The Union Cabinet on May 12 approved the extension of the Production-Linked Incentive (PLI) scheme for the domestic manufacturing of advanced chemistry cell also known as battery storage.
Announcing the scheme, Minister of Environment, Forest and Climate Change, Information and Broadcasting and Minister of Heavy Industries and Public Enterprises, Prakash Javadekar said, "The PLI for advanced chemistry cell that is battery storage will be of Rs. 18,100 crore. I twill help in the production of 50 gigawatts of battery storage. We expect Rs. 45000 crore worth of investment foreign as well as Indian,"
The government has announced Rs. 18,100 crore worth of benefits for battery storage manufacturing with an aim to make India 'aatmanirbhar' in the crucial sector, said Javadekar.
The latest move is expected to to offset imports currently pegged at a high Rs 20,000 crore, and boost climate friendly growth.
"Now as we are producing battery storage, it will help in net saving of the import bill as we are importing all requirement of battery storage and at the same time reflect on our climate friendly growth path. It will be used in consumer electronics, electric vehicles, advanced electricity grids, solar rooftop, solar power plants etc. which are major battery consuming sectors," Javadekar noted.
It will also promote green growth and use local products like copper and bauxite to a large extent, he added.
The scheme will facilitate direct investment of around Rs 45,000 crore in ACC Battery storage manufacturing projects. At least Rs 2,00,000 crore to Rs 2,50,000 crore will be saved on account of oil import bill reduction during the period of this scheme, the Cabinet said.
In all, 13 PLI schemes are being implemented by the Centre of which 9 have been approved till now by the Centre. These include benefits for automobiles, IT hardware including mobile phones & telecom equipment, white goods, chemical cells and textiles.
Javadekar said that the domestic manufacturing of battery storage will increase the adaption of electric vehicle which is rapidly picking up and at the same time create more job opportunities.
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