2021-06-11
Official Gazette Notification of Government of India with the detailed guidelines on Advance Chemistry Cell (ACC) Battery Storage Program under Production Linked Incentive (PLI) Scheme released

Official Gazette Notification of Government of India with the detailed guidelines on Advance Chemistry Cell (ACC) Battery Storage Program under Production Linked Incentive (PLI) Scheme released

The Department of Heavy Industry issued the notification for the Production Linked Incentive (PLI) scheme on National Programme on Advanced Chemistry Cell (ACC) Battery Storage for implementation of giga-scale ACC manufacturing facilities in India. The total incentive payout over the period of 5 years of the Scheme will be Rs. 18,100 crore.

Advance Chemistry Cells (ACCs) are the new generation advance energy 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.
 
Empowered Group of Secretaries (EGoS) chaired by Cabinet Secretary will monitor the PLI scheme, undertake periodic review of the outgo under the scheme and take appropriate action to ensure that the expenditure is within the prescribed outlay. EGoS shall be fully empowered to make any changes required in the modalities of the scheme subject to the condition that the overall financial outlay remain within ₹ 18,100 crores.
 
The scheme envisages setting up of a cumulative ACC manufacturing capacity of fifty (50) GWh for ACCs and an additional cumulative capacity of (5) GWh for Niche ACC Technologies. Incentives will be offered only to those firms (hereinafter called the “Beneficiary Firm”) that have been allocated ACC production capacity (with cumulative capacity for all beneficiary firms combined together 50 GWh) under the said Programme through a transparent mechanism by inviting the Request for Proposal (RFP). The recipient company shall undertake to install at least five (5) GWh of ACC manufacturing facilities. The total annual cash subsidy to be paid by the Government will be capped at 20 GWh per beneficiary company.
 
In addition to 50 GWh of cumulative ACC capacity, 5GWh of cumulative capacity would be offered to “Niche” ACC technologies of higher performance with a minimum threshold capacity of500 MWh. This initiative would also be technologically agnostic. Only the higher performance parameters would be the prerequisite for being eligible.
 
The manufacturing facility as proposed by the beneficiary firm under the RFP would have to be commissioned
within a period of 2 years. The subsidy will be disbursed thereafter over a period of 5 years.
 
The beneficiary has to ensure achieving a domestic value addition of at least 25% and incur the mandatory investment (₹ 225 crore /GWh) within 2 Years (at the Mother Unit Level) and raise it to 60% domestic value addition within 5 Years, either at Mother Unit, in-case of an Integrated Unit, or at the Project Level, in-case of “Hub & Spoke” structure (the “Project”), as will be specified in the Request for Proposal (RFP).

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