Get Instant Loan up to ₹10 Lakh!
In the bag: Reliance inks pact for up to ₹3,620 cr worth of battery PLI
- Reliance New Energy Battery awarded a 10 GWh advanced chemical cells manufacturing capacity
A unit of Reliance Industries Ltd has signed an agreement with the ministry of heavy industries for production-linked incentives of up to ₹3,620 crore for manufacturing advanced chemical cells.
The agreement awarded Reliance New Energy Battery Ltd a 10 GWh (gigawatt-hours) of advanced chemical cells (ACC) capacity and made it eligible to receive incentives under the ₹18,100-crore PLI scheme, the ministry said in a statement on Tuesday.
Also Read: MHI approves subsidies for 9,800 e-buses in Bengaluru, Hyderabad
Advanced chemistry cells are new-generation technologies that can store electric energy as electrochemical or chemical energy and convert it back to electric energy when required. The PLI scheme is expected to strengthen the ecosystem for electric mobility and battery storage in the country.
The Cabinet in May 2021 announced the PLI scheme with a total outlay of ₹18,100 crore to achieve a total manufacturing capacity of 50 GWh within the country. On 4 September 2024, the heavy industries ministry had announced that Reliance Industries had emerged as the winner of the tender among seven other bidders to set up 10 GWh of battery manufacturing capacity.
With the 10 GWh award, Reliance Industries will receive ₹3,620 crore worth of benefits to set up battery manufacturing capacity.
Also Read: US fossil fuel push may undo climate progress. But it will have to pause, says Teri chief
“With this signing, a cumulative capacity of 40 GWh has been awarded to four selected beneficiary firms out of 50 GWh capacity,” the ministry’s statement said. “In the first round of bidding conducted in March 2022, three beneficiary firms were allocated a total capacity of 30 GWh, and the Programme Agreements for that round were signed in July 2022.”
In 2022, the government awarded 5 GWh manufacturing capacity to Reliance Industries, 20 GWh capacity to Ola Electric Ltd, and another 5 GWh capacity to Rajesh Exports.
The 2022 auction under the battery PLI scheme was supposed to award 50 GWh capacity to four winners. However, one bidder that was poised to get incentives for 20 GWh of battery making capacity was later found to be impersonating Korean automotive company Hyundai Motors. Its bid was cancelled, and its designated battery capacity was unawarded. Half of this unawarded capacity came up for rebidding in the latest round, where Reliance Industries secured the 10 GWh capacity.
Also Read: Auto and chemical sectors lead in quality certifications, CII manufacturing sector study says
Apart from the PLI beneficiaries, more than 10 companies have already started setting up over 100 GWh additional capacity, the ministry said.
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
MoreLess
First Published:18 Feb 2025, 09:13 PM IST
- Top Gainers
- Top Losers
- 52 Week High