Govt issues PLI program for Advanced Chemical Cell (ACC) battery storage

The Government of India and the Department of Heavy Industries & Public Enterprises has issued a notification for the Production Linked Incentive (PLI) scheme for the ‘National Programme on Advance Chemistry Cell (ACC) battery storage’ for implementation of giga-scale ACC manufacturing facilities in India. The program is formulated with the approval of the Union Cabinet and its total incentive payout is rupees 181 billion for five years. Let us read in detail about Govt issues PLI program in India. 

Through this scheme, the Government of India intends to optimally incentivize potential investors, both domestic and overseas, to set- up Giga-scale ACC manufacturing facilities with an emphasis on maximum value additional quality output and achieving pre-committed capacity level within a pre-defined time period.

The scheme covers ACCs and integrated advanced batteries (Single Units) that suffice the minimum performance specifications such as

Some of the features of the scheme 

• It forecasts a cumulative ACC manufacturing capacity of fifty (50) GWh for ACCs and an additional cumulative capacity of (5) GWh for Niche ACC Technologies.
• 5 GWh of ACC cumulative capacity would be offered to “Niche” ACC technologies of higher performance with a minimum threshold capacity of 500 MWh.
• The beneficiary has to ensure achieving a domestic value addition of at least 25% and incur the mandatory investment (₹ 225 crore /GWh) within 2 Years and raise it to 60% domestic value addition within 5 Years.
• The beneficiary firm under the RFP would have to be commissioned within a period of 2 years and will payout over 5 years thereafter.
• The incentive claimed under this scheme will in no way debar/restrict for any incentive to be claimed under Faster Adoption and Manufacturing of (Hybrid&) Electric Vehicles in India (FAME-II ) or PLI scheme for Automobile and Auto components (of Department of Heavy Industry) where ACC may be used as a part of the end product.

Fund allocation

• The total incentive payout over the period of 5 years of the Scheme will be Rs. 18,100 crore.

The breakup of fund allocation year-wise, for the scheme’s duration (in Rs Crores) : 

The government said it will allocate ₹1.45 trillion for ten different sectors in the next 5 years including high-efficiency solar photovoltaic modules, advanced chemistry cells battery, and automobiles and auto components. For the overall three sectors, it has planned to allocate ₹796.42 billion for the next 5 years.

Government notification 

Also, read related article: Electric two-wheelers become cheaper in India-FAME II incentives

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