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Mahesh

25/08/22 10:30 AM IST

Govt might dangle $500mn sops to develop ‘niche’ batteries

In News 
  • The government plans to offer production-linked sops worth around $500 million to develop ‘niche’ batteries to achieve climate goals and cut reliance on fossil fuel imports.
PLI Scheme 
  • A new PLI is coming on niche advanced chemistry cell, unlike other PLI schemes where the focus is on manufacturing, this scheme is likely to provide sops for research and development of newer chemistries, along with production.
  • The search for new technologies and battery chemistry comes against the backdrop of an acute shortage of lithium in India.
  • Under the PLI scheme for advanced chemistry cell battery storage, the cash subsidy has been capped at 20% of the effective price (net of GST) or the effective sales turnover.
  • Lithium iron phosphate, nickel manganese cobalt, and lithium titanium oxide batteries, which come under the category of lithium-ion batteries, are among the most commercially viable batteries.
Historical Background 
  • Production Linked Incentive or PLI scheme is a scheme that aims to give companies incentives on incremental sales from products manufactured in domestic units.
  • The scheme invites foreign companies to set up units in India, however, it also aims to encourage local companies to set up or expand existing manufacturing units and also to generate more employment and cut down the country’s reliance on imports from other countries.
  • It was launched in April 2020, for the Large Scale Electronics Manufacturing sector, but later towards the end of 2020 was introduced for 10 other sectors.
  • This scheme was introduced in line with India’s Atmanirbhar Bharat campaign.

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