Government policy think-tank NITI Aayog has prepared an ‘advanced chemistry cell’ proposal for battery manufacturing in India which will offer production linked incentives to producers.

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The target is to have 50,000 Mega Watt MW battery manufacturing capacity in the country by FY26. India currently imports about a billion dollars worth of batteries annually.

The government will support companies setting up plants through cash subsidy linked to sales growth and on raw materials sourced domestically.

The cash incentive for battery manufacturing is likely to be given for 10 years to strengthen the domestic battery industry. The formula and framework for cash incentives will be worked out after the Cabinet approval.

Sources told CNBC-TV18 that leading battery manufacturing companies from the US and Japan are interested in making batteries in India.

Even state-owned entities like BHEL, and oil marketing companies are interested in this sector as it would allow them to diversify into an area allied to their core activity.

From the private sector, companies like Reliance Industries, Tata, JSW are interested to invest in battery manufacturing, government sources said.

First Published:Aug 20, 2020 3:10 PM IST