MHI battery tender under PLI scheme gets oversubscribed

The Ministry of Heavy Industries’ (MHI) tender to select manufacturers for setting up production capacities for at least 50 GWh of advanced chemistry cell (ACC) for energy storage under the production-linked incentive (PLI) programme was oversubscribed by 2.6 times with 130 GWh capacity.  Reliance New Energy Solar, Hyundai Global Motors, Ola Electric Mobility, Lucas-TVS, Mahindra & Mahindra, Amara Raja Batteries, Exide Industries, Rajesh Exports, Larsen & Toubro, and India Power Corporation were among the 10 companies that filed bids for the tender. According to the reports, the production facilities must be established up within two years.  The incentive would be paid out after the facilities were set up over a five-year period based on the sale of the batteries.

In November 2021, MHI floated a global tender to develop a cumulative 50 GWh of advance-chemistry battery cell manufacturing units. This tender has been issued under the government’s production-linked incentive scheme. As per the tender guidelines, to be eligible for the government subsidy, bidders must agree to building an advanced-chemistry cell production plant with a capacity of between 5 GWh and 20 GWh within five years of selection. They must also commit to adding at least 25 per cent value to the initiatives within two years of the scheduled start date, and at least 60 per cent within five years.

In June 2021, the Department of Heavy Industry released a detailed notification on the production-linked incentive (PLI) scheme, National Programme on Advanced Chemistry Cell (ACC) Battery Storage, for the implementation of giga-scale ACC manufacturing facilities in India. With an outlay of Rs 181 billion, this programme aims to achieve an ACC manufacturing capacity of 50 GWh.

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