Govt initiates tender for ACC manufacturing facilities under PLI scheme

PLI ACC scheme was approved in May 2021, with a target ACC manufacturing capacity of 50 Giga Watt hours (GWh)

In a significant move towards bolstering domestic manufacturing capabilities, the Ministry of Heavy Industries (MHI) has opened a Global Tender for the establishment of giga-scale Advanced Chemistry Cell (ACC) manufacturing facilities. The cumulative capacity of these facilities is set to be an impressive 10 GWh, aligning with the Production Linked Incentive (PLI) ACC scheme.

The bidding process, designed for transparency, will take place online through a two-stage process under the Quality and Cost Based Selection (QCBS) mechanism via the CPP Portal. Tender documents are now available online, with the bid due date set for 22nd April 2024. The bids will be opened on 23rd April 2024.

The PLI ACC Scheme is geared towards promoting the manufacturing of technology-agnostic Advanced Chemistry Cells within India. This initiative comes as a key part of the government’s commitment to cleaner and greener public transport, aligning with schemes such as Faster Adoption and Manufacturing of Electric Vehicles (FAME-II).

Key Dates and Details:

  • Tender Documents Available: 24th January 2024
  • Pre-bid Conference: 12th February 2024
  • Bid Due Date: 22nd April 2024
  • Bids Opening: 23rd April 2024

Dr. Mahendra Nath Pandey, Union Minister of Heavy Industries, emphasised MHI’s commitment to supporting India’s manufacturing capabilities and exports, especially in the automotive and automobile component sector. He noted that these efforts align with Prime Minister Narendra Modi’s vision of a self-reliant (Atmanirbhar) and developed India (Viksit Bharat).

Expressing the government’s dedication to environmental-friendly manufacturing, Dr. Pandey highlighted the various schemes, including PLI-Auto, PLI – Advanced Chemistry Cell, and FAME-II, aimed at fostering advanced automotive technologies and reducing vehicular emissions.

The PLI Scheme on ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ was approved in May 2021, with a target manufacturing capacity of 50 Giga Watt hours (GWh) of ACC. The first round of ACC PLI bidding concluded in March 2022, allocating a total capacity of 30 GWh to three companies. The program agreement with the selected companies was signed in July 2022.

Furthermore, MHI has released a Request for Proposal (RfP) for shortlisting and selecting bidders under the PLI Scheme for setting up Battery Manufacturing Units. The total manufacturing capacity targeted is 10 GWh, with a maximum budgetary outlay of Rs.3,620 crore.

This initiative underscores India’s commitment to advancing technology and manufacturing capabilities in the energy storage sector, paving the way for a more sustainable and self-reliant future.