Union cabinet approves National Program on Advanced Chemistry Cell Battery Storage

Under the production-linked incentive (PLI) scheme, the union cabinet has approved the “National Program on Advanced Chemistry Cell Battery Storage”. The program has an outlay of Rs 181 billion and aims to achieve 50 GWh of advanced chemistry cell and 5 GWh of niche advanced chemistry cell manufacturing capacity.

Recently, in a bid to enhance the country’s domestic solar manufacturing capabilities, the union cabinet recently approved the Ministry of New and Renewable Energy’s (MNRE) proposal to implement the PLI scheme for high-efficiency solar modules. With an outlay of Rs 45 billion, this “National Programme on High Efficiency Solar PV Modules” aims to achieve multi-GW-scale manufacturing capacity for high efficiency solar PV modules. This is the latest of the many Make in India measures adopted by the government to reduce solar cell and module imports and make the country’s solar industry more self-reliant.

As part of the PLI scheme, solar PV manufacturers will be selected through a transparent competitive bidding process. The incentives will be disbursed for five years post the commissioning of solar PV manufacturing plants, on sales of high efficiency solar PV modules. Further, manufacturers will be rewarded for higher efficiencies of solar PV modules and for sourcing material from the domestic market. Thus, the PLI amount will increase with increased module efficiency and increased local value addition.