PLI Battery Scheme Has 10 Bidders. Reliance, L&T, Amara Raja Bid

Bids from 10 companies have been received for the government’s PLI Battery scheme, or ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’. Seen as a key initiative to ensure 50 GWh of ACC battery storage manufacturing capacity in the country. The Rs 18, 400 Lucas-TVS, Exide Indcrore production-linked incentive (PLI) scheme for advanced chemistry cell (ACC) battery storage programme comes under the Ministry of Heavy Industries. Once winners are decided, plants have to be set up within 2 years, with payouts spread over 5 years, based on the sales of the batteries.

The 10 companies that have submitted bids for about 130 GWh of capacity are- Reliance New Energy Solar Limited; Hyundai Global Motors Company Limited; Ola Electric Mobility Private Limited; Lucas-TVS Limited; Mahindra & Mahindra Limited; Amara Raja Batteries Limited; Exide Industries Limited; Rajesh Exports Limited; Larsen & Toubro Limited and India Power Corporation Limited .

The first Request for Proposal (RFP) for the PLI scheme was issued on October 22, 2021, with January 14 as the deadline. Final results should also be out soon, as technical bids were scheduled for January 15.

The program is designed in to be technology agnostic. Thus, the beneficiary firms will be free to choose suitable advanced technology and the corresponding plant and machinery, raw material and other intermediate goods for setting up cell manufacturing facility to cater to any application.

The battery storage initiative is seen as a key move to support both the transition to electric vehicles, and provide domestic batteries for those, as well as storage for the massive shift to renewable energy that has been planned. Batteries, especially large capacity batteries are seen as a key tool in the move to balance out the somewhat unpredictable nature of renewable energy, especially solar and wind. Some of the most recent storage capacities bid out in the past two years are expected to be installed in the next two years.

Similarly, large power generators including NTPC and the nodal agencies like SECI have also started their own initiatives to understand and plan for large battery manufacturing and installation.

Reliance, which has already been selected in the Solar PLI scheme, has also been busy, acquiring, or picking up significant stakes in battery firms Faradion and Ambri, with contrasting chemistry’s in use.