Investors attracted to increase in EV demand, says Dr Pandey
Four companies have been selected for incentive under Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage as a response to increase in demand for EVs due to a favorable regulatory framework.
The companies are Reliance New Energy Solar Limited, Ola Electric Mobility Private Limited, Hyundai Global Motors Company Limited and Rajesh Exports Limited.
These companies will receive incentives under India’s Rs.18,100 crore programme to boost local battery cell production.
Commenting on the PLI Scheme for ACC Battery Storage, Minister for Heavy Industries Dr. Mahendra Nath Pandey said on 24 Mar 2022, “The increase in demand for EVs due to a favorable regulatory framework, has mainly attracted investment in this sector.
“Today big companies are investing in electric vehicle manufacturing in India and are interested to join us. We should give them more encouragement and keep trying to make India a manufacturing hub. Growth in EV segment of auto industry will provide huge employment opportunities to Indian youth.”
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 Program envisages an investment which will boost domestic manufacturing and also facilitate battery storage demand creation for both electric vehicles and stationary storage along with development of a complete domestic supply chain and Foreign Direct Investment in the country.
ACC PLI scheme is expected to accelerate EV adoption and hence translate into net savings of Rs.200,000 crore to Rs.250,000 crore on account of oil import bill during the period of this Programme and increase the share of renewable energy at the national grid level.
This PLI scheme for Advanced Chemistry Cell (ACC) (Rs.18,100 crore) along with the already launched PLI Scheme for automotive sector (Rs.25,938 crore) and Faster Adaption of Manufacturing of Electric Vehicles (FAME) (Rs.10,000 crore) will enable India to leapfrog from traditional fossil fuel-based automobile transportation system to environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles (EV) based system. fiinews.com
