Production Linked Incentive scheme “National Programme on Advanced Chemistry Cell Battery Storage”

• The Cabinet has approved the proposal of the Department of Heavy Industry for the 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.
• Advanced Chemistry Cell (ACCs) are the new generation of advanced storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required.
• The 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.
• While several companies have already started investing in battery packs, though the capacities of these facilities are too small when compared to global averages, but there still is negligible investment in manufacturing, along with value addition, of ACCs in India.
• ACC battery Storage manufacturers will be selected through a transparent competitive bidding process. The manufacturing facility would have to be commissioned within a period of two years. The incentive will be disbursed thereafter over a period of five years.
• Each selected ACC battery Storage manufacturer would have to commit to set-up an ACC manufacturing facility of minimum five (5) GWh capacity and ensure a minimum 60% domestic value addition at the Project level within five years.

Benefits

• All the demand of the ACCs is currently being met through imports in India. The National Programme on Advanced Chemistry Cell (ACC) Battery Storage will reduce import dependence.
• It will also support the Atmanirbhar Bharat initiative.

The outcomes/ benefits expected from the scheme are as follows:

• Setup a cumulative 50 GWh of ACC manufacturing facilities in India under the Programme.
• Direct investment of around Rs.45,000 crore in ACC Battery storage manufacturing projects.
• Facilitate demand creation for battery storage in India.
• Facilitate Make-ln-lndia: Greater emphasis upon domestic value-capture and therefore reduction in import dependence.
• Net savings of Indian Rs. 2,00,000 crore to Rs.2,50,000 crore on account of oil import bill reduction during the period of this Programme due to EV adoption as ACCs manufactured under the Programme is expected to accelerate EV adoption.
• The manufacturing of ACCs will facilitate demand for EVs, which are proven to be significantly less polluting. As India pursues an ambitious renewable energy agenda, the ACC program will be a key contributing factor to reduce India's Green House Gas (GHG) emissions which will be in line with India's commitment to combat climate change.
• Import substitution of around Rs.20,000 crore every year.
• Impetus to Research & Development to achieve higher specific energy density and cycles in ACC.
• Promote newer and niche cell technologies.

1.5 Lakh units of Oxycare Systems to be procured through PM CARES

Background:

• In India, the spread of coronavirus has been increasing and is posing serious challenges for the health and economic security of millions of people.
• There have been calls for citizen donations to support the government in the wake of this emergency with people from all walks of life expressing their desire to donate to India’s war against COVID-19.

Details:

• Catering to the need for having a dedicated national fund with the primary objective of dealing with any kind of emergency or distress situation, and providing relief to the affected, a new fund has been set up.
• The fund will be a public charitable trust under the name of the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund).
• Prime Minister is the Chairman of this trust and its Members include Defence Minister, Home Minister and Finance Minister.
• The new fund will not only cater to the immediate crisis posed by COVID-19 but also similar distressing situations if they occur in the future.
• PM-Cares Fund accepts micro-donations too.

Contribution to PM - CARES Fund will Qualify as CSR Expenditure

• The Ministry of Corporate Affairs has clarified that contributions by companies towards the PM-CARES Fund will count towards mandatory Corporate Social Responsibility (CSR) expenditure.
• Under the Companies Act, 2013, companies with a minimum net worth of Rs 500 crore or turnover of Rs 1,000 crore, or net profit of Rs 5 crore are required to spend at least 2% of their average profit for the previous three years on CSR activities every year.
• The term "Corporate Social Responsibility" in general can be referred to as a corporate initiative to assess and take responsibility for the company's effects on the environment and impact on social welfare.

Existing Similar Fund: Prime Minister’s National Relief Fund (PMNRF)

• This fund was instituted in 1948 by then Prime Minister Jawaharlal Nehru, to assist displaced persons from Pakistan. The fund is currently used primarily to tackle natural calamities like floods, cyclones and earthquakes. The fund is also used to help with medical treatment like kidney transplantation, cancer treatment and acid attack.
• The fund consists entirely of public contributions and does not get any budgetary support. It accepts voluntary contributions from Individuals, Organizations, Trusts, Companies and Institutions etc.
• The corpus of the fund is also invested in various forms with scheduled commercial banks and other agencies. Disbursements are made with the approval of the Prime Minister.
• The fund is recognized as a Trust under the Income Tax Act and the same is managed by the Prime Minister or multiple delegates for national causes.
• Contributions towards PMNRF are notified for 100% deduction from taxable income under section 80(G) of the Income Tax Act, 1961.

What is the news?

• 1.5 Lakh units of Oxycare Systems to be procured through PM CARES
• PM-CARES Fund to procure 1,50,000 units of Oxycare System at a cost of Rs 322.5 Crore.
• Comprehensive system developed by DRDO to regulate oxygen being administrated to patients based on the sensed values of their SpO2 levels.
• DRDO has transferred the technology to multiple industries in India who will be producing the Oxycare Systems for use all across India.
• Oxycare system reduces the work load and exposure of healthcare providers by eliminating the need of routine measurement and manual adjustments of Oxygen flow.

Sovereign Gold Bonds

• This scheme is for those individuals who intend to purchase gold for investment.
• These bonds are issued by RBI on behalf of Govt on payment of Rs denominated in gms of Gold.
• The interest not fixed (unlike G-secs): given on the prevailing price of Gold.
• Like G-secs, they are backed by a Sovereign guarantee.

Gold Monetization Scheme, 2015

• The scheme was launched in November 2015 along with sovereign gold bonds and India gold coins.
• It facilitates the depositors of gold to earn interest on their metal accounts. Once the gold is deposited in a metal account, it starts earning interest on the same.
• Under the scheme, a depositor gets 2.25% interest annually for a short-term deposit of one year to three years. Medium- and long-term deposits get a 2.5% interest rate.
• Objective: To mobilize the gold held by households and institutions in the country to put this gold into productive use and in the long run to reduce the current account deficit by reducing the country’s reliance on imports of gold to meet the domestic demand.
• Along with GMS, a Sovereign Gold Bond Scheme (an alternative to purchasing metal gold) and the development of the Indian Gold Coin, were also announced.
• Banks may accept the deposit of gold at designated branches, especially from larger depositors.

Click here for the analysis of the Gold Monetization Scheme