The Government of India, through the 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 would be supported with fiscal benefits in the form of a cash subsidy for production.
To be eligible for the government subsidy, the bidder would have to commit to setting up an advance-chemistry cell manufacturing facility between 5 GWh and 20 GWh capacity within five years from the date of appointment. Further, it must commit to a value-addition of a minimum 25% within two years from the appointed date and a minimum of 60% within five years from the appointed date, at the mother unit level in case of an integrated unit, or the project level through indigenous manufacturers, in a hub and spoke structure.
The respective State governments shall also provide incentives for implementation of the project, through the execution of a tripartite agreement between the special-purpose vehicle formed to set up the unit, the State government, and the Central government.
The selection among the qualified bidders would be made based on technical evaluation followed by financial bidding.
Bidders shall be shortlisted based on the technical evaluation. In the second stage, a financial evaluation will be carried based on the subsidy support sought by the bidder. The subsidy is capped at a maximum of INR 2,000/kWh. Any bid quoting a subsidy of over INR 2,000 shall be rejected. Bids will finally be ranked according to their combined technical and financial scores. The bidder achieving the highest combined score will be allocated the capacity first, and so on till 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 can be submitted by December 31. Technical bids shall open on January 3, 2022, and financial bids on January 21. The letter of award will be issued to successful bidders on February 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.
1 comment
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.