Reliance, Ola Electric, Mahindra Bid for Incentives Under India's $2.4-Billion Battery Scheme

India wants to establish a total of 50GWh of battery storage capacity over five years.

Reliance, Ola Electric, Mahindra Bid for Incentives Under India's $2.4-Billion Battery Scheme

Reliance has submitted bids under the country's $2.4 billion (roughly Rs. 17,800 crore) battery scheme

Highlights
  • India wants to establish 50Gwh of battery storage capacity
  • Companies must set up at least 5Gwh of storage capacity
  • Ten companies have submitted bids totalling about 130Gwh

Reliance Industries, SoftBank Group-backed Ola Electric, and automaker Mahindra & Mahindra have submitted bids under the country's $2.4 billion (roughly Rs. 17,800 crore) battery scheme, the government said on Saturday.

India last year finalised an incentive programme to encourage companies to invest in the local manufacturing of batteries as it looks to establish a domestic supply chain for clean transport and build storage for renewable energy.

Hyundai Global Motors, engineering conglomerate Larsen & Toubro, and battery makers Amara Raja and Exide have also submitted bids, the Ministry of Heavy Industries said.

"The programme envisages an investment which will boost domestic manufacturing ... and foreign direct investment in the country," the ministry said.

India wants to establish a total of 50 gigawatt hours (50Gwh) of battery storage capacity over five years, which it expects will attract direct investment of about $6 billion (roughly Rs. 44,610 crore).

To qualify for the incentives, companies must set up at least 5Gwh of storage capacity and meet certain local content conditions, all of which would require a minimum investment of more than $850 million (roughly Rs. 6,320 crore).

Ten companies have submitted bids totalling about 130Gwh, the ministry said.

India was also encouraging global companies such as Tesla, Samsung, LG Energy, Northvolt, and Panasonic to invest.

Clean auto technology is a key part of India's strategy for cutting pollution in major cities and reducing oil dependence. But electric vehicles (EVs) currently make up a fraction of total sales in the country mainly due to their high price as batteries are imported.

The South Asian country wants electric cars to make up 30 percent of private car sales by 2030 and for electric motorcycles and scooters to make up 40 percent of such sales, driving demand for batteries which currently contribute about 35 percent to 40 percent of the total vehicle cost.

© Thomson Reuters 2022


Why are Galaxy S21 FE and OnePlus 9RT launching now? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Comments

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

OnePlus 9RT Goes on Sale in India With Snapdragon 888 SoC, 50-Megapixel Triple Cameras for the First Time
WhatsApp for Android to Get New Drawing Tools, Desktop App to Get New Colour Scheme: Report
Read in: हिंदी
Share on Facebook Tweet Snapchat Share Reddit Comment
 
 

Advertisement

Advertisement

© Copyright Red Pixels Ventures Limited 2022. All rights reserved.