PLI Scheme for battery storage
Union Cabinet approved PLI Scheme for battery storage to reduce EVs cost
The Union Cabinet has approved the proposal of the Department of Heavy Industry to promote battery storage which helps in the reduction of the cost of electric vehicles. As the cost of electric vehicles reduces there will be an increase in the adoption of electric vehicles in India. Let us know more about the PLI Scheme for battery storage.
The Government aiming local manufacturing of batteries has approved the proposal for the PIL scheme on Advanced Chemistry Cell (ACC) Battery Storage for achieving manufacturing capacity of 50 GWh of ACC and 5 GWh of “Niche” ACC with an outlay of Rs 18,100 crore. This means as per the scheme every manufacturer needs to set up an ACC production facility of a minimum 5 GWh capacity. A minimum of 60% domestic value within 5 years is needed.
The PIL Scheme will help to reduce the costs on the oil import bill to net savings of Rs 2-2.5 lakh crore said the policy note issued by the cabinet. The Union Minister of Heavy Industries & Public Enterprises, Prakash Javadekar said “The Union Cabinet has taken a big decision to make the dream of Make in India. Everyone knows how much battery storage is important. Today, many things are stuck due to a lack of battery storage. India imports Rs 20,000 crore of battery equipment from outside,”
“In such a situation, the government has now announced Production Linked Incentive (PLI), due to which the import will be reduced. ACC battery storage will be manufactured in India. To promote the ‘Make in India’ initiative, National Programme on Advanced Chemistry Cell (ACC) Battery Storage is expected to attract investment of Rs 45,000 crore. This will give a boost to electrical vehicles, electrical mobility in the country. Long-lasting batteries and fast charging batteries are the need of the hour.”
The outcomes/ benefits expected from the scheme are as follows
- Setup a cumulative 50 GWh of ACC manufacturing facilities in India under the Programme.
- Direct investment of around Rs.45,000 crore in ACC Battery storage manufacturing projects.
- Facilitate demand creation for battery storage in India.
- Facilitate Make-ln-India: Greater emphasis upon domestic value-capture and therefore reduction in import dependence.
- 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.
- 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.
- Import substitution of around Rs.20,000 crore every year.
- Impetus to Research & Development to achieve higher specific energy density and cycles in ACC.
- Promote newer and niche cell technologies.
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