The Centre on Wednesday approved the PLI scheme for manufacturing ACC batteries. Additionally, the expected expenditure is Rs. 18,100 crores. PLI is the acronym for Production Linked Incentive. On the other hand, ACC stands for Advanced Chemistry cell.
The National Programme on ACC Battery
The National Programme on ACC battery storage is expected to attract an Rs. 45,000 crore investment from foreign and domestic investors. Its aims to promote the ‘Make in India’ initiative. A cabinet meeting was held for the same purpose. Prakash Javadekar, information and broadcasting minister made the announcement. He stated that the tender aims at producing 50 gigawatts of battery storage. Firms with high production capability might receive the incentives. Besides that, the policy aims to make the producers competitive worldwide. It will also help boost exports and achieve economies of scale.
What are ACC Batteries?
The ACC or Advanced Chemistry Cell is the new generation storage technology. It stores electric energy either in electrochemical or chemical energy form. Then as per requirement, converts it back to electric energy. Experts believe that this technology will dominate the future battery world. Battery-consuming sectors are expected to grow vigorously in the future. Consumer electronics, solar cells, electric vehicles, etc. will have high demands in the coming years.
Eco-Friendly and Future-Oriented
Besides economic benefits, this program will provide environmental benefits too. Firstly, it is non-harmful for the climate. Secondly, the batteries are eco-friendly. Moreover, they promote the ‘Make in India’ and ‘Aatmnirbhar Bharat’ programs. This scheme will also bring employment opportunities. It might attract both domestic as well as foreign investors. ACC batteries will facilitate the demand for electronic vehicles. Electronic Vehicles or EVs are eco-friendly. The ACC program will contribute to minimizing greenhouse gas emissions from India.
Investments and Manufacturing
Several companies have already started investing in ACC battery packs. Currently, imports are helping in meeting the demands for batteries. The National Programme on ACC battery storage will reduce import necessity. Most probably, the manufacturers will go through a bidding process. Each manufacturer will have to set up a 5 GWH capacity manufacturing facility. They will also ensure a 60 percent domestic value addition at the project level in five years. Moreover, it will have an emphasis on research and development.