Reliance New Energy Solar and others bid for ACC PLI scheme
Around 10 companies bid under Rs. 18,100 crores for the ACC PLI scheme. A source reported as RIL subsidiary Reliance New Energy Solar, Hyundai Global Motors, Ola, Mahindra & Mahindra, Larsen & Toubro, India Power Corp Ltd., Rajesh Exports Limited, Amara Raja Batteries Ltd., Exide Ind. Ltd., and Lucas-TVS Limited companies have submitted bids for government’s Production-Linked Incentives scheme for advanced chemistry cells.
Further, the government report said as the companies submitted bids for setting up about 130 gigawatt-hour for cell manufacturing capacity. It remains estimated that 50 GWh of capacity would be enough to supply approximately 125,000 electric scooters a year.
The main aim of the PLI scheme remains to boost localizing the EV supply chain in India. Now, the electric vehicles in India are entirely dependent on imported cells, mostly from China, despite being one of the key components for EVs.
Further, the lithium-ion cell makers along with leading Chinese players and Samsung, LG, Panasonic companies missed this government scheme, said a source. Those companies mainly focus on Europe, the US markets because they have higher pricing power in the market. Furthermore, these markets provide better returns on investments.
As of the bid results, the scheme received a positive response from both local and global investors. It received a bid for 2.6 times the manufacturing capacity to be awarded 50 Gwh.