pib releases 19-09-2022

Paper	Topics	Subject
GS-III	National Programme on Advanced Chemistry Cell (ACC)	S&T

GS-III : S&T

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National Programme on Advanced Chemistry Cell (ACC) Energy Storage

Recently, NITI Aayog presented a report on the current status and future trends in the ACC battery sector.

About

The report emphasizes the potential role of the Production Linked Incentive (PLI) scheme on ACC energy storage in creating domestic economic value.
The policies and incentives recommended in this report could pave the way for top-level battery manufacturers to invest in India.

National Programme on Advanced Chemistry Cell (ACC) Energy Storage

Nodal Ministry: the Ministry of Heavy Industries & Public Enterprises, Government of India
Budget allocation: Rs. 18,100 crores
Target: Manufacturing capacity of 50 GigaWattHour (GWh) of ACC and 5 GWh of niche ACC.

Key Features:

The cash subsidy will be offered on output, i.e. the volume of cells manufactured and sold by the beneficiaries.
Technology agnostic initiative - only cells with higher performance specifications (i.e., Energy Density & Cycle Life) will be eligible to avail of the incentives.
There is an optimal sharing of risk between the beneficiary firm and the Government and thus will bolster investors’ confidence.

Benefits:

Direct investment of around Rs. 45000 crore in ACC Battery storage manufacturing projects.
It will give a boost to the Make in India Programme and attract global investments into the setting-up of ‘Gigafactories’ here.
Promoting newer and niche cell technologies.
The manufacturing of ACCs will facilitate the production and use of Electric Vehicles.
Import substitution of around Rs.20,000 crore every year.
Exploitation of non-renewable resources and dependency on oil imports will reduce.
It will assist in reducing emissions and hence enabling us to achieve our INDCs.
It will encourage the manufacturers to invest into Research & Development and to manufacture such cells in India.