With the Union Cabinet approving production-linked incentive (PLI) scheme for advance chemistry cell (ACC) battery manufacturing on Wednesday together with 9 different sectors, the Niti Aayog has floated draft mannequin bid paperwork for establishing ACC items for which the federal government will provide a subsidy of most 20% of the sale value of the ACC or cumulative subsidy not exceeding Rs 1,420 crore per GWh (giga watt hours) to the beneficiary agency through the time period of the settlement.
While the subsidy shall be 100% within the first yr, the federal government will low cost the subsidy by means of a year-on-year discount for the time period of the venture in a manner that it’s going to come all the way down to 12% within the 10th yr.
“ACC battery manufacturing represents one of the largest economic opportunities of the twenty-first century for several global growth sectors, such as consumer electronics, electric vehicles and renewable energy. The PLI scheme for ACC battery will incentivise large domestic and international players in establishing a competitive ACC battery set-up in the country,” Niti Aayog CEO Amitabh Kant mentioned.
The subsidy assist shall be restricted to a cumulative 50 GWh of ACC manufacturing capability in India, with a single beneficiary not allowed greater than 20 GWh cell manufacturing facility. Furthermore, to encourage economies of scale, minimal bid could also be restricted to five GWh capability, which can be developed in phases over a five-year window, Niti Aayog mentioned.
This umbrella-level initiative proposes varied fiscal incentives via a single-window mechanism to make home ACC manufacturing trade globally aggressive. In addition, the programme additionally proposes a composite framework for imposition of appropriate fundamental customized responsibility with the intent to advertise phased manufacturing of ACCs and its parts in India and makes suggestions for selling the general market demand for ACCs in India, it mentioned.
Niti Aayog has sought stakeholders’ feedback on draft paperwork, together with the request for proposal (RFP), earlier than December 14, 2020. The authorities think-tank is facilitating the federal government to hold out a bidding course of and seeks bids as response to this RFP from people, LLPs, funds, non-public entities, public entities or different worldwide entities.
The beneficiary agency must set up a venture to fabricate ACC battery as quoted by the chosen bidder in its technical bid and make an funding of minimal `225 crore per GWh (excluding the price of land) inside two years from the appointed date. It has additionally to make sure worth addition to be at the least 25% on the mom unit degree and minimal 60% of the general home worth addition.
“State governments shall also extend support and provide additional incentives for implementation of the project, through the execution of a tripartite agreement between the SPV, state government and the government (Centre),” the Niti Aayog mentioned within the doc.