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Production Linked Incentive scheme “National Programme on Advanced Chemistry Cell Battery Storage”

Published: 17th May, 2021

The Cabinet has approved the implementation of the 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ that was proposed by the Department of Heavy Industry.

Context

The Cabinet has approved the implementation of the 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ that was proposed by the Department of Heavy Industry.

About

About the Production linked Incentive Scheme

  • Production Linked Incentive Scheme (PLI) is a production linked incentive to boost domestic manufacturing and to attract large investments in mobile phone manufacturing and specified electronic components.
  • Support: The Scheme would boost the electronics manufacturing landscape and establish India at the global level in electronics sector. 
  • Incentive: The scheme will provide an incentive of 4% to 6% on incremental sales (over base year) of goods manufactured in India to eligible companies, for a period of five (5) years.
  • Time period: Support shall be provided for a period of five (5) years subsequent to the base year. 
  • Implementation: The Scheme will be implemented by a Nodal Agency which shall act as Project Management Agency (PMA).
  • The scheme has been initiated on the efforts of Ministry of Electronics and Information Technology (MeitY).
  • Second Round: After the success of the First Round the proposal for accepting applications underSecond Round of the PLI Scheme has been approved by the Competent Authority.
    • The target segment for the purpose of this round shall be Specified Electronic Components.
    • incentives of 5% to 3%shall be extended on incremental sales for a period of four (4) years.

About the 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage’

  • Reduce import: The National Programme on Advanced Chemistry Cell (ACC) Battery Storage will reduce the import dependence.
    • All the demand of the ACCs is currently met through imports in India.
  • Bidding process: ACC battery Storage manufacturers will be selected by a transparent competitive bidding process.

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.
  • Manufacturing facility: It would have to be commissioned within a period of two years.
  • Time period: The incentive will be disbursed over a period of five years.
  • Incentive amount: It will increase with increased specific energy density & cycles and increased local value addition.
  • Capacity Target: Each ACC manufacturing facility should be of minimum five (5) GWh capacity and should ensure a minimum 60% domestic value addition at the Project level within five years.
    • The beneficiary firms have to achieve a domestic value addition of atleast 25% and incur the mandatory investment Rs.225 crore /GWh within 2 Years and raise it to 60% domestic value addition within 5 Years, either at Mother Unit, in-case of an Integrated Unit, or at the Project Level, in-case of "Hub & Spoke" structure.
  • Support: It will also support the Atmanirbhar Bharat initiative.
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