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Reliance, Ola Electric and Mahindra bid for incentives under India’s battery scheme

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NEW DELHI – India’s Reliance Industries, Softbank Group-backed Ola Electric and automaker Mahindra & Mahindra have submitted bids under the country’s $2.4 billion battery program, the report said on Saturday. government.

India finalized an incentive program last year to encourage companies to invest in local battery manufacturing as it seeks to establish a national supply chain for clean transportation and building storage for renewable energy.

Hyundai Global Motors, engineering conglomerate Larsen & Toubro and battery makers Amara Raja and Exide have also submitted bids, the heavy industries ministry said.

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“The program contemplates an investment that will boost domestic manufacturing…and foreign direct investment into the country,” the ministry said.

India wants to establish a total of 50 gigawatt-hours (GWh) of battery storage capacity over five years, which it says will attract direct investment of about $6 billion.

To benefit from the incentives, companies must put in place at least 5 Gwh of storage capacity and meet certain local content conditions, which would require a minimum investment of more than $850 million.

Ten companies submitted bids totaling around 130 Gwh, the ministry said.

India was also encouraging global companies such as Tesla Inc, Samsung, LG Energy, Northvolt and Panasonic to invest.

Clean car technology is a key part of India’s strategy to reduce pollution in major cities and reduce dependence on oil. But electric vehicles (EVs) currently account for a fraction of total sales in the country, mainly due to their high price as the batteries are imported.

The South Asian country wants electric cars to make up 30% of passenger car sales by 2030 and electric motorcycles and scooters to make up 40% of those sales, driving demand for batteries that currently account for around 35 % to 40% of total vehicles. Cost. (Reporting by Aditi Shah; Editing by Kirsten Donovan and Ros Russell)