Tender to Set Up 50 GWh of ACC for Energy Storage Receives Massive Response

Ten companies quoted a total capacity of 130 GWh and oversubscribed the tender by 2.6 times


The Ministry of Heavy Industries’ (MHI) tender to select manufacturers for setting up production capacities for at least 50 GWh of advanced chemistry cell (ACC) for energy storage under the production-linked incentive (PLI) program was oversubscribed by 2.6 times with 130 GWh capacity.

A total of ten companies, including Reliance New Energy Solar, Hyundai Global Motors, Ola Electric Mobility, Lucas-TVS, Mahindra & Mahindra, Amara Raja Batteries, Exide Industries, Rajesh Exports, Larsen & Toubro, and India Power Corporation, submitted their bids for the tender.

List of Bidders for Ministry for Heavy Industries' Tender to Set Up Manufacturing Capacity of Advanced Chemistry Cells for Energy Storage Under the Production Linked Incentive Program

The Ministry informed that the manufacturing facilities must be set up within two years. It would disburse the incentive after the facilities were set up over five years on the sale of the batteries.

In June 2021, the Department of Heavy Industry issued a notification for the PLI program ‘National program on ACC battery storage’ to implement ACC manufacturing facilities for electric vehicles (EVs). The department allocated a total of ₹181 billion (~$2.47 billion) as the program’s total incentive payout for five years.

The PLI program aims to boost domestic manufacturing, facilitate battery storage demand for EVs and stationary storage, develop a complete domestic supply chain and encourage foreign direct investment. The program would also help India reduce its import of crude oil significantly and enhance the share of renewable energy at the national grid level.

The PLI program for ACC along with the already launched PLI program of ₹259.38 billion (~$3.49 billion) for the automotive sector and Faster Adaption of Manufacturing of Electric Vehicles (FAME) program with a budgetary outlay of ₹100 billion (~$1.34 billion) would enable India to move towards environmentally friendly, advanced, and sustainable EV-based transportation.

In October 2021, Bharat Heavy Electricals invited bids to select partners to set up a gigawatt-scale ACC battery storage facility through a special purpose vehicle (SPV) under the Government of India’s PLI program.

Mercom had earlier reported that the central government approved the PLI program for ten critical sectors to enhance India’s manufacturing capabilities and exports under the Atmanirbhar Bharat (self-reliant India) initiative.