India on Wednesday approved a production linked incentive (PLI) scheme with an outlay of ₹18,000 crore to promote manufacturing, export and storage of lithium-ion cells, essential for developing electric vehicles. Mint explains the potential benefits.
How will this scheme function?
Through this scheme the Union government aims to install manufacturing capacity of 50 gigawatt hour (GWh) of Advanced Chemistry Cells (ACC) and 5GWh capacity of “Niche” ACC. ACCs are essentially lithium-ion cells.
Manufacturers would have to commit to set up a manufacturing facility of minimum capacity of 5GWh and ensure a minimum 60% domestic value addition within five years.
