Rs 18,100 Crore Production Linked Incentive Scheme For ACC Batteries Approved

Under this new scheme, the government of India is aiming to achieve a 50-GWh manufacturing capacity of ACC and 5-GWh 'Niche' ACC with an overall expense of Rs 18,100 crore. This new scheme will not only help in acquiring huge investment and create job opportunities, but it will also improve our country's self-reliance.

At present, a majority of batteries in India are imported and the total import cost of these batteries accounts for almost Rs 20,000 crores. This move will accelerate the battery production sector in India and reduce our dependence on many other nations.

These ACC batteries are used in electronics, EVs, solar energy storage, advanced electricity grids, etc. We can expect these sectors to experience a wave of growth soon. The government has confirmed that the ACC battery storage manufacturers will be selected through a transparent competitive bidding process.

After the selection, the manufacturer must get the manufacturing facility commissioned within two years and the incentives will be disbursed throughout the next five years. The proposed incentives are designed to increase factors like specific energy density and cycles, and local value addition.

Initiatives like this will further accelerate the EV industry in India, which at present is in its budding stage. The move will also reduce the overall cost of manufacturing EVs in India as a big chunk of the manufacturing cost of an EV is linked to its battery pack.

Thoughts On Production Linked Incentive Scheme For ACC Batteries

The Production Linked Incentive scheme for ACC batteries will help the indian economy in creating jobs and huge business opportunities. It will also vastly improve self-reliance and reduce the cost of EVs in India, thereby accelerating the growth of the EV sector in India.