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Re-bidding under PLI for Advanced chemistry cell manufacturing

  • Category
    Economy
  • Published
    28th Jul, 2023

Context

According to a latest update, the Central Government has announced the re-bidding of Production linked incentives (PLI) for 20 GWh Advanced Chemistry Cell manufacturing in consultation with the industrial representatives.

What are Advanced Chemistry Cells (ACCs)?

  • This is a new generation of advanced storage technologies.
  • It can store electric energy either as electrochemical or as chemical energy and converts back to electric energy when required.

About the update:

  • The Ministry of Heavy Industries (MHI) will facilitate a stakeholder consultation with industry representatives for their inputs and suggestions before the start of the re-bidding process of remaining 20 GWh capacity of Advanced Chemistry Cell manufacturing.
  • The auctioning will allow, the prospective applicants to submit their bids to set up domestic manufacturing facility for advanced chemistry cell, eventually qualifying for incentives under ACC PLI scheme.

What is the PLI Scheme?

  • Aim: To scale up domestic manufacturing capability, accompanied by higher import substitution and employment generation.
  • Objectives:
    • Reduce India’s dependence on China and other foreign countries.
    • Supports the labour-intensive sectors to increase the employment ratio in India.
    • To reduce down the import bills and boost up domestic production.
  • Targeted Sector: Initially the scheme targeted:
    • Mobile and allied Component Manufacturing
    • Electrical Component Manufacturing and
    • Medical Devices
  • At present, government has announced PLI schemes for 14 sectorsincluding automobile and auto components, electronics and IT hardware, telecom, pharmaceuticals, solar modules, metals and mining, textiles and apparel, white goods, drones, and advanced chemistry cell batteries.

Incentives under the Scheme:

  • Budgetary Allocation: The Union Budget 2023-24 has put aside US$ 988 million (Rs. 8,083 crores) for the production-linked incentive schemes (PLI), where the bulk of the money is going for large-scale electronics manufacturing, which includes mobile devices, pharma, auto and auto components, and food processing.
  • The incentives on the basis of incremental salesrange from as 1% for the electronics and technology products to 20% for the manufacturing of drugs and certain drug intermediaries.
  • For advanced chemistry cell batteries, textile products and the drone industry, the incentive to be given will be calculated on the basis of sales, performance and local value addition doneover the period of five years.

National Programme on Advanced Chemistry Cell Battery Storage:

AIM: To set up 50 gigawatt hour (GWh) manufacturing capacity for ACC batteries by attracting investments totaling Rs. 45,000 crore.

  • Each selected ACC battery Storage manufacturer needs to set-up an ACC manufacturing facility of minimum 5 GWh capacity.
  • Achieve a domestic value addition of at least 25% and incur the mandatory investment Rs.225 crore /GWh within 2 Years.
  • Ensure a minimum 60% domestic value addition at the Project level within five years.

Verifying, please be patient.

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