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Cabinet Approves PIL Scheme ‘National Programme on ACC Battery Storage’

Cabinet Approves PIL Scheme ‘National Programme on ACC Battery Storage’


The Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the proposal of the Production Linked Incentive (PLI) Scheme on the National Programme on Advanced Chemistry Cell (ACC) Battery Storage.

The proposal of the Department of Heavy Industry for implementation is approved for achieving a manufacturing capacity of 50 GWh of ACC and “Niche” ACC with an outlay of Rs.18,100 crore.

ACC can store electric energy as electrochemical or as chemical energy and convert it back to electric energy. Advanced Chemical Cell is considered the new generation of advanced storage technologies.

Major battery consuming sectors like consumer electronics, electric vehicles, advanced electricity grids, solar rooftop and others are expected to achieve robust growth in upcoming years. Dominant battery technologies are expected to control some largest growth sectors of the world.

All the demand of ACC’s in India is being met through imports. The National Programme on ACC Battery Storage will help to reduce dependence on imports and will also support the Atmanirbhar Bharat initiative.

Several companies are already investing in battery packs, though the capacities of these facilities are too small in comparison to global averages.

The selection of ACC battery storage manufacturers through a competitive bidding process. Media reports state that the manufacturing facility will have to be commissioned within a time of two years. The disbursement of the incentive will happen over five years. With increased specific energy density & cycles and increased local value addition, the incentive will increase accordingly.

ACC battery Storage manufacturer is required to commit to set up a manufacturing facility of at least 5GWh capacity along with ensuring 60 per cent domestic value addition at the Project Level within five years.

The beneficiary firms will have to achieve a domestic value addition of a minimum of 25 per cent and incur the mandatory investment of Rs.225 crore /GWh within two years.

They are further required to raise it to 60 per cent domestic value addition within five years.
The major benefits of the scheme include facilitating demand creation in India, direct investment of around Rs 45,000 crore in ACC battery storage manufacturing projects, facilitating Make-In-India, Import substitution of around Rs 20,000 crore every year, promotion of newer and niche cell technologies, setting up of a cumulative 50 GWh of ACC manufacturing facilities in India, and more.

The ACC manufacturing will facilitate demand for EV’s which are significantly less polluting. The ACC program will be a key contributing factor to reduce India’s Green House Gas (GHG) emissions, helping India pursue an ambitious renewable energy agenda.

Another major benefit of the scheme is the net saving 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.

Anand Gupta Editor - EQ Int'l Media Network