No battery incentives have been distributed yet. Govt to review the scheme

Copyright © HT Digital Streams Limit all rights reserved. The Pli-Auto scheme, a package of £ 25.938 for zero-emission vehicles and their parts, also has a strict mandate of 50% localization. (Bloomberg) Summary The government has only managed to secure manufacturers for 40 GWH of the targeted 50 GWH, with the remaining capacity to be allocated. There has been no payout of funds yet. New Delhi: With no payout of the production incentive scheme of £ 18,100 crore in four years since the Cabinet approval, the Heavy Industries Ministry will revise the scheme to determine a road map ahead, secure investment and use the use of batteries, according to the two officials aware of the development. Under the scheme, MHI planned to grant incentives for the development of 50 gigawatts (GWH) of the storage capacity to interested battery makers to ensure that indigenous batteries were made by the end of 2029. But the government has only managed to secure manufacturers for 40 GWH, with the remaining capacity not yet allocated. There has been no payout of funds yet. ‘There was very little traction in the ACC PLI. The ability that has developed is also very few. With that in mind, a review of the scheme will be, “one of the officials quoted above and asked Anonymity. The review can focus on why the scheme did not leave and discuss whether any amendments to the scheme are needed, the official said. Inquiries by e -mail to the Ministry of Heavy Industries sent on August 14 remained unanswered. Heavy industries minister, HD Kumaraswamy, told Mint in June that 1.4 GWH capacity was installed by Ola Cell Technologies Pvt Ltd, and that more than 10 beneficiary companies that are not PLI have started working to install about 100 GWH battery capacity. The development of indigenous batteries is crucial, as India’s increasing electric vehicle adoption deepens the country’s dependence on Chinese batteries. China’s footprint in theglobal EV industry is difficult to ignore. It is the largest manufacturer of EV batteries in the world-a component that accounts for about 40-50% of the cost of the vehicle. India has not yet started high-performance lithium-ion cells from which EV batteries are made. However, most car manufacturers mount imported cells to form battery packs. Under the battery pli scheme, three companies received a total capacity of 40 GWH, with Ola Electric in Bengaluru with 20 GWH, Reliance Industries Ltd with 15 GWH, and Rajesh exports with 5 GWH. OLA Electric chairman and managing director Bhishavish Aggarwal said in a earnings call in July that the company was talking to the government to “recharge” the timelines in the battery Pli scheme. Earlier, the government fined all three companies under the scheme for delays in complying with milestones of December 2024 of investment in manufacturing cells. The fines, which would be cut from the incentives to be given to these businesses, are likely to amount to about £ 100 crore, Aggarwal said on July 14. According to the Central Government EV adoption schemes, such as the £ 10,900 Crore PM E-drive scheme and the PLI scheme for cars and auto parts (pli-auto), manufacturers must accept strict localization criteria to receive incentives for manufacturing. Localization refers to the part of the components and raw materials obtained within India. But these requirements call for battery packs to be compiled in India. For example, the phased manufacturing program (PMP) for electric vehicles under the PM e-drive scheme, which enrolls the components allowed manufacturers, creates an ecosystem where car manufacturers are not needed to make the cell in India. “This is because the Indian industry is not currently equipped to do so,” the official quoted above. “The PMP is something that can be modified according to the development in the industry.” The Pli-Auto scheme, a package of £ 25.938 for zero-emission vehicles and their parts, also has a strict mandate of 50% localization. In June and July, the Ministry of Heavy Industries also checked this scheme. Only 17 of the 82 shortlisted businesses obtained the necessary approvals for their products, said officials who are aware of the development said. “After the review, MHI also sought answers from the companies that have been shortened under the Pli-Auto scheme, but have not yet obtained approvals for their products,” the second official said, and also asked anonymity. India’s efforts to manufacture batteries have also found a place in Premier Narendra Modi’s Independence Day speech, where he asked the private industry to develop indigenous electric vehicles. Catch all the car news and updates on live currency. Download the Mint News app to get daily market updates and live business news. More topics #india #auto #evs #ola electric mobility Read next story