‘Great Response’: Min of Heavy Ind on ACC PLI Scheme’s Pre-bid Meeting

The Ministry of Heavy Industries (MHI) organised a pre-bid conference for prospective bidders for the ACC Production Linked Incentive (PLI) scheme on 12th November, 2021. MHI had earlier released a Request for Proposal (RfP) on October 22, 2021, 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 pre-bid conference received wide participation and interest from bidders both in person and virtually with around 100 participants from about 20 companies, stated MHI.

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

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

Key features of the ACC PLI Scheme’s 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.

ACCs are the new generation advanced 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. 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.

While several companies have already started investing in battery packs (though the capacities of these facilities are too small when compared to global averages), there still is negligible investment in the manufacturing, along with value addition, of ACCs in India. 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. It will support the Atmanirbhar Bharat initiative,” said MHI.