New Delhi: In a major boost for electric vehicle usage in the country, the Union Cabinet has approved a production linked incentive scheme for the Advance Chemistry Cell (ACC) Battery sector.
Briefing media after the Cabinet meeting, Union Information and Broadcasting Minister Prakash Javedkar said that under the proposed scheme incentives worth Rs 18,000 crore will be made available for ACC battery manufacturing companies.
According to the government, the scheme will attract around Rs 45,000 crore investment, both domestic and foreign, in to the ACC battery manufacturing sector.
Incentives will be given on the basis of sales, localisation and energy efficiency, Javdekar said.
“The scheme will not only help the electric vehicle segment but also improve solar energy production in the country,” he added.
In fact, the Cabinet gave its in principle approval to this scheme last November along with nine other sectors covering automobiles, pharmaceutical drugs and telecom products among others.
Presenting the Union Budget 2021-22, Finance Minister Nirmala Sitharaman expanded the PLI Scheme to 13 sectors with a commitment of Rs 1.97 lakh crore.
“..PLI schemes to create manufacturing global champions for an AtmaNirbhar Bharat have been announced for 13 sectors. For this, the government has committed nearly `1.97 lakh crores, over 5 years starting FY 2021-22,” Sitharaman said last February.
