The Ministry of Heavy Industries (MHI) announced on January 24 that it is initiating a re-bidding process for the Production Linked Incentives (PLI) linked to the manufacturing of 10 GWh Advanced Chemistry Cells (ACC). This move allows potential applicants to submit bids for the establishment of a domestic manufacturing facility for ACC, thereby making them eligible for incentives under the PLI ACC scheme.
The bidding process will be conducted online through a transparent two-stage procedure, employing the Quality and Cost-Based Selection (QCBS) mechanism via the CPP Portal, as outlined in a government release. Tender documents are available starting January 24, with a pre-bid conference scheduled for February 12. The bidding deadline is set for April 22, and bids will be opened on April 23.
Union Minister of Heavy Industries, Mahendra Nath Pandey, emphasized MHI's commitment to fostering the growth of India's manufacturing capabilities and exports in the automobile and automobile component sector. He reiterated MHI's dedication to advancing Prime Minister Narendra Modi's vision of a self-reliant ('Atmanirbhar') and developed India ('Viksit Bharat').
PM Modi's goal of achieving net-zero emissions by 2070 has spurred MHI to implement various initiatives promoting environmentally friendly manufacturing in the automotive industry, including schemes like PLI-Auto, PLI-Advanced Chemistry Cell, and FAME-II. The government, through MHI, is actively working to encourage clean and green public transport under the Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) scheme, aiming to reduce reliance on fossil fuels and address vehicular emissions.
In May 2021, the Cabinet approved the technology-agnostic PLI Scheme under the 'National Programme on ACC Battery Storage' with a target manufacturing capacity of 50 GWh of ACC, backed by an investment of Rs. 18,100 crore. The first round of ACC PLI bidding concluded in March 2022, allocating a total capacity of 30 GWh to three companies. Program agreements with the selected companies were subsequently signed in July 2022. MHI and the government have also issued a Request for Proposal (RFP) for shortlisting and selecting bidders under the PLI Scheme for setting up Battery Manufacturing Units with a total capacity of 10 GWh and a maximum budgetary outlay of Rs 3,620 crore.