As many as 10 companies submitted bids under the production-linked incentive scheme worth more than Rs18,000 crore to manufacture Advanced Chemistry Cell (ACC) battery storage.

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The government said on Saturday that Reliance New Energy Solar, Hyundai Global Motors, Ola Electric, Mahindra & Mahindra and Larsen & Toubro are among the 10 firms.

A total of 10 bids with capacity of 130 Gwh -- over twice the manufacturing capacity to be awarded -- were received. Amara Raja Batteries, Exide Industries, Rajesh Exports, India Power Corporation and Lucas-TVS have also submitted bids.

"The industry has reposed its faith in India's stellar progress as a world-class manufacturing destination which resonates strongly with Prime Minister's clarion call of 'Atma Nirbhar Bharat' - a self-reliant India," an official statement said.

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The government approved the PLI scheme, 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage', to achieve manufacturing capacity of 50 Giga Watt Hour (GWh) and enhance India's manufacturing capabilities with a budgetary outlay of Rs 18,100 crore. Under the scheme, the manufacturing facility would have to be set up within a period of two years. The incentive will be disbursed thereafter over a period of five years on sale of batteries manufactured in India.

"The scheme received an encouraging response from local as well as global investors as bids received is 2.6 times the manufacturing capacity to be awarded i.e. 50 Gwh," the heavy industries ministry stated. The technical bids received for the scheme were opened on Saturday.

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According to the government, the incentive structure would encourage industry to promote fresh investments in indigenous supply chain/ deep localisation for battery manufacturing in the country. The ACC PLI scheme is expected to result in savings to the nation on account of reduction in import of crude oil to a significant extent and increase the share of renewable energy at the national grid level, the statement said. The scheme for ACC along with PLI scheme for the automotive sector and FAME will enable India to leapfrog to environmentally cleaner, sustainable, advanced and more efficient electric vehicles (EV) based system.

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With PTI inputs