Another PLI scheme in offing for more advanced EV battery tech

New Delhi: In a bid to encourage research on new technologies and innovations, the central government is likely to notify another Production Linked Incentive (PLI) scheme for more advanced EV battery technologies. The scheme is scheduled to be notified in a fortnight, and launch is expected by December this year.

ETAuto has learnt that at least 6 companies are in discussions with the policy making body for the additional ACC PLI Scheme. The scheme will target technology players who could not participate in the existing ACC PLI Scheme. It will also focus on the advancement technologies that may come to market 5 years or later, including solid state battery technology.

"We want to target those technologies which couldn't be part of the ACC PLI, including those which haven't been commercialized at GWh level yet," Randheer Singh, Director -- Electric Mobility, NITI Aayog told ETAuto.

Unlike the existing PLI scheme, the new scheme is not expected to have any minimum investment parameter to encourage startups and companies with financial limitations.

In September 2021, the Union Cabinet approved the revised production-linked incentive (PLI) scheme with an outlay of about INR 26,000 crore for the automobile sector, which aimed at promoting domestic manufacturing and creating jobs.

In March this year, the Union Government said that the PLI Scheme for Automobile and Auto Components has been successful in attracting a proposed investment of INR 74,850 crore against the target estimate of investment of INR 42,500 crore over five years. The scheme commenced from FY22-23 and has an outlay of INR 26,000 crore.

The scheme is categorized into two: Champion OEM Incentive Scheme which is applicable for Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments; and Component Champion Incentive Scheme which is for the Advanced Automotive Technology components of vehicles, Completely Knocked Down (CKD)/ Semi Knocked Down (SKD) kits, Vehicle aggregates of 2-Wheelers, 3-Wheelers, passenger vehicles, commercial vehicles and tractors etc.

The PLI scheme was launched to help the automotive industry in overcoming cost disabilities, create economies of scale and build a robust supply chain in areas of Advanced Automotive Technologies (AAT). The scheme will facilitate the industry to move up the value chain into higher value-added products, apart from generating employment. It will also provide an incentive of up to 18% to encourage the industry to make fresh investments in the indigenous supply chain of AAT products.

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