In a bid to reduce costs and promote the adoption of electric vehicles in India, Union Minister R K Singh has announced that the government is contemplating the introduction of a new production-linked incentive (PLI) scheme for batteries. This move aims to facilitate the growth of the electric vehicle market by making battery manufacturing more competitive and attractive.
Government’s Vision: A Brief Overview
The government had previously approved a PLI scheme for the manufacturing of ACC (Advanced Chemistry Cell) batteries in May 2021. The estimated outlay for this scheme was a substantial Rs 18,100 crore, with the primary objective of attracting foreign direct investment (FDI) worth Rs 45,000 crore.
Addressing the Electric Vehicle Ready India Dashboard
Speaking at the EV Ready India Dashboard event organized by the OMI Foundation, Union Power and New & Renewable Energy Minister R K Singh highlighted the government’s intention to launch a new PLI scheme for batteries. His remarks suggest that this initiative seeks to increase battery production volumes, reduce costs, and thereby promote the widespread adoption of electric vehicles.
The Importance of Scaling Up Battery Production
Minister Singh emphasized that the cost of storage will only decrease as production volumes increase. Therefore, the introduction of the PLI scheme for batteries is seen as a crucial step in achieving this goal. By incentivizing and supporting the production of batteries at scale, the government aims to make electric vehicles more cost-effective and accessible to a broader segment of the population.
The government’s decision to consider a new PLI scheme for batteries underscores its commitment to driving the electric vehicle revolution in India. This initiative, if implemented successfully, could play a significant role in making electric vehicles more affordable and encouraging their widespread adoption across the country.
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