The Central Govt. is planning to bring another Production Linked Incentive (PLI) plan for more advanced EV battery technology. The objective is to promote research on new technologies and developments. The scheme is planned to be announced in a fortnight, and it is anticipated to go into effect by December of this year.
According to ETAuto, the policy-making body is in talks with at least six corporations over the expansion of the ACC PLI Scheme. The program will go for technology players that were turned away from the ACC PLI Scheme. Additionally, it will concentrate on cutting-edge technologies like solid-state battery technology that might hit the market in five years or later.
“We want to target those technologies which couldn’t be part of the ACC PLI, including those which haven’t been commercialized at GWh level yet,” Randheer Singh, Director — Electric Mobility, NITI Aayog
The new plan is not anticipated to have any minimum investment requirements, in contrast to the current PLI scheme, to support startups and businesses with limited resources.
The new production-linked incentive (PLI) scheme for advanced EV battery technology, which had a budget of roughly INR 26,000 crore for the automotive industry, was approved by the Union Cabinet in September 2021 with the goals of fostering domestic manufacturing and generating employment.
The Union Government said in March of this year that the PLI Scheme for Automobile and Auto Components had been effective in luring a projected investment of INR 74,850 crore against the target estimate of INR 42,500 crore over five years. The program began in FY 22–23 and has a 26,000 crore rupee outlay.
The program is divided into two categories.
The Champion OEM Incentive Scheme: It applies to battery electric and hydrogen fuel cell vehicles of all segments.
The Component Champion Incentive Scheme: It is for advanced automotive technology components of vehicles, completely knocked down (CKD)/semi knocked down (SKD) kits, vehicle aggregates of 2-wheelers and 3-wheelers, passenger vehicles, commercial vehicles, and tractors, among other things.
The PLI program was established to aid the automotive sector in overcoming cost challenges, achieving economies of scale, and developing a strong supply chain for Advanced Automotive Technologies (AAT). Along with creating jobs, the program will help the industry advance up the value chain and into more value-added products. Additionally, it would offer a bonus of up to 18% to incentivize businesses to make new investments in the domestic AAT product supply chain.
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