IESA, India’s leading alliance on energy storage & e-mobility welcomes the Union Cabinet’s approval to introduce the Production-Linked Incentive (PLI) Scheme for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat. A total financial outlay of INR 1,45,980 crore (€18 bn) over a period of five years, of which, Advanced Chemistry Cell (ACC) battery has been approved a financial outlay of INR 18,100 crores (€2.25 bn).

NITI Aayog CEO said the government was pushing for electric mobility with FAME and FAME 2 schemes, bringing down the rate of taxes on electric vehicles at 5%, as compared to 28% for other vehicles and 43% for hybrid vehicles. Tax exemption, up to Rs 1 lakh, to people who are buying electric vehicles to increase focus on electrification will be huge. If India has to emerge as a leader in clean, connected and shared mobility, there are two important things to keep in mind — one is that India is a major user of two- and three-wheelers and 80% of people travel in these vehicles. Second, battery will be an important component. Battery manufacturing and storage will be a key component and storage will have to be linked to renewable energy integration with the grid.