Ola electric, Reliance arm, Rajesh Exports sign PLI pacts for batteries

The government approved the production-linked incentive (PLI) scheme for achieving a manufacturing capacity of 50 GigaWatt Hour (GWh) of advanced chemistry cell (ACC) for enhancing the country's manufacturing capabilities

The Centre has signed contracts with three companies - Ola Electric Mobility, Reliance New Energy and Rajesh Exports - under an ₹18,100-crore production-linked incentive (PLI) scheme for advanced chemistry cell battery storage. The government approved the scheme for achieving a manufacturing capacity of 50 GigaWatt Hour (GWh) of ACC for enhancing the country's manufacturing capabilities, news agency PTI reported.

Ola Electric Mobility, Reliance New Energy and Rajesh exports sign PLI pacts for batteries. (File photo)

The private players are expected to create a battery manufacturing capacity of 95 GWh in addition to the capacities allocated under the PLI programme by the heavy industry ministry, PTI added.

Minister for heavy industries Mahendra Nath Pandey said the scheme embarks a new chapter in the country's manufacturing industry as the government sets the vision for battery manufacturing and competes globally with other nations in this sunrise sector.

“This (scheme) will be favourable to the EV (Electric Vehicle) ecosystem and energy storage market as it will support the demand for EVs and renewable and attract investment in this sector,” Pandey told the news agency on Friday.

"Today big companies are investing in battery manufacturing in India. We should support them and make India a truly global manufacturing hub. This will also help us to achieve India's commitment to Panchamrit given by Prime Minister Narendra Modi in COP 26," the minister added.

A total of ten bids were received from companies with a manufacturing capacity of 128 GWh under the PLI Scheme of ACC Battery Storage.

As per the ACC PLI program, the manufacturing facility would have to be set up within two years. The incentive will be disbursed thereafter over five years on the sale of batteries manufactured in India.

The scheme comes days after the Central Consumer Protection Authority (CCPA) took cognizance of incidents related to electric vehicles catching fire and issued a show cause notice to five manufacturers.

(With PTI inputs)