Government receives strong response for Advanced Chemistry Cell PLI Scheme; online bidding to happen in two stages

The government has received strong response towards its Production Linked Incentive (PLI) scheme for manufacturing of Advanced Chemistry Cell (ACC) battery storage, according to a government release. In a pre-bid conference organised by the Ministry of Heavy Industries (MHI) for prospective bidders for ACC PLI Scheme, the ministry witnessed participation from 100 participants from 20 companies, the release further said.  

 ACCs are the new generation advance storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required.  

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In the pre-bid conference the queries of the bidders were addressed and they were asked to seek any further clarification through e-mail. 

The event was organised on 12 November, 2021. On 22 October, the MHI had released RFP inviting bidders for a total manufacturing capacity of ACC battery storage of 50 Giga Watt Hour (GWh) with an outlay of Rs.18,100 crore. 

The bidding will be held online through a two-stage process, under the Quality and Cost Based Selection (QCBS) mechanism, the release said. 

Key features of the selection process include satisfying the eligibility criteria, transparent bidding process, full flexibility in innovation for ACC battery manufacturing, optimised payment structures, promoting self-reliant India through domestic value addition and setting up of ACC manufacturing facilities. 

The consumer electronics, electric vehicles, advanced electricity grids, solar roof top etc. which are major battery consuming sectors are expected to achieve robust growth in sales volume in the coming years. It is expected that the dominant battery technologies will control some of the world’s largest growth sectors. 

Presentations were made on the terms and conditions, technical details of ACC manufacturing and various incentives and opportunities to promote ACC battery manufacturing in the country.  

Several companies have already started investing in battery packs, though the capacities of these facilities are too small when compared to global averages, the release said. 

The investment in manufacturing is still negligible in India, it said. 

All the demand of the ACCs is currently being met through imports in India.  

The National Programme on Advanced Chemistry Cell (ACC) Battery Storage will reduce import dependence and support the Atmanirbhar Bharat initiative, the release said.