Tenders for advanced chemistry cells PLI scheme likely by December
ACC) production-linked incentive scheme with a 20-GWh capacity by December, an official in the know said. The move offers an opportunity for applicants who did not qualify in the initial round, or couldn’t apply to avail the incentives for creating battery storage capacity in India. The heavy industries ministry is likely to conclude consultations with the ministry of new and renewable energy by December.
The application process for new bids will begin thereafter. In the first round of awards, three firms had secured incentives. Ola Electric qualified for the 20GWh lithium-ion cell manufacturing, Reliance New Energy for 5GWh sodium-ion cell manufacturing and Rajesh Exports for 5GWh lithium-ion cells.
The companies committed a cumulative investment of ₹27,000 crore for the scheme. However, 20 GWh capacity, initially awarded to a Hyundai company, was subsequently deemed not bona fide, triggering a new round of bidding. In this upcoming round, the Centre is not likely to relax the criteria around localization of cell manufacturing (or domestic value addition), starting at 25% in the first year of manufacturing, and going up to 60% in the fifth year of production.
The minimum capacity for bidding is also likely to remain at 5GWh. The Centre expects greater participation than last time with over 15 applicants, a government official said seeking anonymity. The central government is also looking to sanction additional incentives for a new PLI scheme for niche chemistries such as solid state, zinc-based, and iron-air batteries.
A capacity of G5Wh will be approved for incentives next year. However, Suzuki Motor Co. and Tata Motors that committed ₹7,300 crore and ₹13,000 crore, respectively in cell manufacturing units in Gujarat,
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