Major entities such as Reliance Industries, Larsen & Toubro (L&T), Mahindra & Mahindra, Ola and Hyundai Motors are among the 10 companies that have submitted bids under the Rs 18,100 crore production linked incentive (PLI) scheme for battery manufacturing in India.
The heavy industry ministry said in a statement that 10 companies submitted their bids in response to the Request for Proposal (RFP), which it released on October 22, 2021.
The other companies that have applied for the PLI scheme are Lucas-TVS Limited, Amara Raja Batteries Limited, Exide Industries Limited, Rajesh Exports Limited and India Power Corporation Limited.
The selected companies should set up production facilities within a period of two years. The incentive will then be paid over a period of five years on sales of batteries made in India.
The government had approved the National Program on Advanced Chemistry Cell (ACC) Battery Storage PLI scheme for achieving a production capacity of 50 Giga Watt Hour (GWh) ACC for improving the country’s production capacity with a budget expenditure of Rs 18,100 crore.
This arrangement focuses on achieving greater domestic value addition while ensuring that the assimilated cost of battery manufacturing in India is globally competitive.
The program foresees an investment that will boost domestic production and also facilitate the demand for battery storage for both electric vehicles and stationary storage, along with the development of a complete domestic supply chain and foreign direct investment (FDI) in the country.