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Reliance, Ola Electric, Hyundai approved for govt's battery PLI scheme: Sources

Reliance, Ola Electric, Hyundai approved for govt's battery PLI scheme: Sources

Ola Electric and Hyundai will get incentives for 20 gigawatt hours (Gwh) capacity while Reliance and Rajesh Exports have won incentives for 5 Gwh, according to a report.

The government approved the PLI scheme 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage'. (representational image) The government approved the PLI scheme 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage'. (representational image)

The central government is likely to announce the winners of its Rs 18,100 crore production linked incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage on Monday.

Among the winning bids, Ola Electric, Reliance New Energy Solar, Hyundai and Rajesh Exports have been approved for the scheme, government sources told Business Today TV.

Ola Electric and Hyundai will get incentives for 20 gigawatt hours (Gwh) capacity while Reliance and Rajesh Exports have won incentives for 5 Gwh, according to a Reuters report earlier.

Earlier, the Centre had said that a total of 10 bids with capacity of 130 Gwh -- over twice the manufacturing capacity to be awarded -- were received. The companies included RIL subsidiary Reliance New Energy Solar, Hyundai Global Motors, Ola Electric, Mahindra & Mahindra and Larsen & Toubro (L&T).

The government approved the PLI scheme 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage' for achieving manufacturing capacity of 50 Giga Watt Hour (GWh) for enhancing India's manufacturing capabilities with a budgetary outlay of Rs 18,100 crore. Under the scheme, 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 scheme received an encouraging response from local as well as global investors as bids received is 2.6 times the manufacturing capacity to be awarded i.e. 50 Gwh,'' the heavy industries ministry had earlier stated. The technical bids received for the scheme were opened on Saturday. According to the government, the incentive structure would encourage industry to promote fresh investments in indigenous supply chain/ deep localisation for battery manufacturing in the country.

The ACC PLI scheme is expected to result in savings to the nation on account of reduction in import of crude oil to a significant extent and increase the share of renewable energy at the national grid level, the statement said. The scheme for ACC along with PLI scheme for the automotive sector and FAME will enable India to leapfrog to environmentally cleaner, sustainable, advanced and more efficient electric vehicles (EV) based system.

(With agency inputs)