Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage

To boost domestic production making India globally competitive thereby generating huge employment opportunities

Union cabinet approved Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage. Information and Broadcasting Minister Prakash Javadekar gave the details in a media briefing on May 12, 2021. The main aim of this scheme is to boost domestic production.  Thereby more employment opportunities will be generated. It aims at making India globally competitive. It aims a manufacturing 50-Gigawatt hour of ACC and 5-Gigawatt hour of Niche ACC. Total outlay approved for the scheme is Rs. 18 thousand crores. This is a crucial step towards Aatmanirbhar Bharat and it empowers the same vision.

Scheme Overview:

Scheme name: Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage
Scheme Under: Central Government
Approval Date: May 12, 2021
Beneficiaries: Manufacturers of batteries
Major Objective: To boost domestic production making India globally competitive thereby generating huge employment opportunities

Scheme Objectives and Benefits:

  • The main objective of the scheme is to increase domestic production
  • This scheme will enable to generate employment opportunities in the economy
  • Under this scheme import cost will be cut down and electric vehicle adoption will be promoted
  • This scheme will also enable increased productivity and innovation
  • In the long run, it will impact increased economic growth ad development
  • It is a crucial step towards Aatmanirbhar Bharat and Make in India mission.

Scheme Details:

  • Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) Battery Storage is approved by the Union cabinet
  • Scheme details were provided by Information and Broadcasting Minister Prakash Javadekar
  • The nodal ministry of Department of Heavy Industries proposed a programme for ACC battery storage to achieve a manufacturing capacity and the proposal was approved by the union cabinet
  • This scheme focuses to boost the domestic production of ACCs and Batteries thereby curbing the imports
  • It also tends to promote Electric Vehicle (EV) adoption
  • It aims at manufacturing 50-Gigawatt hour of ACC and 5-Gigawatt hour of Niche ACC.
  • Under this scheme, every manufacturer will set up an ACC production facility of a minimum 5-Gigawatt capacity
  • Minimum addition of 60% domestic value addition at the project level within 5 years is required
  • This domestic production of ACCs will lead to net savings of Rs. 2 to 2.5 lakh crores due to reduction in oil import bills
  • Electric vehicle adoption will also get a boost
  • This scheme will tend to reduce the dependency of the country for ACCs
  • Under this scheme the solar capacity addition will increase
  • Direct investment of Rs. 45,000 crore is expected by the government
  • Total outlay approved for the scheme is Rs. 18,000 crores
  • PLI scheme is a vital step towards Aatmanirbhar Bharat and Make in India mission
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