National Programme on Advanced Chemistry Cell Battery Storage
Source : PIB
GS III : Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment

Why in News ?

Cabinet approvesProduction Linked Incentive scheme National Programme on Advanced Chemistry Cell Battery Storage.

Key Facts

• It aims to achieving manufacturing capacity of Fifty (50) Giga Watt Hour (GWh) of ACC and 5 GWh of Niche ACC with an outlay of Rs.18,100 crore.
  • It is expected that the dominant battery technologies will control some of the world’s largest growth sectors.
  • ACC battery Storage manufacturers will be selected through a transparent competitive bidding process.
• All the demand of the ACCs is currently being met through imports in India.
• ACCs are the new generation of advanced storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required.
• The consumer electronics, electric vehicles, advanced electricity grids, solar rooftop etc. which are major battery consuming sectors are expected to achieve robust growth in the coming years.

The goal is to create global manufacturing champions in the country and attract firms exploring a China-plus-one strategy for production.

National Programme on Advanced Chemistry Cell

• It will reduce import dependence.
• It will also support the Atmanirbhar Bharat initiative.
• The manufacturing facility would have to be commissioned within a period of two years.
• The incentive will be disbursed thereafter over a period of five years.
  • The incentive amount will increase with increased specific energy density & cycles and increased local value addition.
• ACC manufacturing facility
  • Each selected ACC battery Storage manufacturer would have to commit to set-up an ACC manufacturing facility of minimum five (5) GWh capacity
  • Ensure a minimum 60% domestic value addition at the Project level within five years.
  • The beneficiary firms have to achieve a domestic value addition of atleast 25%
  • It should incur the mandatory investment Rs.225 crore /GWh within 2 Years
    • Also raise it to 60% domestic value addition within 5 Years either at Mother Unit, in-case of an Integrated Unit, or at the Project Level, in-case of Hub & Spoke structure.
  • Expected Outcomes
    • Direct investment of around Rs.45,000 crore in ACC Battery storage manufacturing projects.
    • Facilitate demand creation for battery storage in India.
    • Facilitate Make-ln-lndia: Greater emphasis upon domestic value-capture and therefore reduction in import dependence.
    • Net savings of Indian Rs. 2,00,000 crore to Rs.2,50,000 crore on account of oil import bill reduction during the period of this Programme as Electric Vehicle adoption.
    • Will facilitate demand for EV.
    • Import substitution of around Rs.20,000 crore every year.
    • Promote newer and niche cell technologies.

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