In a strategic move towards bolstering India’s manufacturing capabilities and advancing clean energy initiatives, the Ministry of Heavy Industries (MHI) has announced the re-bidding of Production Linked Incentives (PLI) for Advanced Chemistry Cell (ACC) manufacturing. The bidding process, set to commence on the 24th of January 2024, invites prospective applicants to establish giga-scale ACC manufacturing facilities with a cumulative capacity of 10 GWh under the PLI ACC scheme.
This ambitious initiative aligns with the government’s commitment to fostering sustainable practices and reducing the nation’s dependence on fossil fuels. The PLI ACC scheme aims to incentivise the domestic production of ACC, a critical component in the burgeoning electric vehicle (EV) and renewable energy sectors.
The bidding process will unfold through a transparent two-stage mechanism, utilising the Quality and Cost Based Selection (QCBS) approach via the CPP Portal. Interested parties can access the tender documents starting from the 24th of January 2024, with a pre-bid conference scheduled for the 12th of February 2024. The bid submission deadline is set for the 22nd of April 2024, followed by the opening of bids on the 23rd of April 2024.
MHI, which plays a pivotal role in promoting the growth of capital goods, automobile, and heavy electrical equipment sectors in India, sees the re-bidding as a crucial step in achieving the objectives of the Faster Adoption and Manufacturing Electric Vehicles (FAME-II) scheme. The PLI Auto and Auto components scheme, another initiative by MHI, supports the enhancement of manufacturing capabilities in the automobile sector, focusing on Advanced Automotive Technology (AAT) products.
Dr Mahendra Nath Pandey, Union Minister of Heavy Industries, emphasised the commitment of MHI to propel India towards self-reliance and development. He underscored the significance of Prime Minister Narendra Modi’s vision of making the country net-zero by 2070. The Ministry’s recent initiatives, including PLI-Auto, PLI-Advanced Chemistry Cell, and FAME-II schemes, aim to encourage environmentally friendly product manufacturing in the automotive industry.
The background to this re-bidding traces back to May 2021 when the Cabinet approved the technology-agnostic PLI Scheme on the ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage.’ The initial round of ACC PLI bidding concluded in March 2022, with three companies allocated a total capacity of 30 GWh. Program agreements with the selected companies were signed in July 2022.
Additionally, the Government of India, through MHI, has released a Request for Proposal (RfP) for the shortlisting and selection of bidders under the PLI Scheme, with a total budgetary outlay of ₹3,620 crore for setting up Battery Manufacturing Units with a capacity of 10 GWh.
