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

The government of India recently approved the Production Linked Incentive (PLI) scheme for 'National Programme on Advanced Chemistry Cell (ACC). While this news might not gain the prime-time slot in news channels, it definitely grabs our attention as it will help our country grow in the right direction towards the EV revolution.

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.

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

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.

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

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.

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

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.

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

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.

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

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.

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Read more on: #auto news
Article Published On: Saturday, May 15, 2021, 16:50 [IST]
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