Hyundai Motor Company and Ola Electric are now required to set up the manufacturing facility within a period of two years, as the incentive will be disbursed thereafter over a period of five years on the sale of batteries manufactured in India.
The incentive will be disbursed over five years on the sale of batteries manufactured in India.
In January 2022, the Ministry of Heavy Industries announced that a total of 115 automobile and automobile-related ancillary companies filed for the Production Linked Incentive (PLI) Scheme in India to receive incentives under the ₹ 18,100 crore program, to boost local battery cell production. Among these, Hyundai Global Motor Company Limited and Ola Electric Mobility Private Limited along with Reliance New Energy Solar Limited and Rajesh Exports Limited have been selected and allotted 20 GWh, 20 GWh, 5 GWh, and 5 GWh respectively. Mahindra is in the waitlisted category and has requested 15 GWh.
Also Read: 115 Automotive Companies Apply For PLI Scheme: Ministry Of Heavy Industries
Mahendra Nath Pandey, Union Cabinet Minister for Heavy Industries said, “Today, the increase in demand for EVs due to a favourable regulatory framework has mainly attracted investment in this sector. Today big companies are investing in electric vehicle manufacturing in India and are interested to join us. We should give them more encouragement and keep trying to make India a manufacturing hub. Growth in EV segment of the auto industry will definitely help us to achieve India’s commitment to Panchatantra given by Hon’ble PM Modi Ji in COP 26 and will provide huge employment opportunities to Indian youth.”
Also Read: Reliance, Ola Electric, Mahindra Bid For Incentives Under India’s $2.4 Billion Battery Scheme
PLI Scheme for ACC Battery Storage under @MHI_GoI
: Four companies selected under the scheme for incentives to the tune of ₹ 18,100 crore. #AutoPLI #ACCPLI
Read More: https://t.co/3Rjk8AIyTk pic.twitter.com/VO941GjRMg
— PIBHeavyIndustry (@hipepib) March 24, 2022
Also Read: Electric Two-Wheeler Makers Welcome PLI Scheme For Auto Sector
The scheme was open for applications till 11 am on January 14 while the technical bids were opened on January 15. The selected firms are now required to set up the manufacturing facility within a period of two years, as the incentives will be disbursed thereafter over a period of five years on the sale of batteries manufactured in India. The ACC PLI scheme is expected to result in savings to the nation on account of reduction in import of crude oil to a significant extent and increase the share of renewable energy at the national grid level.
Also Read: Government Of India Reveals Tesla Hasn’t Applied For PLI Scheme
The scheme for ACC along with the PLI scheme for the automotive sector and FAME will enable India to leapfrog to an environmentally cleaner, sustainable, advanced, and more efficient electric vehicles (EV) based system.
For the latest auto news and reviews, follow carandbike.com on Twitter, Facebook, and subscribe to our YouTube channel.