National Programme on Advanced Chemistry Cell (ACC) Energy Storage


    In News

    • Recently, NITI Aayog presented a report on the current status and future trends in the ACC battery sector.


    • 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 crores 
    • 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. 
      • Technology agnostic initiative – only cells with higher performance specifications (i.e., Energy Density & Cycle Life) will be eligible to avail the incentives. 
      • 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. 

    Source: NITI