PLI scheme for manufacturing of Advanced Chemistry Cell (ACC)

PLI scheme for manufacturing of Advanced Chemistry Cell (ACC)

Part of: Prelims and GS- III – Economy; Manufacturing sector

In News: The Union Cabinet has approved the proposal of Department of Heavy Industry for implementation of the Production Linked Incentive (PLI) Scheme ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’.

Key takeaways 

• Aim: To achieve a manufacturing capacity of 50 GigaWatt Hour of ACC and five Giga Watt Hour of Niche ACC with an outlay of 18,100 crore.
• ACCs are the new generation of advanced storage technologies that can store electric energy either as electrochemical or as chemical energy and convert it back to electric energy as and when required. 
• It will also give a big push to electric mobility, benefiting three-wheelers, four-wheelers and heavy vehicles.
• India is currently importing Battery Storage Equipment 
• The scheme will be helpful in making the country self-reliant (Atmanirbhar).

Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) Scheme: To promote the use of electric vehicles in the country. Presently, Phase-II of FAME India Scheme is being implemented for a period of 5 years.

Steps taken for adoption of electric vehicles in the country:

• Approved a Production Linked Incentive (PLI) scheme for manufacturing of Advanced Chemistry Cell (ACC) in the country in order to bring down prices of battery in the country. Drop in battery price will result in cost reduction of electric vehicles.
• Electric Vehicles are covered under Production Linked Incentive (PLI) scheme for Automobile and Auto Components
• GST on electric vehicles has been reduced from 12% to 5%; GST on chargers/ charging stations for electric vehicles has been reduced from 18% to 5%.
• Battery-operated vehicles will be given green license plates and be exempted from permit requirements.
• SMoRTH issued a notification advising states to waive road tax on EVs, which in turn will help reduce the initial cost of EVs.

News Source: PIB