India launches tender for 50 GWh of battery cell output with subsidy support


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.

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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.

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