Govt plans 50-GW battery manufacturing base in India; Cabinet may take up proposal in a week

New Delhi: The Centre is planning to set up 50-GW battery manufacturing in India to achieve 30% electric vehicles by 2030 target. Earlier the proposal was to set up 40-GW battery manufacturing base in India but it has now been scalled up to 50GW. A proposal on the same has already been sent to the Cabinet, the Economic Times reported.

Soon, the government is likely to issue tenders inviting companies to set up 50-GW battery manufacturing base in India at $50 billion investment with attractive financial incentives, the ET report mentioned adding that the Cabinet is likely to take up the proposal in a week.Volume 0% 

Subsidies that could be offered by the government to companies setting up a plant includes minimum alternative tax at 50% the current rate and import and export duty waivers or cuts for eight years, a senior government official told the publication. 

According to the final plan, Niti Aayog will seek proposals from states to identify locations for plants and on providing duty waivers and exemptions to the battery manufacturers. The states will be asked to reduce state GST, facilitate land acquisition, provide concessional electricity, single-window clearance and environmental clearance.

Once the best proposals are identified, the government think tank will invite bids from companies to set up the plants at identified locations. This is probably the first time Niti Aayog is executing a tendering process of this magnitude as it has always been involved in the planning stage, the publication mentioned.

“The draft Cabinet note has been prepared and sent,” the ET report quoted the government official as saying. “The timelines are likely to be very stringent. Niti Aayog will have to conclude the bidding in six months from Cabinet approval. As per the proposal, the companies will have to set up the manufacturing facilities by 2022, after which they will get the incentives for eight years till 2030. This clause is being pushed to ensure early setting up of the manufacturing base. A minimum of five locations and maximum of 20 are likely to be identified,” the official said.

Currently, Indian companies import batteries and battery cells from countries like China and the US. So large-scale battery manufacturing facility will make the production of EVs cost-effective in India. 

With plans to add 175 GW renewable energy generation capacity by 2022 and shift 30% fleet to electric vehicles by 2030, the demand for battery storage is expected to be at 300 GW.


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