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ENERGY STORAGE
ACC Battery: Setting stage for the biggest economic opportunity yet The Union Cabinet in November approved production-linked incentives in ‘10 key sectors’ including advanced chemistry cell (ACC) battery. With the implementation finally gathering pace, now is the time for the government to kickstart measures that will help mobilize initial investment in this segment.
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he outbreak of COVID-19 has impacted nations in an enormous way. The energy materials and renewable generation and conversion market, which includes battery-powered EVs, grid storage, and personal electronic devices, has been no exception. In a short span, the pandemic caused massive interruptions in manufacturing capabilities, which has made companies realize the importance of having a more diverse supply chain and governments realize the significance of indigenous manufacturing, considering the risk of global supply chain disruptions.
When the whole industry stressed on the need for a stable, clear policy regime to boost domestic manufacturing, to tap opportunities raised during this period, the Union Cabinet in November approved production linked incentive (PLI) in 10 key sectors including ACC battery, under the Atmanirbhar Bharat vision. ACC battery has been approved a financial outlay of `18,100 crore. Automobiles and auto components have been approved `57,042 crore.
Source: IESA | November-December 2020
The PLI scheme across these specific sectors is aimed at making Indian manufacturers globally competitive, attracting investment in the areas of core competency, and developing cutting-edge technology. Additionally, the scheme is expected to ensure efficiencies, create economies of scale, enhance exports, and make India an integral part of the global supply chain.
