing
projects.
iii.
Facilitate demand creation for
battery storage in India.
iv.
Facilitate Make-ln-lndia: Greater emphasis upon domestic value-capture and
therefore reduction in import dependence.
v.
Net savings of Indian Rs. 2,00,000 crore to Rs.2,50,000
crore on account of oil import bill reduction during the period of this Programme due to EV adoption as ACCs manufactured under the
Programme is expected to accelerate EV adoption.
vi.
The manufacturing of ACCs will
facilitate demand for EVs, which are proven to be significantly less polluting.
As India pursues an ambitious renewable energy agenda, the ACC program will be
a key contributing factor to reduce India's Green House Gas (GHG) emissions
which will be in line with India's commitment to combat climate change.
vii. Import substitution of around Rs.20,000
crore every year.
viii.Impetus
to Research & Development to achieve higher specific energy density and
cycles in ACC.
ix.
Promote newer and niche cell
technologies.