The government on Wednesday approved the Production Linked Incentive (PLI) scheme for manufacturing advanced chemistry cell (ACC) battery at an estimated outlay of Rs 18,100 crore.
With the objective to promote the Make in India initiative, the National Program on Advanced Chemistry Cell (ACC) Battery Storage is expected to attract foreign and domestic investment of Rs 45,000 crore.
ACCs are the new generation of advanced storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required
The proposal aims to achieve manufacturing of 50 gigawatts of battery storage and these incentives will be available to those companies having higher production and sales capability.
The manufacturing of ACCs is expected to facilitate demand for electric vehicles (EVs), which are proven to be significantly less polluting.
While several companies have already started investing in battery packs, though the capacities of these facilities are too small when compared to global averages, but there still is a negligible investment in manufacturing, along with value addition, of ACCs in India. Government hopes to boost this by these incentives.
It is estimated that it could lead to net savings of Rs 2-2.5 lakh crore on account of oil import bill reduction during the period of this program due to electric vehicle adoption since domestic manufacturing will help in bringing down the cost of electric vehicles.
This is an Agency Feed; edited by Clean-Future Team