The Delhi Government, in a bid to encourage research on new technologies and innovations, is likely to notify another Production Linked Incentive scheme for more advanced EV battery technologies. The scheme is expected to launch by December this year.
According to ETAuto, at least six companies are in discussions with the policy-making body for the additional ACC PLI Scheme. The scheme is meant to target technology players who could not participate in the existing ACC PLI Scheme. The scheme will focus on the advanced technologies that may be introduced to the market after five years, including solid-state battery technology.
Randheer Singh, Director of Electric Mobility, Niti Aayog, said, “We wish to target those technologies which were unable to become a part of ACC PLI, including those which haven’t been commercialized at GWh level yet.”
The new scheme does not have a minimum investment parameter compared to the previous one. This will encourage startups and companies with financial limitations. In March, The Union government said that the PLI scheme for Automobile and Auto Components has successfully attracted a proposed investment of INR 74,850 Cr over five years. The scheme commenced from FY22-23.
The scheme is categorized into two. First is the Champion OEM Incentive Scheme, applicable for Battery Electric Vehicles and Hydrogen Fuel Cell Vehicles of all segments. The second part is the Component Champion Incentive Scheme for Advanced Automotive Technology Components of vehicles.
It is predicted that implementing the PLI scheme, which was launched to help the automotive industry overcome cost difficulties and create economies of scale, will facilitate the industry to move up the value chain into higher value-added products.