Govt. approves Incentive Scheme for promoting battery storage manufacture; Use of domestic bauxite as raw material to grow

On Wednesday, May 12, the Union Cabinet approved the implementation of the Production Linked Incentive (PLI) Scheme 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ for promoting battery storage manufacture at an estimated outlay of INR 18,000 crore.

The proposal aims to achieve a manufacturing capacity of 50 Gigawatt Hour of ACC and 5 GWh of niche ACC and expects to attract an investment of INR 45,0000 crore, said Information and Broadcasting minister Prakhash Javadekar after the Cabinet meeting.

He also said the implementation of this scheme would encourage the growth of consumer electronics, electric vehicles, advanced electricity grids, solar rooftops, etc., which are major battery-consuming sectors. It is also expected that the dominant battery technologies will control some of the world's largest growth sectors, promoting green growth and usage of local products like bauxite and copper to a large extent.

Several companies have already started investing in battery packs. ACC battery storage manufacturers will be selected through a transparent bidding process. Manufacturing facilities are estimated to start operations within a period of two years, and incentives to be disbursed thereafter over a period of five years.

Besides, The 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage will expectedly reduce import dependence, while supporting the Atmanirbhar Bharat initiative.