The full Advanced Chemistry Cell (ACC) capacity allocated under the second tranche of the Production Linked Incentive (PLI) plan has been awarded to oil giant Reliance Industries Limited (RIL). In a statement released to the public, the Ministry of Heavy Industries (MHI) stated that the “Quality and Cost-Based Selection (QCBS) mechanism” was used for the award.
With a maximum budgetary spending of Rs 3,620 crore, RIL now has the largest capacity among all other segment participants in the PLI program, having added 10 GWh (gigawatt hour) of ACC capacity under the current phase.
The 50 GWh ACC PLI was introduced by the Center in 2021 at a cost of Rs 18,100 crore. 5 GWh were acquired by RIL’s subsidiary Reliance New Energy Solar Limited in the first round of auctions in 2022.
In Jamnagar, RIL is now building a 30 GWh yearly advanced chemistry-based battery manufacturing facility. At the 47th annual general meeting (AGM) of the business, RIL Chairman Mukesh Ambani stated that production is anticipated to start in the second half of 2019.
PLI allocation helps Reliance achieve its objective of switching to green energy by concentrating on battery manufacture and energy storage solutions, while also supporting its attempts to increase output to satisfy both local and international demand.
Seven businesses submitted bids to the MHI for the production of 10 GWh of ACC: Waaree Energies, JSW Neo Energy, Reliance Industries, ACME Cleantech Solutions, Amara Raja Advanced Cell Technologies, and Anvi Power Industries. These companies bid a total of 70 GWh of capacity. In compliance with the Request for Proposal (RFP) specifications, six businesses were selected for the financial evaluation phase following an assessment of all seven bids.
The bidders were rated according to their combined technical and financial ratings in the final evaluation, which was carried out using the QCBS mechanism. The highest-ranked bidder, RIL, was given the 10 GWh PLI ACC capacity by the MHI. Based on their ranks, the five shortlisted bidders who remained were added to a waiting list. Waaree Energies, JSW Neo Energy, ACME Cleantech Solutions, Amara Raja Advanced Cell Technologies, and Lucas TVS are the bidders on the waitlist, in that order. In the event that RIL refuses to implement or does not proceed, these players will be granted capacity.
Under the “National Programme on Advanced Chemistry Cell Battery Storage,” which the government approved in May 2021, the technology-neutral PLI scheme aims to produce 50 GWh of ACC at a cost of Rs 18,100 crore. In March 2022, the ACC PLI first round of bidding came to an end, and four companies were given a total of 50 GWh of capacity. In July 2022, the program agreements were signed with the chosen companies.
After Hyundai Motor Company made it clear that Hyundai Global Motors was not permitted to use its trademark, the allocation for Hyundai Global Motors was canceled, making the 20 GWh capacity available. In the 50 GWh auction, Rajesh Exports and Reliance New Energy Solar each won 5 GWh, while Hyundai Global Motors and Ola Electric were initially given 20 GWh apiece.
First Published: Sep 04 2024 | 7:36 PM IST