Lok Sabha Question No. 204 (UNSTARRED), answered on 2023-07-20
Subject: Production of Electric Batteries
Ministry: POWER
Asked by: Su Thirunavukkarasar, Ravneet Singh

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.204 ANSWERED ON 20.07.2023

## PRODUCTION OF ELECTRIC BATTERIES

204.   SHRI THIRUNAVUKKARASAR SU: SHRI RAVNEET SINGH BITTU:

Will the Minister of POWER be pleased to state:

- (a) whether  production  of  electric  batteries  in  the  country  still  remains stagnant;
- (b) if so, the details thereof;
- (c) whether the Government has proposed a billion dollar subsidy to support domestic  production  of  electric  batteries  and  to  reduce  the  dependence  on Chinese imports;
- (d) if so, the details thereof;
- (e) whether the Government has fixed any timeline for implementation of this programme and if so, the details thereof; and
- (f) whether this proposed subsidy programme would help in the country's shift towards clean energy and if so, the details thereof?

## A N S W E R

THE MINISTER OF POWER AND NEW & RENEWABLE ENERGY

(SHRI R.K. SINGH)

(a) to (d) :   At present, mainly Lead-Acid batteries are produced by most of the battery manufacturers in India. However, there is a need to establish facilities for  production  of  Advanced  Chemistry  Cell  batteries  which  have  superior characteristics that  have  wide  range of  applications, as  in Electric vehicles,

……….2.

Stationary  Storage  Systems,  etc.  To  reduce  the  cost  of  Advanced  Chemistry Cells  (ACC),  the  Government  on  12 th May  2021  approved  a  Production  Linked Incentive (PLI) Scheme for ACC Battery Storage. The Scheme notified on 9 th  June 2022 incentivises domestic manufacturing of ACC Battery Storage and setting up of manufacturing facilities in India. The Scheme envisages a total manufacturing capacity  of  50  Giga  Watt  Hour  (GWh)  with  5GWh  earmarked  for  niche  ACC technologies.  The  scheme  proposes  a  production  linked  subsidy  based  on  the applicable  subsidy  per  Kilo  Watt  Hour  (kWh)  and  percentage  of  value  addition achieved on the actual sales made by the manufacturers setting up production units.The Scheme has an approved outlay of Rs.18,100 crores for  disbursement of incentives over a period of 5 years.

The  Scheme  is  technology-agnostic  and  aims  to  attract  investment for  domestic  manufacturing  of  ACC  batteries  for  electric  vehicles,  stationary storage systems and various other applications. The Government of India intends to  provide  optimal  incentives  to  both  domestic  and  overseas  investors  to establish Giga-scale ACC manufacturing facilities in the country. The overarching objectives are to reduce import dependency, achieve Atmanirbharta and promote the export of ACC batteries.

(e) : The Scheme has a pre-defined fixed timeline. The initial two years, starting  from  01.01.2023  until  31.12.2024,  provide  gestation  time  for  setting  up Giga-scale ACC manufacturing facilities and commencement of production by the approved  beneficiaries.  Subsequently,  the  next  five  years  are  allocated  for  the production and sale of ACC, during which beneficiaries can claim disbursement of incentives provided under the scheme.  As of date, 30 GWh of the total approved ACC  manufacturing  capacity  of  50  GWh  has  been  allocated  and  the  projected incentive to be disbursed to the beneficiaries falls in the range of Rs. 1,550 to Rs. 1,700 per KWh.

(f) : The  Scheme  aims  to  benefit  the  country  in  its  drive  toward  clean energy by reducing usage of fossil fuels and associated emissions.

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