MHI seeks global bids for 10 GWh ACC manufacturing under PLI scheme

On 24/01/2024, the Ministry of Heavy Industries (MHI), Government of India, announced the re-bidding of Production Linked Incentives (PLI) for a 10 GWh Advanced Chemistry Cell (ACC) manufacturing. MHI has issued a Request for Proposal (RFP) to shortlist and select bidders under the PLI Scheme ‘National Programme on ACC Battery Storage.’ This is for the establishment of Battery Manufacturing Units with a total capacity of 10 Giga Watt Hour (GWh) with a maximum budgetary outlay of INR 3,620 crore. The bidding process enables prospective applicants to submit their bids to establish a domestic manufacturing facility for ACC, qualifying for incentives under the PLI ACC scheme. The bidding process will occur online through a transparent two-stage process, under the Quality and Cost-Based Selection (QCBS) mechanism through CPP Portal.

The tender documents are available from 24/01/2024, and a pre-bid conference will be held on 12/02/2024. The bid due date is 22/04/2024, and bids will be opened on 23/04/2024.

In May 2021, the Cabinet approved the technology-agnostic PLI Scheme for the ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage.’ The objective was to achieve a manufacturing capacity of Fifty (50) Giga Watt hours (GWh) of ACC, with a budgetary allocation of Rs.18,100 Crore. The initial round of ACC PLI bidding concluded in March 2022, resulting in the allocation of a total capacity of Thirty (30) Giga Watt hours (GWh) to three companies. The program agreement with the selected companies was signed in July 2022.

Regarding the rebidding of PLI for ACC, Dr. Mahendra Nath Pandey, Union Minister of Heavy Industries, mentioned that “MHI is supporting the growth of India’s manufacturing capabilities and exports in the automobile and automobile component sector and MHI is fully committed for taking forward Prime Minister Shri Narendra Modi’s resolve of a self-reliant (Atmanirbhar) and developed India (Viksit Bharat). Prime Minister Shri Narendra Modi has adopted the vision of making the country net zero by 2070. Keeping this in mind, in recent years, the Ministry of Heavy Industries has taken several initiatives to promote environment friendly product manufacturing in the automotive industry, such as PLI-Auto, PLI – Advanced Chemistry Cell and FAME-II schemes.”

MHI plays a role in the development of three sectors: Capital Goods, Automobile, and Heavy Electrical Equipment in the country. The government, facilitated by MHI, is promoting environmentally conscious public transport through the Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) scheme. The objective is to reduce reliance on fossil fuels and address vehicular emissions. Additionally, through the PLI Auto and Auto Components scheme, MHI supports the improvement of India’s manufacturing capabilities and exports in the automobile and automobile components sector. The goals include deep localization, creating economies of scale, and establishing a robust supply chain in areas of Advanced Automotive Technology (AAT) products.

Also read: MHI to conduct re-bidding for remaining 20 GWh cell manufacturing under PLI