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ARTICLE · 05 JANUARY 2021

Analyzing The PLI Scheme For Battery Manufacturing

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The scheme's battery policy aims to make manufacturers globally competitive, boost exports, achieve economies of scale and produce cutting edge products.

IndiaCorporate/Commercial Law
Dipti Lavya Swain
Dipti Lavya Swain
Esha Nair
Esha Nair
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In a bold move, the government approved the production-linked incentive (PLI) scheme in advance chemistry cell (ACC) battery manufacturing on 11 November 2020 in addition to 10 other sectors. The scheme's battery policy aims to make manufacturers globally competitive, boost exports, achieve economies of scale and produce cutting edge products.

This is an effort to promote the use of electric vehicles (EV), which have faced headwinds in India given the high battery costs and lack of supporting infrastructure. Indian companies generally import batteries, which account for more than half the cost of an EV. The government has proposed the building of local manufacturing facilities, seeking to reduce the cost and encourage competition.

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