Lok Sabha Question No. 1916 (UNSTARRED), answered on 2025-03-11
Subject: Contribution of 10 GWh Capacity Project
Ministry: HEAVY INDUSTRIES
Asked by: Shri P P Chaudhary

## GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 1916

ANSWERED ON 11.03.2025

## CONTRIBUTION OF 10 GWh CAPACITY PROJECT

## 1916.  SHRI P P CHAUDHARY:

Will the Minister of HEAVY INDUSTRIES be pleased to state:

- (a)  the  specific  contribution  expected  from  the  10  GWh  capacity  project  in  meeting  India's battery manufacturing targets, along with its impact on reducing import dependence thereof;
- (b)  whether  any  assessment  has  been  conducted  regarding  the  project's  potential  impact  on domestic EV manufacturing costs and battery affordability, if so, the details thereof;
- (c)  whether  any  technology  transfer  and  localization  plans  have  been  established  under  this agreement, if so, the expected benefits for domestic component manufacturers thereof; and
- (d) whether any employment opportunities will be generated through this project, particularly in manufacturing and technical sectors, if so, the details thereof?

## ANSWER THE MINISTER OF STATE FOR HEAVY INDUSTRIES (SHRI BHUPATHIRAJU SRINIVASA VARMA)

(a) & (b): The  Ministry  of  Heavy  Industries  (MHI)  administers  a  Production  Linked Incentive  (PLI)  Scheme  namely  'National  Programme  on  Advanced  Chemistry  Cell  (ACC) Battery Storage'.  Under the scheme, the total outlay is ₹18,100 Crore for a capacity of 50 GWh for a period of 5 years after gestation period of 2 years.  A total of 40 GWh in two tranches has been allocated to four PLI beneficiaries.  Further, as per recommendation of EGoS in July 2024, MHI initiated the process for finalizing bid documents for balance 10 GWh capacity for Grid Scale  Stationary  Storage  (GSSS)  applications  in  consultation  with  Ministry  of  New  and Renewable Energy (MNRE). The details of the scheme may be seen at: https://heavyindustries.gov.in/pli-scheme-national-programme-advanced-chemistry-cell-accbattery-storage .  The objectives of the PLI ACC scheme are:

- i. Promoting indigenous manufacturing
- ii. Enhancing cost competitiveness
- iii. Boosting clean energy and sustainability
- iv. Encouraging investment and innovation
- v. Developing a robust supply chain and generating employment and economic growth.

By fostering local manufacturing, the scheme aims to decrease dependence on imported batteries, supporting the broader goal of self-reliance in the energy sector.  The PLI ACC scheme is end use agnostic as it caters to EV sector, defence, stationary storage and consumer electronics.

(c): Yes,  the  PLI  ACC  scheme  incentivizes  beneficiary  firms  for  technology  transfer  by considering it as an eligible investment and the scheme emphasizes achieving a value addition of at least 60% within five years from the appointed date which encourages technology transfer, Research and Development (R&D) and localization.  This focus is expected to benefit domestic cell  component  manufacturers  by  integrating  them  into  the  local  supply  chain,  developing technological advancements and reducing import dependence.

(d): Yes, the implementation of the PLI ACC scheme is projected to generate significant employment opportunities in manufacturing and technical sectors.  As intimated by PLI ACC beneficiaries,  809  nos.  of  persons  have  been  employed  for  30  GWh  ACC  capacity  till 31.01.2025.

******