In News
- Recently, NITI Aayog presented a report on the current status and future trends in the ACC battery sector.
About
- The report emphasises the potential role of the Production Linked Incentive (PLI) scheme on ACC energy storage in creating domestic economic value.
- The policies and incentives recommended in this report could pave the way for top-level battery manufacturers to invest in India.
National Programme on Advanced Chemistry Cell (ACC) Energy Storage
- Nodal Ministry: the Ministry of Heavy Industries & Public Enterprises, Government of India
- Budget allocation: Rs. 18,100 croresÂ
- Target: Manufacturing capacity of 50 GigaWattHour (GWh) of ACC and 5 GWh of niche ACC.
- Key Features:
- The cash subsidy will be offered on output, i.e. the volume of cells manufactured and sold by the beneficiaries.Â
- Technology agnostic initiative – only cells with higher performance specifications (i.e., Energy Density & Cycle Life) will be eligible to avail the incentives.Â
- There is an optimal sharing of risk between the beneficiary firm and the Government, and thus will bolster investors’ confidence.
- Benefits:
- Direct investment of around Rs. 45000 crore in ACC Battery storage manufacturing projects.
- It will give a boost to the Make in India Programme and attract global investments into setting-up of ‘Gigafactories’ here.
- Promoting newer and niche cell technologies.
- The manufacturing of ACCs will facilitate production and use of Electric Vehicles.
- Import substitution of around Rs.20,000 crore every year.
- Exploitation of non-renewable resources and dependency on oil imports will reduce.
- It will assist in reducing emissions and hence enabling us to achieve our INDCs.
- It will encourage the manufacturers to invest into Research & Development and to manufacture such cells in India.Â
Source: NITI
