The Government on 12th May, 2021 approved a Production Linked Incentive (PLI) Scheme for manufacturing of Advance Chemistry Cell (ACC) in the country. The total outlay of the scheme is INR 18,100 Crore for a period of 5 years. The scheme envisages to establish a competitive ACC battery manufacturing set up in the country (50 GWh). Additionally, 5GWh of niche ACC technologies is also covered under the Scheme. The scheme proposes a production linked subsidy based on applicable subsidy per KWh and percentage of value addition achieved on actual sales made by the manufacturers who set up production units. This scheme will facilitate reduction of import dependence of ACC battery and will reduce prices of batteries used in electric vehicles.
This report has been authored by Mishika Nayyar, Devika Chawla, Azaad Sandhu, Chitra Negi Jain, Abhishek Bansal, Shikhar Goel and Arishna Saxena
