Reliance Industries Limited will be eligible for the maximum budgetary outlay off INR 3,620 Cr under the PLI scheme for ACC
ACCs are used in EVs and can store electric energy either as electrochemical or as chemical energy
The first round of bidding saw three companies – Reliance New Energy, Ola Electric Mobility and Rajesh Exports– win grants for a total capacity of 30 GWh
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The Ministry of Heavy Industries (MHI) has selected Reliance Industries Limited (RIL) as the successful bidder for the global tender for production linked incentive (PLI) scheme for 10 GWh advanced chemistry cell (ACC) manufacturing.
With this, the company will be eligible for the maximum budgetary outlay off INR 3,620 Cr. For the uninitiated, ACCs are used in electric vehicles (EVs). They can store electric energy either as electrochemical or as chemical energy,
“This initiative is another step towards enhancing domestic manufacturing capacity, reducing import dependence, and positioning India as a global leader in ACC battery manufacturing,” the ministry said in a statement.
To win the bid, the company was competing against six other bidders – ACME Cleantech Solutions Pvt Ltd, Amara Raja Advanced Cell Technologies Pvt Ltd, Anvi Power Industries Pvt Ltd, JSW Neo Energy Ltd, Lucas TVS Ltd, and Waaree Energies.
While RIL won the bid, five other entities, ACME, Amara Raja, Waaree Energies, JSW Neo Energy and Lucas have been put in the waitlist in the aforementioned order.
The union cabinet approved the PLI scheme for manufacturing ACC batteries in May 2021 to boost India’s electric mobility and battery storage capabilities. The scheme has an outlay of INR 18,100 Cr to achieve manufacturing capacity of 50 GWh of ACC and 5 GWh of “niche” ACC.
It is envisaged to enhance India’s manufacturing capabilities of ACC by setting up giga scale ACC and battery manufacturing facilities in India with emphasis on maximum domestic value addition.
Its first round of bidding saw three companies – Reliance New Energy Limited, Ola Electric Mobility Private Limited and Rajesh Exports Limited – win grants for a total capacity of 30 GWh, that is 10 GWh apiece. The round was concluded in March 2022.
Bid winner Ola Electric has already completed the Phase 1(a) of setting up its gigafactory, “Futurefactory”, in Tamil Nadu’s Krishnagiri. The company claims that the initial production capacity of the gigafactory is expandable to 20 GWh.
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