Ola Electric, Hyundai Global qualify for sops under PLI for batteries: Report

Ola Electric, Hyundai Global Motors Company, Reliance New Energy Solar, and Rajesh Exports have been approved for receiving incentives under the government's ₹18,100 crore Production Linked Incentive (PLI) scheme for battery manufacturing in the country, PTI reported, citing sources.

The government had received bids from ten companies with a capacity of 130 GWh. Other companies that had applied for the PLI scheme for Advanced Chemistry Cell (ACC) batteries were Lucas - TVS, Mahindra & Mahindra, Amara Raja Batteries, Exide Industries, Larsen & Toubro and India Power Corporation Limited, a source said.

The scheme was open for applications till 11 am on January 14 and the technical bids were opened on January 15. The firms that have been selected under the PLI scheme will be required to set up the manufacturing facility within a period of two years. The incentive will be disbursed thereafter over a period of five years on the sale of batteries manufactured in the country.

The government approved the PLI scheme 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage' for achieving manufacturing capacity of 50 Giga Watt Hour (GWh) for enhancing the country's manufacturing capabilities with a budgetary outlay of ₹18,100 crore.

The Heavy Industries Minister had earlier stated that the scheme received an encouraging response from local as well as global investors. The bids received was 2.6 times the manufacturing capacity to be awarded i.e. 50 Gwh. The scheme is expected to result in savings to the nation on account of reduction in import of crude oil to a significant extent and increase the share of renewable energy at the national grid level.

The scheme for ACC along with PLI scheme for the automotive sector and FAME is expected to the country to move towards an environmentally cleaner, sustainable, advanced and more efficient electric vehicles (EV) based system.

(with inputs from PTI)