Reliance New Energy Solar, Ola among firms selected for PLI scheme

The selected companies which include Reliance New Energy Solar, Ola Electric Mobility, Hyundai Global Motors Co will receive incentives under India's Rs 18,100 crore-programme for local production

Reliance New Energy Solar, Ola Electric Mobility, Hyundai Global Motors, and Rajesh Exports are among four firms that have been selected for the production-linked incentive (PLI) sch­eme for advanced chemistry cell (ACC) battery storage.

According to a statement released by the Ministry of Heavy Industries on Thu­rsday, the selected firms will receive incentives under India’s Rs 18,100- crore programme to boost local battery cell production.

The five firms that unsuccessfully bid for the scheme — Mahindra & Mahindra, Larsen & Toubro, Amara Raja Batteries, India Power Corp, and Exide Industries — are placed under a waiting list.

The selected companies will have 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 sale of batteries manufactured in India.

“India has the strongest government support for electrification in the whole world! Excited to be selected for the PLI scheme for manufacturing world class cells in India. Today, 90 per cent of global capacity is in China. We will reverse that and make India a global hub for EVs and cell tech,” tweeted Bhavish Aggwarwal, co-founder and CEO, Ola Cabs.

The beneficiary firms will be free to choose suitable advanced technology and the corresponding plant and machinery, raw material and other intermediate goods for setting up cell manufacturing facilities to cater to any application.

The PLI scheme for ACC along with the already launched PLI scheme for automotive sector (Rs 25,938 crore) and Faster Adaption of Manufacturing of Electric Vehicles (FAME) (Rs 10,000 crore) will enable India to leapfrog from traditional fossil fuel-based automobile transportation system to environmentally cleaner, sustainable, advanced and more efficient EV based system, said the statement.

Through these schemes, the government seeks to achieve greater domestic value addition and ensure the “levelised cost of battery manufacturing in India is globally competitive,” it said.