MHI Invites Re-Bidding For 10 GWh ACC Manufacturing Under PLI

MHI Invites Re-Bidding For 10 GWh ACC Manufacturing, Under PLI

The Ministry of Heavy Industries (MHI) recently released a tender for re-bidding of Production Linked Incentives (PLI) for 10 GWh Advanced Chemistry Cell (ACC) manufacturing.

The Ministry of Heavy Industries (MHI) invited applicants to submit bids to set up a domestic manufacturing facility for ACC. This can help them qualify for incentives under the PLI ACC scheme. The bidding process will be held online through a transparent two-stage process under the Quality and Cost Based Selection (QCBS) mechanism through the CPP Portal. The tender documents are available from 24/01/2024, and the pre-bid conference is to be held on 12/02/2024. The bid due date is 22/04/2024, and bids are to be opened on 23/04/2024.

MHI promotes the development and growth of three sectors in the country, i.e., capital goods, automobiles, and heavy electrical equipment. Through the PLI Auto and Auto components scheme, MHI supports enhancement in India’s manufacturing capabilities and exports in the automobile and the automobile components sector with the prime objectives of deep localization, creating economies of scale and building a robust supply chain in areas of Advanced Automotive Technology (AAT) products.

Commenting on the rebidding of PLI for ACC, Mahendra Nath Pandey, Union Minister of Heavy Industries, said, “MHI is supporting the growth of India’s manufacturing capabilities and exports in the automobile and automobile component sector. Prime Minister Narendra Modi has adopted the vision of making the country net zero by 2070. Keeping this in mind, in recent years, the Ministry of Heavy Industries has taken several initiatives to promote environment-friendly product manufacturing in the automotive industry, such as PLI-Auto, PLI – Advanced Chemistry Cell, and FAME-II schemes.”

In May 2021, the Cabinet approved the technology-agnostic PLI Scheme on ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ for achieving a manufacturing capacity of Fifty (50) Giga Watt hours (GWh) of ACC with an outlay of Rs.18,100 Crore. The first round of the ACC PLI bidding was concluded in March 2022. Three companies were allocated a total capacity of Thirty (30) giga-watt hours (GWh), and the program agreement with selected companies was signed in July 2022.

Further, MHI, Government of India has released a Request for Proposal (RfP) for Shortlisting and Selection of bidders under the Production Linked Incentive (PLI) Scheme ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ for setting up of Battery Manufacturing Units with a total manufacturing capacity of 10 Giga Watt Hour (GWh) with a maximum budgetary outlay of Rs.3,620 crore.