News Details
Category : Economy
Headline : Govt willing to invite companies to set up battery plants
Date: 11/06/2019 12:52
The government of India is willing to issue tenders to invite companies to set up 50-GW battery manufacturing base in India at USD 50-billion investment with attractive financial incentives as the Cabinet is expected to consider the proposal in a week.

This programme of batteries manufacturing, has been scaled up to 50 GW in a proposal sent to Cabinet from 40 GW that was planned earlier. The government is likely to offer subsidies and duty cuts. This could include reducing minimum alternate tax to half and import and export duty waivers or cuts for eight years for successful bidders.

As per the final plan stated in the media report, Niti Aayog will seek proposals from states to identify locations for plants and on providing duty waivers and exemptions to the battery manufacturers. The states will be asked to reduce state GST, facilitate land acquisition, provide concessional electricity, single-window clearance and environmental clearance.ÿ

After the government selects the best proposals, it will invite bids from companies to set up the plants at identified locations. 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.ÿ

This proposal is aimed at making storage systems competitive in India. Indian companies import batteries and battery cells from countries like China and the US.