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

The Ministry of Heavy Industries has signed contracts with three companies under the Production-Linked Incentive (PLI) Scheme for advanced chemistry cell (ACC) battery storage. The companies are Reliance New Energy Ltd, Ola Electric Mobility Pvt Ltd and Rajesh Exports.
Hyundai Global Motors was also on the shortlist for the PLI support. ET reported on July 19 that the government was re-examining its proposal, after automaker Hyundai Motor Co and its local subsidiary said they had no links with Hyundai Global Motors. In a public notice dated July 15, Hyundai Motor Co also said Hyundai Global Motors was not authorised to use its trademark and logo.

A government statement said the three selected companies would receive incentives under this Rs 18,100 crore programme. The companies are expected to create battery manufacturing capacity of about 95-gigawatt hour.

Minister for heavy industries Mahendra Nath Pandey said the scheme would be favourable to the electric vehicle ecosystem and the energy storage market, as it would support the demand for EVs and renewables and attract investment in this sector.

Ten bids were received from companies with offers to set up 128 GWh of capacity under the scheme. Under the ACC PLI programme, the manufacturing facility must be set up within a period of two years. The incentive will be disbursed over a period of five years on the sale of batteries manufactured in India.

"Now it's the time for private players to take the lead and become global champions and also make the country the global hub in the energy storage segment," heavy industries secretary Arun Goel said.

The Centre's emphasis is to achieve greater domestic value addition, while ensuring that the levelised cost of battery manufacturing in India is globally competitive. The programme is designed in such a manner that it is technology agnostic and hence only focus on the desired output of the batteries.

Beneficiary firms are free to choose suitable advanced technology and the corresponding plant and machinery, raw material, and other intermediate goods for setting up their manufacturing facility.