Ola, Reliance And Rajesh Exports Sign Programme Agreement Under Rs 18,100 Crore PLI Scheme For Battery Manufacturing

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The government on Thursday (28 July) signed the programme agreements under the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage with Reliance New Energy Limited, Ola Electric and Rajesh Exports – the three selected beneficiaries of the scheme.

These companies will receive incentives under India’s Rs 18,100 crore PLI scheme for ACC battery storage.

The government had last year approved the PLI scheme ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ for achieving manufacturing capacity of 50 Giga Watt Hour (GWh) of ACC for enhancing country’s manufacturing capabilities with a budgetary outlay of Rs 18,100 crore.

A total of 10 bids were received from companies with manufacturing capacity of 128 GWh under the PLI Scheme of ACC Battery Storage.

Earlier in March this year, a total of four companies, including Reliance New Energy Solar Limited, Ola Electric and Rajesh Exports were selected for availing incentives under the PLI for ACC battery storage.

Both, Ola Electric was awarded 20 Gigawatt-hour (GWh) capacity while Rajesh Exports and Reliance were awarded 5 GWh capacity each, under the scheme.

The Heavy Industries Ministry in a statement on Friday (29 July) said that in addition to the capacities allocated by it under the PLI programme, private players are expected to create battery manufacturing capacity to the tune of around 95 GWh.

Under the ACC PLI programme, the manufacturing facility would have to be set up within a period of two years. The incentive will be disbursed thereafter over a period of five years on sale of batteries manufactured in India.

The programme is designed in such a manner that it is technology agnostic in nature and hence only focus on the desired output of the batteries. Thereby the beneficiary firm shall be free to choose suitable advanced technology and the corresponding plant & machinery, raw material, and other intermediate goods for setting up cell manufacturing facility to cater to any application.