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BW Businessworld

EV Players Welcome PLI Scheme For Batteries

Union Minister Prakash Javadekar says PLI scheme will not only decrease India’s import dependence but would also boost local manufacturing.

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With the Delhi government on 12th May approving the Production Linked Incentive (PLI) scheme for manufacturing advanced chemistry cell (ACC) battery at an estimated outlay of Rs. 18,100 crore, numerous EV industry players, while welcoming the move, anticipates that the new incentive will help in bringing down the cost of electrical vehicles. Many companies are also of the view that it would strengthen the EV industry’s 'Make in India initiative' and also attract huge investments in the EV industry in the next 1-2 years. 

Naveen Munjal, MD, Hero Electric affirms, “The industry has already begun localization of manufacturing EVs, components and this incentive will have a long-term effect in bringing down over all costs of an EV.  The production of batteries locally will help in making India a hub for global demand leading to investments and propagate production of EVs."  

While announcing the PLI scheme, Prakash Javadekar, the Minister of Environment, Forest and Climate Change; Information and Broadcasting; and Heavy Industries and Public Enterprises, said that the country currently imports battery equipment worth Rs. 20,000 crore a year. The PLI scheme will not only decrease India’s import dependence but would also boost local manufacturing.  With the objective to promote the Make in India initiative, the government expects that the National Programme on Advanced Chemistry Cell (ACC) Battery Storage is expected to attract foreign and domestic investment of Rs. 45,000 crore. 

While lauding the move, Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles (SMEV) noted, “Battery occupies a larger portion of any Electric Vehicle's cost .Thus the right policy move will help us steer towards green growth in the industry, while exponentially increasing our manufacturing capacity. Once we fully start battery manufacturing operations in the country, it will lead to the reduction of cost on purchase of electric vehicles owing to increased accessibility.” 

Seconding his thoughts, Chetan Mani, Co-Founder, Vice Chairman at SUN Mobility opined that the PLI scheme is much needed and will help accelerate battery manufacturing in the country and EV adoption by further lowering battery costs. “Look forward to the details of the policy and how this industry can effective implement it,” stated Maini.