PLI Scheme Approved for ACC Battery Storage- Outlay of Rs.18,100 crore: The implementation of the Production Linked Incentive (PLI) Scheme has been approved for ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ by the cabinet on 12 May 2021. This aim to achieving manufacturing capacity of Fifty (50) Giga Watt Hour (GWh) of ACC and 5 GWh of “Niche” ACC with an outlay of Rs.18,100 crore. The Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved this proposal of Department of Heavy Industry. Now let’s check what the use of this scheme is and how we will benefit for us in this page.
Approval of PLI:
The Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved this proposal of Department of Heavy Industry for the implementation of the Production Linked Incentive (PLI) Scheme has been approved for ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’. After that, the Minister of Information and Broadcasting, Prakash Javadekar while informing about the decision stated that it will lead to the direct investment of around Rs. 45,000 crores in ACC Battery storage manufacturing projects. The minister also mentioned that the decision will give a big push to electric mobility, benefiting 3-wheeler, 4-wheeler and heavy vehicles. These are official statements made by officials. But to understand this announcement we have to know about what is PLI and ACC.
What is PLI?
Production Linked Incentive Scheme or PLI scheme is a scheme which aims to encourage local companies to set up or expand existing manufacturing units. In other words it aims to give companies incentives on incremental sales from products manufactured in domestic units. The scheme also invites foreign companies to set up units in India for the same purpose. It was launched in April 2020 in India.
What is Advanced Chemistry Cell (ACC)?
Advanced Chemistry Cell (ACC) is the new generation of advanced storage technologies that can store electric energy either as electrochemical or as chemical energy. It also converts it back to electric energy as and when required.
National Programme on Advanced Chemistry Cell (ACC) Battery Storage:
All the demand of the ACCs is currently being met through imports in India. The National Programme on Advanced Chemistry Cell (ACC) Battery Storage will reduce import dependence. It will also support the Atmanirbhar Bharat initiative. ACC battery Storage manufacturers will be selected through a transparent competitive bidding process. The manufacturing facility would have to be commissioned within a period of two years. The incentive will be disbursed thereafter over a period of five years. Alright! Now we all well-known about the key words but still there is one thing to know. Let’s check how we will benefit or our nation befit about this scheme.
Expected Benefits From The Scheme:
- Setup a cumulative 50 GWh of ACC manufacturing facilities in India under the Programme.
- Direct investment of around Rs.45,000 crore in ACC Battery storage manufacturing projects.
- Facilitate demand creation for battery storage in India.
- Facilitate Make-ln-lndia: Greater emphasis upon domestic value-capture and therefore reduction in import dependence.
- Net savings of Indian Rs. 2,00,000 crore to Rs.2,50,000 crore on account of oil import bill reduction during the period of this Programme due to EV adoption as ACCs manufactured under the Programme is expected to accelerate EV adoption.
- The manufacturing of ACCs will facilitate demand for EVs, which are proven to be significantly less polluting. As India pursues an ambitious renewable energy agenda, the ACC program will be a key contributing factor to reduce India’s Green House Gas (GHG) emissions which will be in line with India’s commitment to combat climate change.
- Import substitution of around Rs.20,000 crore every year.
- Impetus to Research & Development to achieve higher specific energy density and cycles in ACC.
- Promote newer and niche cell technologies.
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