From pv magazine India
The Indian Ministry of Heavy Industries has invited bids to develop a cumulative 50 GWh of advance-chemistry battery cell manufacturing units in India under its production-linked incentive scheme. The selected bidders will be supported with fiscal benefits in the form of cash subsidies for production.
To be eligible for the government subsidy, the bidders will have to commit to setting up an advance-chemistry cell manufacturing facility of between 5 GWh and 20 GWh capacity within five years from the date of appointment. They must also commit to a minimum 25% value addition to the projects within two years from the appointed date and a minimum of 60% within five years.
State governments will also provide incentives for the projects, through the execution of tripartite agreements they have with a special-purpose vehicle formed to set up the unit and the central government. The bids will be assessed based on technical evaluations, followed by financial considerations.
Bidders will be shortlisted based on the technical evaluation. In the second stage, a financial evaluation will be conducted based on the subsidy support sought by the bidder. The subsidy is capped at a maximum of INR 2,000 ($26.69)/kWh. Any bid quoting a subsidy of more than INR 2,000 will be rejected.
Popular content
Bids will finally be ranked according to their combined technical and financial scores. The bidder with the highest combined score will be allocated the capacity first, followed by others, until a cumulative capacity of 50 GWh per year has been allocated.
The subsidy disbursement shall commence once the proposed committed capacity and value addition are achieved and the sale of the advanced chemistry cell begins. It shall be phased out over a five-year window, payable quarterly.
Bids must be submitted by Dec. 31, but technical bids will remain open until Jan. 3, 2022, and financial bids until Jan. 21. The letter of award will be issued to successful bidders on Feb. 4.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.