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DAILY NEWS ANALYSIS

  • 19 September, 2022

  • 6 Min Read

National Programme on Advanced Chemistry Cell (ACC)

National Programme on Advanced Chemistry Cell (ACC) Energy Storage

Recently, NITI Aayog presented a report on the current status and future trends in the ACC battery sector.

About

  • The report emphasizes the potential role of the Production Linked Incentive (PLI) scheme on ACC energy storage in creating domestic economic value.
  • The policies and incentives recommended in this report could pave the way for top-level battery manufacturers to invest in India.

National Programme on Advanced Chemistry Cell (ACC) Energy Storage

  • Nodal Ministry: the Ministry of Heavy Industries & Public Enterprises, Government of India
  • Budget allocation: Rs. 18,100 crores
  • Target: Manufacturing capacity of 50 GigaWattHour (GWh) of ACC and 5 GWh of niche ACC.

Key Features:

  • The cash subsidy will be offered on output, i.e. the volume of cells manufactured and sold by the beneficiaries.
  • Technology agnostic initiative - only cells with higher performance specifications (i.e., Energy Density & Cycle Life) will be eligible to avail of the incentives.
  • There is an optimal sharing of risk between the beneficiary firm and the Government and thus will bolster investors’ confidence.

Benefits:

  • Direct investment of around Rs. 45000 crore in ACC Battery storage manufacturing projects.
  • It will give a boost to the Make in India Programme and attract global investments into the setting-up of ‘Gigafactories’ here.
  • Promoting newer and niche cell technologies.
  • The manufacturing of ACCs will facilitate the production and use of Electric Vehicles.
  • Import substitution of around Rs.20,000 crore every year.
  • Exploitation of non-renewable resources and dependency on oil imports will reduce.
  • It will assist in reducing emissions and hence enabling us to achieve our INDCs.
  • It will encourage the manufacturers to invest into Research & Development and to manufacture such cells in India.

Source: PIB


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