Commercial Production Under India’s Incentive Scheme for Advanced Chemistry Cell Manufacturing

August 25, 2023

India’s production-linked incentive scheme for advanced chemistry cell manufacturing, a program worth Rs 18,100 crore aimed at boosting local battery cell production, is poised to initiate commercial production progressively in phases within the current financial year.

The Ministry of Heavy Industries has granted 30GWh of capacity to three beneficiaries: Ola Cell Technologies Pvt. Ltd, ACC Energy Storage Pvt Ltd, and Reliance New Energy Battery Storage Ltd. An additional 20GWh is in the process of being awarded, with the goal of achieving 50GWh of production by 2030. Engineers India Limited (EIL) has been appointed as an Independent Engineer to monitor the progress of the selected beneficiaries. The scheme contributes to India’s Electric Mobility and Battery Storage ecosystem and aligns with the Atmanirbhar Bharat (Self-Reliant India) initiative.

What is the aim of India’s production-linked incentive scheme for advanced chemistry cell manufacturing?

The scheme aims to bolster India’s domestic battery cell production capabilities by incentivizing manufacturers. It contributes to the growth of the Electric Mobility and Battery Storage ecosystem in the country, aligning with the Atmanirbhar Bharat initiative for self-reliance.

Which beneficiaries have been awarded capacity under the scheme?

What is the target for battery cell production under this scheme?

The target is to achieve a production capacity of 50GWh by 2030 through this scheme. The current awarded capacity of 30GWh is expected to increase with the ongoing process of awarding another 20GWh.

How is the progress of the beneficiaries monitored?

Engineers India Limited (EIL) has been appointed as an Independent Engineer to oversee the progress of the selected beneficiaries. This ensures transparency, accountability, and efficient execution of the scheme.

How does the scheme contribute to the Atmanirbhar Bharat initiative?

The scheme promotes domestic value addition by encouraging local battery cell manufacturing. By developing the technology for Advanced Chemistry Cells within the country, the scheme aligns with the broader objective of achieving self-reliance in key sectors.

What is the significance of the beneficiary companies’ manufacturing facilities?

The manufacturing facilities of the beneficiary companies, located in Tamil Nadu, Karnataka, and Gujarat, play a crucial role in generating local employment opportunities and contributing to regional economic development. These facilities are geared toward advancing India’s capabilities in battery cell manufacturing.

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