Discrepancies in bids: Govt may give two weeks to ACC PLI applicants

The central government is planning to give a two-week window to the applicants of the 10 GWh tranche of the Advanced Chemistry Cell (ACC) Production Linked Incentive (PLI) scheme to submit all the necessary documents, Business Standard has learnt.

This decision follows the discovery of discrepancies by the Ministry of Heavy Industries (MHI) in the technical bids submitted by several participants. In some technical bids, these applicants have either not provided details of their valuation or other essential project-related information.
 

“We are planning to give two weeks’ time to submit all necessary documents to all applicants,” an official aware of the development said, adding that if the applicants fail to furnish the required documents, they will be disqualified. The discrepancy in the bids has caused the government to miss its target of completing the bidding process within a month of declaring the technical bidders.
 

On April 23, the MHI opened the technical bids, announcing seven successful bidders — ACME Cleantech Solutions Private Limited, Amara Raja Advanced Cell Technologies Private Limited, Anvi Power Industries Private Limited, JSW Neo Energy Limited, Reliance Industries Limited, Lucas TVS Limited, and Waaree Energies Limited.
 

These companies are vying to establish a cumulative capacity of 70 GWh.
 

The ACC PLI scheme is a crucial initiative aimed at bolstering domestic manufacturing capabilities and reducing reliance on imported advanced chemistry cells. The government's stringent documentation requirements highlight its commitment to a transparent and fair selection process.
 

This tender is a crucial part of the ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage,’ which aims to achieve a manufacturing capacity of 50 GWh of ACC. With financial backing of Rs 18,100 crore approved by the Cabinet in May 2021, the programme strategically seeks to reduce dependence on imported battery technologies and foster local innovation.

 

First round
 

In 2021, the government approved the ACC PLI scheme with a budgetary outlay of Rs 18,100 crore to achieve a manufacturing capacity of 50 gigawatt-hours (GWh) of ACC and an additional cumulative capacity of 5 GWh for niche ACC technologies. Bidders were selected in March 2022.
 

In the first round, Ola Electric Mobility secured 20 GWh, while Reliance New Energy Solar and Rajesh Exports each won 5 GWh.
 

According to the scheme, the manufacturing facility was scheduled to be commissioned within two years from the date the bidders signed the agreement with the MHI.
 

As these three bidders approach the end of their two-year gestation period and gear up to reach production levels in the coming months, the Centre is also preparing to enhance its capacity to test these cells, as reported by Business Standard.
 

The MHI has urged its automotive testing agencies to get accreditation from the National Accreditation Board for Testing and Calibration Laboratories (NABL) for testing cells produced under the ACC PLI.
 

 Currently, only one testing agency — Bharat Test House — is capable of testing such advanced cells.
 

With the second round of auction, the Centre aims to address India's increasing demand for electric cells and battery storage by ensuring that it is met domestically. This initiative reflects the government's commitment to bolstering the nation's self-reliance in the electric vehicle and renewable energy sectors.

IN LINE OF FIRE
 

> Decision follows the discovery of discrepancies in the technical bids submitted by several participants 
 

> In some technical bids, applicants have either not provided details of their valuation or other essential project-related
information
 

> Discrepancy in the bids has caused the government to miss its target of completing the bidding process
 

> On April 23, the MHI opened the technical bids, announcing seven successful bidders