Reliance Industries Wins Big in India’s Battery Storage Initiative
Reliance Industries Limited (RIL) has been awarded a 10 GWh ACC capacity battery storage plant under the Production Linked Incentive (PLI) scheme. This decision was based on the Quality and Cost Based Selection (QCBS) mechanism.
Announcement by the Ministry
The Union Ministry of Heavy Industries (MHI) of India announced RIL as the successful bidder under the PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage. The goal is to boost domestic manufacturing capacity, reduce reliance on imports, and position India as a global leader in ACC battery production.
Bidding Process
The Ministry received bids from seven companies during the re-bidding process for the 10 GWh ACC manufacturing capacity, with a maximum budgetary outlay of Rs 3,620 crore. The bidders included:
- ACME Cleantech Solutions Private Limited
- Amara Raja Advanced Cell Technologies Private Limited
- Anvi Power Industries Private Limited
- JSW Neo Energy Limited
- Lucas TVS Limited
- Reliance Industries Limited
- Waaree Energies Limited
After evaluating all seven bids, six companies were shortlisted for financial evaluation. The financial bids for these qualified bidders were opened on August 2, following the technical evaluation results, through a transparent global tender process conducted via the CPP portal of the Government of India.
Final Evaluation
The final evaluation of the shortlisted bidders was conducted using the QCBS mechanism, ranking them based on their combined technical and financial scores. Reliance Industries Limited emerged as the top-ranked bidder, securing the 10 GWh PLI ACC capacity. The remaining five shortlisted companies were placed on a waiting list in order of their ranks:
| Company | Waitlist Rank |
|---|---|
| ACME Cleantech Solutions Private Limited | 1 |
| Amara Raja Advanced Cell Technologies Private Limited | 2 |
| Waaree Energies Limited | 3 |
| JSW Neo Energy Limited | 4 |
| Lucas TVS Limited | 5 |
Background
In May 2021, the Cabinet approved the technology-agnostic PLI Scheme under the ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ to achieve a manufacturing capacity of 50 GWh of ACC, with a budget outlay of Rs 18,100 crore. The first round of bidding concluded in March 2022, resulting in three firms being allocated a total of 30 GWh capacity, with agreements signed in July 2022.
The PLI ACC scheme has garnered a tremendous response, reflecting the industry’s confidence in India’s emergence as a world-class manufacturing hub, aligning with the Prime Minister’s vision of Atmanirbhar Bharat, a self-reliant India.
Doubts Revealed
Reliance Industries Limited (RIL) -: Reliance Industries Limited, or RIL, is one of the biggest companies in India. It is involved in many businesses like oil, gas, retail, and telecommunications.
10 GWh ACC capacity -: 10 GWh means 10 gigawatt-hours, which is a way to measure how much energy a battery can store. ACC stands for Advanced Chemistry Cell, which is a type of battery technology.
Production Linked Incentive (PLI) scheme -: The PLI scheme is a government program that gives money to companies to help them make more products in India. This helps reduce the need to buy things from other countries.
Union Ministry of Heavy Industries -: The Union Ministry of Heavy Industries is a part of the Indian government that looks after big industries like car manufacturing and heavy machinery.
top bidder -: A top bidder is the company that offers the best proposal or price to win a project or contract.
domestic manufacturing -: Domestic manufacturing means making products within India instead of importing them from other countries.
import reliance -: Import reliance means depending on other countries to get products or materials.
May 2021 -: May 2021 is the month and year when the PLI scheme was approved by the Indian government.
50 GWh manufacturing capacity -: 50 GWh manufacturing capacity means the goal is to be able to make batteries that can store a total of 50 gigawatt-hours of energy.
Rs 18,100 crore -: Rs 18,100 crore is a large amount of money, where ‘Rs’ stands for Indian Rupees, and ‘crore’ means ten million. So, Rs 18,100 crore is 181 billion rupees.
global leader in ACC battery production -: A global leader in ACC battery production means being one of the best and biggest producers of advanced chemistry cell batteries in the world.