Ministry of Heavy Industries Initiates Re-Bidding for 10 GWh ACC Manufacturing under PLI Scheme

The Ministry of Heavy Industries (MHI) has initiated a re-bidding process for the Production Linked Incentives (PLI) scheme dedicated to 10 Giga Watt-hour (GWh) Advanced Chemistry Cell (ACC) manufacturing. The announcement, made on January 24, 2024, invites potential applicants to submit bids for establishing domestic ACC manufacturing facilities, thus making them eligible for incentives under the PLI ACC scheme. The transparent two-stage bidding process will utilize the Quality and Cost Based Selection (QCBS) mechanism through the CPP Portal.

Commencing from January 24, 2024, the tender documents are available for interested parties, with a pre-bid conference scheduled for February 12, 2024. The bid submission deadline is April 22, 2024, and bids will be opened on April 23, 2024.

MHI is dedicated to fostering the development and growth of three key sectors—Capital Goods, Automobile, and Heavy Electrical Equipment—within the country. The government, through MHI, aims to facilitate clean and green public transport via the Faster Adoption and Manufacturing Electric Vehicles (FAME-II) scheme, addressing fossil fuel dependence and vehicular emissions. Additionally, the PLI Auto and Auto components scheme supports the enhancement of India’s manufacturing capabilities and exports in the automobile sector, focusing on deep localization, economies of scale, and a robust supply chain for Advanced Automotive Technology (AAT) products.

Dr. Mahendra Nath Pandey, Union Minister of Heavy Industries, emphasized MHI’s commitment to supporting India’s manufacturing capabilities and exports in the automobile and automobile components sector. He highlighted the ministry’s dedication to Prime Minister Shri Narendra Modi’s vision of a self-reliant and developed India, aligned with the goal of achieving net-zero emissions by 2070.

The PLI Scheme on ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ was approved by the Cabinet in May 2021, aiming for a manufacturing capacity of Fifty GWh of ACC with an outlay of Rs.18,100 Crore. The first round of ACC PLI bidding concluded in March 2022, allocating a total capacity of Thirty GWh to three companies. The program agreements with selected companies were signed in July 2022. The recent Request for Proposal (RfP) released by MHI seeks shortlisting and selection of bidders under the PLI Scheme for setting up Battery Manufacturing Units with a total capacity of 10 GWh and a budgetary outlay of Rs.3,620 Crore.