Government invites companies to set up battery plants
This article was published on : July 10, 2019
Government of India is planning to roll out tenders inviting companies for setting up 50-GW battery manufacturing base in India with an investment of $50 billion. The government will also attract financial incentives. Also, there is a possibility that the cuts in the duty will also reduce the tax by half. Also, there are plans to cut the import and export duty for the next eight years to all the successful bidders. The government has already scaled the programme of battery manufacturing from 40 GW to 50 GW as per a proposal already sent to the cabinet.
Once the note is approved by the Cabinet, the bidding process will have to be completed within six months. The facilities must be installed by 2022 and then the companies will start getting incentives till 2030. As per the guidelines, minimum of five locations and maximum of 20 are likely to be identified. This move will bring in competitiveness in the storage system manufacturing. Proposals fpr the locations of the plants will be sought from the states by NITI Aayog. The Aayog has also directed the states to reduce the state GST rate, facilitate land acquisition, provide concessional electricity, single-window clearance and environmental clearance.
Once all these things are in place, bids will be invited from the companies. This is probably the first time Niti Aayog is executing a tendering process of this magnitude as it has always been involved in the planning stage. This move is expected to bring in competitiveness in the storage system manufacturing. As the government has planned to shift 30 % of the existing fleet to electric vehicles by 2020, the battery storage demand is expected to touch 300 GW mark.