National Programme on Advanced Chemistry Cell (ACC) Energy Storage

In News

• Recently, NITI Aayog presented a report on the current status and future trends in the ACC battery sector.

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• The report emphasises the potential role of the Production Linked Incentive (PLI) scheme on ACC energy storage in creating domestic economic value.
• The policies and incentives recommended in this report could pave the way for top-level battery manufacturers to invest in India.

National Programme on Advanced Chemistry Cell (ACC) Energy Storage

• Nodal Ministry: the Ministry of Heavy Industries & Public Enterprises, Government of India
• Budget allocation: Rs. 18,100 crores 
• Target: Manufacturing capacity of 50 GigaWattHour (GWh) of ACC and 5 GWh of niche ACC.
• Key Features:
  • The cash subsidy will be offered on output, i.e. the volume of cells manufactured and sold by the beneficiaries. 
  • Technology agnostic initiative – only cells with higher performance specifications (i.e., Energy Density & Cycle Life) will be eligible to avail the incentives. 
  • There is an optimal sharing of risk between the beneficiary firm and the Government, and thus will bolster investors’ confidence.
• Benefits:

• Direct investment of around Rs. 45000 crore in ACC Battery storage manufacturing projects.
• It will give a boost to the Make in India Programme and attract global investments into setting-up of ‘Gigafactories’ here.
• Promoting newer and niche cell technologies.
• The manufacturing of ACCs will facilitate production and use of Electric Vehicles.
• Import substitution of around Rs.20,000 crore every year.
• Exploitation of non-renewable resources and dependency on oil imports will reduce.
• It will assist in reducing emissions and hence enabling us to achieve our INDCs.
• It will encourage the manufacturers to invest into Research & Development and to manufacture such cells in India. 

Source: NITI