Four companies - Rajesh Exports, Hyundai Global Motors Company, Ola Electric Mobility and Reliance New Energy - are eligible for receiving benefits under the production-linked incentive (PLI) scheme for advanced chemistry cell battery storage, the heavy industries ministry said on Thursday.
The allotment was made for a total of 50 GWh of battery capacity to the four successful bidders.
These firms, the ministry said, will receive incentives under India's Rs 18,100 crore programme to boost local battery cell production.
"A total of four companies are selected for the incentive under PLI scheme for Advanced Chemistry Cell (ACC) battery storage," it said in a statement.
Hyundai Global Motors Company Ltd and Ola Electric Mobility Pvt Ltd bagged 20 GWh each, while Reliance New Energy Solar Ltd and Rajesh Exports won 5 GWh each. Heavy Industries Mahendra Nath Pandey said that today, the increase in demand for EVs due to a favourable 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," he said.
It said that ten companies had submitted their bids under the ACC battery storage programme for which request for proposal (RFP) was released by the ministry on October 22, 2021.
The scheme was open for receiving applications till January 14 and the technical bids were opened on January 15.
All ten bids were evaluated and nine companies were found responsive and meeting the conditions of eligibility as per the requirements under the RFP.
The financial bids for the qualified bidders were opened on March 17.
The final evaluation of the selected bidders was carried out as per quality and cost-based selection mechanism and they were ranked based on their combined technical and financial score.
"The ACC capacities have been allocated in order of their rank, till a cumulative capacity of 50 GWh per year. Shortlisted Bidders that are not successful in securing allocation are placed under a waiting list," the ministry said.
Companies that are on the waiting list are Mahindra & Mahindra Ltd, Exide Industries Ltd, Larsen & Toubro Ltd, Amara Raja Batteries Ltd and India Power Corporation Ltd.
The ministry said that the manufacturing facility will have to be set up within two years.
The incentive will be disbursed thereafter over five years on the sale of batteries manufactured in India.
The government approved the PLI scheme 'National Programme on ACC Battery Storage' for achieving a manufacturing capacity of 50 Giga Watt Hour (GWh) of ACC to enhance manufacturing capabilities with a budgetary outlay of Rs 18,100 crore.
Under the initiative, the emphasis of the government is to achieve greater domestic value addition, while at the same time ensuring that the levelised cost of battery manufacturing in India is globally competitive.
The beneficiary firm will be free to choose suitably advanced technology and the corresponding plant and machinery, raw material and other intermediate goods for setting up a cell manufacturing facility to cater to any application.
The programme envisages an investment to boost domestic manufacturing and also facilitate battery storage demand creation for electric vehicles and stationary storage along with the 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," it said.