Govt of India launches PLI scheme, BHEL geared up to capitalise emerging opportunities

New Delhi: On 12th May 2021, the Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the proposal of the Department of Heavy Industry (DHI) for implementation of the Production Linked Incentive (PLI) Scheme 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ for 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. The scheme is covered under the Atmanirbhar Bharat Mission.

 

 

With the country’s growing need for energy storage, this scheme will facilitate the achievement of self-reliance in the production of long-lasting, efficient, efficient and quick charging batteries for use in electric vehicles, power systems (energy storage & grid balancing), consumer electrical & electronic goods, Railways, Shipping, substitute to diesel generators, use in rooftop solar for energy storage that can be utilized during night time, PM?Kusum, Solar cooker, etc.

 

The salient features, expected benefits/outcomes of this scheme are:

1. • Expected Direct Investment (Foreign/Domestic) of around Rs.45,000 Crore.
2. • Minimum plant capacity of 5 GWh
3. • Mandatory Investment of Rs.225 Crore/GWh and 25% domestic value addition within 2 years.
4. • Emphasis on high domestic value addition (60% within 5 years) to reduce imports which is currently ~ Rs.20,000 Crore p.a. for battery and battery components.
5. • Disbursement of PLI over 5 years.
6. • Higher incentive for higher specific energy density, cycle life battery cells & value addition.
7. • ACC battery manufacturers to be selected through a transparent competitive bidding process; 5% provision for start-ups to encourage entrepreneurs. 
8. • Facilitate demand creation for EVs and battery storage in India.
9. • Separate window (5 GWh) for newer and niche cell technology giving impetus to R&D work in the field.

 

 

Bharat Heavy Electricals Limited (BHEL), a 4 billion USD corporation, under DHI, is one of India's largest engineering and manufacturing organisations. It has 16 state-of-the-art manufacturing units spread across India with a land bank of over 14,000 acres, almost 20 million square feet of industrial covered space, employee strength of over 32,000 employees (including 10,000 engineers with qualifications & experience in cutting edge technologies), and has been synonymous with the growth of India for the past 55 years. The company operates in a wide range of sectors like Power Generation (Thermal, Hydro, Nuclear, Gas) & Distribution, Transportation, Defence & Aerospace, etc. 

 

 

BHEL is one of the largest spenders on R&D in Indian engineering sector and has 14 Centres of Excellence and 5 specialised research institutes apart from collaborations with various research and educational institutes of eminence.

 

 

BHEL has been supplying batteries for India's space program for over 15 years and has recently set up a Li-ion cell manufacturing facility for meeting the requirements for this space program. 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. To meet the upcoming demand and contribute to GoI’s Atmanirbhar Bharat Mission, BHEL is keen to participate in this Gol’s program for the establishment of Giga factories for the manufacture of Advanced Chemistry Cells, in India. We are exploring possibilities of partnering with leading global OEMs of ACCs for setting up one such factory under the Gol program and leverage our engineering and manufacturing experience, strategically located facilities, and capabilities. A dedicated Make in India (MII) group is already functional within BHEL to steer and explore such opportunities.