Prime Minister Narendra Modi's Union Cabinet approved an Rs 18,100-crore production-linked incentive (PLI) scheme for building Tesla-style Gigafactories to produce batteries on Wednesday.
After the Cabinet meeting, Information and Broadcasting Minister Prakash Javadekar told reporters that the National Programme on Advanced Chemistry Cell (ACC) Battery Storage is expected to attract investment of Rs 45,000 crore, with the aim of promoting the "Make in India" initiative.
What are ACCs?
ACCs are a new generation of advanced storage technologies that can store electric energy as either electrochemical or chemical energy and then convert it back to electricity as required. Consumer electronics, electric cars, advanced power grids, solar rooftops, and other industries that use a lot of batteries are expected to expand rapidly in the coming years. Some of the world's largest developing markets are projected to be dominated by dominant battery technologies.
Although many companies have begun to invest in battery packs, the capacities of these facilities are still insufficient when compared to global averages, there is still little investment in the manufacturing and value addition of ACCs in India.
This would help the country become less reliant on imports. The Atmanirbhar Bharat initiative will also be supported. Manufacturers of ACC battery storage will be chosen by a straightforward competitive bidding process. Within two years, the production plant will have to be operational. Following that, the bonus would be paid out over a five-year period.