EV PLI Scheme: Indian Government is expected to come with a new production-linked incentive scheme for EV batteries. The new initiative will be aimed to cut down the cost of of production that will result in affordable electric vehicles in India.
Addressing the EV Ready India Dashboard of OMI Foundation, the Union Power and New and Renewable energy minister said, “We are coming out with another production-linked incentive (PLI) to increase the volumes (of storage or battery). “Price of storage will come down only if you add volumes. That is why there is a production-linked incentive (PLI) for storage,” he added.
The minister mentioned about limited battery manufacturing capacity in the world and quoted it as a reason for higher price of EV batteries.
Back in May 2021, Central Government approved the Production Linked Incentive (PLI) Scheme of Rs. 18100 outlay for the manufacturing of ACC batteries. The scheme was aimed to attract domestic and foreign investment of Rs. 45000 Crore.
Advanced Chemistry Cell (ACC) batteries are more contemporary batteries that can store electric energy either as chemical or electrochemical energy and later convert it into electric energy when needed.
Rk Singh also emphasized that shift to EVs will significantly reduce emissions in India. He also stated that 80 percent of lithium resources are limited to one country.
“For us as a country switching to electric mobility is of absolute importance. One rider to emerge as a power (economy), is that you cannot be energy dependent. That is our primary reason to push towards EV,” the minister said.
Talking about the Indian economy, the minister said that Indian economy is the fastest growing economy of the world and will grow with same pace in the coming two or three decades.
Minister said “Last year we grew at 7.3 per cent. This year we are growing at 6.3 per cent and my assessment is that we will continue growing at 7.5 to 7.8 per cent. So the rate of growth will increase and will not plateau.”
While concluding his speech, the minister emphasized that by 2030, India is aiming to have 65 percent our eletric energy coming from non-fossil fuel based power.