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Business News/ News / India/  Fresh bids for advanced chemistry cells
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Fresh bids for advanced chemistry cells

The Indian Ministry of Heavy Industries will issue a fresh tender for the production-linked incentive scheme, inviting bids for the ?18,000-crore Advanced Chemistry Cells (ACC) project. The scheme aims to incentivize the production of 20GWh battery storage capacity. Three companies, Ola Electric, Reliance New Energy, and Rajesh Exports, qualified for incentives in the initial round. Ola Electric and Reliance New Energy have presented production roadmaps, while Rajesh Exports is likely to be disqualified for failing to submit plans. The government will also provide additional incentives for a 10GWh capacity project using new battery technologies.

The scheme aims to incentivize production of 20GWh battery storage capacity. (AFP)Premium
The scheme aims to incentivize production of 20GWh battery storage capacity. (AFP)

Goa: The ministry of heavy industries will be issuing a fresh tender for applications under the production-linked incentive scheme inviting bids for the 18,000-crore Advanced Chemistry Cells, or ACC project. The scheme aims to incentivize production of 20GWh battery storage capacity, it said on Wednesday.

During the initial round of awards under the PLI scheme, three companies qualified for incentives: Ola Electric, Reliance New Energy, and Rajesh Exports. However, Ola Electric (for 20GWh lithium-ion cell) and Reliance New Energy (for 5GWh sodium-ion cell manufacturing) have presented the roadmap for actual production to the government.

Bangalore-based precious jewellery firm Rajesh Exports, which had qualified for incentives for a 5GWh lithium-ion cell production capacity is yet to submit plans and is likely to be disqualified.

The three firms committed a cumulative investment of 27,000 crore under the PLI scheme. The government will sanction additional incentives for a 10GWh capacity project using new battery technologies such as solid state, zinc-based, and iron-air batteries. The process for this will start in September, said heavy industries secretary Kamran Rizvi on the sidelines of the G20 energy transition working group meeting in Goa on Wednesday.

G20 sherpa in India’s presidency year, Amitabh Kant said battery storage capacity will be key to India’s energy transition journey.

The ministry will be holding consultations with industry stakeholder on 24 July, ahead of the re-bidding process for the ACC PLI scheme. Ola Electric will deploy the first phase of its lithium-ion cell manufacturing facility at Krishnagiri in Tamil Nadu with a capacity of 5GWh by the end of 2024, Rizvi added.

Ola is striving to have 1GWh capacity on stream at the unit by the end of this year, people in the know told Mint.

Besides the 50GWh capacity which will be created as a part of the ACC PLI scheme, the private sector will set up a battery manufacturing capacity of 100GWh, Rizvi added.

This round of the ACC PLI scheme is set to woo the interest of large global lithium-ion battery manufacturers such as Panasonic, Samsung, and LG Chem, which had not participated in the first round. Some of the players have shown interest in applying for the scheme once bids are invited, people in the know said, seeking anonymity. Besides, domestic battery firms such as Amara Raja and Exide that were wait-listed earlier, are likely to submit fresh bids.

India has high dependence on foreign markets for lithium-ion cell importing for its electric vehicles, considering that there are no existing facilities in the country. It imports cells primarily from China, as well as South Korea, Germany and Japan. According to the ministry, 10 bids were received from firms with manufacturing capacity of 128 GWh under the ACC PLI scheme earlier.

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ABOUT THE AUTHOR
Alisha Sachdev
Alisha Sachdev reports on the auto and mobility sector, with a special focus on emerging clean mobility technologies.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Published: 19 Jul 2023, 11:37 PM IST
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