Cabinet approvesProduction Linked Incentive scheme “National Programme on Advanced Chemistry Cell Battery Storage”
The incentive amount will increase with increased specific energy density & cycles and increased local value addition. Each selected ACC battery Storage manufacturer would have to commit to set-up an ACC manufacturing facility of minimum five (5) GWh capacity and ensure a minimum 60% domestic value addition at the Project level within five years. Furthermore, the beneficiary firms have to achieve a domestic value addition of atleast 25% and incur the mandatory investment Rs.225 crore /GWh within 2 Years (at the Mother Unit Level) and raise it to 60% domestic value addition within 5 Years, either at Mother Unit, in-case of an Integrated Unit, or at the Project Level, in-case of "Hub & Spoke" structure.
- Setup a cumulative 50 GWh of ACC manufacturing facilities in India under the Programme.
- Direct investment of around Rs.45,000 crore in ACC Battery storage manufacturing projects.
- Facilitate demand creation for battery storage in India.
- Facilitate Make-ln-lndia: Greater emphasis upon domestic value-capture and therefore reduction in import dependence.
- Net savings of Indian Rs. 2,00,000 crore to Rs.2,50,000 crore on account of oil import bill reduction during the period of this Programme due to EV adoption as ACCs manufactured under the Programme is expected to accelerate EV adoption.
- The manufacturing of ACCs will facilitate demand for EVs, which are proven to be significantly less polluting. As India pursues an ambitious renewable energy agenda, the ACC program will be a key contributing factor to reduce India's Green House Gas (GHG) emissions which will be in line with India's commitment to combat climate change.
- Import substitution of around Rs.20,000 crore every year.
- Impetus to Research & Development to achieve higher specific energy density and cycles in ACC.
- Promote newer and niche cell technologies.
- Ola Electric to launch a compact city car with an attractive price
- Ola’s global design centre for electric PVs to come up in Bengaluru
- The firm could also open its Hypercharger network to its electric car customers
Sterling & Wilson Solar Solutions Inc. (SWSS), the US subsidiary of Sterling & Wilson Solar Ltd (SWSL) has signed an order worth USD 121.7 million (INR 890 crore) in the United States.
The order was signed for a leading sustainable energy company in the Pacific Northwest region of the US and is scheduled to be commissioned by Q4 FY 2022.
SWSS has not revealed the company name but has confirmed that they will be managing all turn-key executions for the PV project.
“We are delighted to have won this order in the USA and with this project, our cumulative orders booked in the country now stand at around USD 260 million (~INR 1,880 crore),” said Amit Jain, Country Head, Sterling and Wilson Solar Solutions, Inc.
“With the renewed commitment by the new administration in renewable energy, that includes rejoining the Paris Climate Accord, investing $2 trillion in clean energy, and fully decarbonizing the power sector by 2035, USA has huge potential,” Jain added.
SWSL along with its subsidiary has been at the forefront of executing projects globally. It is credited with executing more than 10.8 GWp of solar projects (commissioned and under various stages of construction) across the globe. Its portfolio includes a 1,177 MWp Solar PV plant in Abu Dhabi - the world’s largest single-site solar plant.
India plans to offer fresh incentives to companies making electric vehicles (EVs) as part of a broad auto sector scheme it expects to attract $14 billion of investment over five years, according to industry sources and a document seen by Reuters. The country’s efforts to promote EVs to reduce its oil dependence and cut pollution have been stymied so far by a lack of investment and weak demand, as well as the patchwork nature of existing incentives that vary from state to state. The new automotive sector scheme, however, has been under discussion since mid-2020 to provide a more focused approach, industry sources close to the matter told Reuters. The plans envisage $8 billion of incentives for carmakers and suppliers over a five-year period to drive large investment in the sector.
Final details of the scheme are expected within a month, but companies will be able to apply for incentives from April 1, the sources said.
Companies will receive 4-7% government cashbacks on the eligible sale and export value of vehicles and components, but for EVs and their components there is an additional 2% as a “growth incentive” to promote electric mobility, according to the draft policy document seen by Reuters.
Elon Musk’s Tesla Inc is already gearing up to enter India while rivals including Ford, Volkswagen and India’s Tata Motors and Mahindra & Mahindra also have plans to invest billions of dollars in EVs to meet stricter global emissions regulations.
Automotive component manufacturers in India must be ready to pivot their product offerings to cater for the shift towards EVs, the document said.
MADE IN INDIA
The automotive incentive scheme is part of India’s broader $27 billion programme to attract manufacturers from the likes of China and Vietnam to capture a bigger share of the global supply chain and exports.
But for new companies entering India, as well as existing automakers, challenges abound.
Steep interest rates and power tariffs, as well as poor infrastructure and high logistics costs, make it costlier for companies to operate in India compared with rivals such as Thailand or Vietnam.
“The (new) scheme proposes financial incentives to help overcome these disabilities and make India more competitive,” the draft policy document said, referring to inefficiencies that it said can lead to 5-8% higher costs for manufacturers in India.
The government expects the scheme to bring additional investment of $14 billion, create 5.8 million new jobs and rake in more than $4 billion in total tax revenue over five years.
To benefit from the scheme automakers must meet conditions including minimum global revenue of $1.4 billion. For auto parts makers it is $69 million. The companies must grow by at least 8% each year to qualify for the incentives, which are also linked to the distance between the factory and point of sale.
The document added that existing programmes focus on a large number of companies that lack scale and “are constrained in their ability to invest and undertake the risk required for rapid growth”.
“A change in strategy is needed to focus on promoting firms that have the scale, competitive ability and management capabilities to be automotive champions,” it said.
Union Transport Minister Nitin Gadkari announced the much-awaited Vehicle Scrappage Policy in the Loksabha on Thursday, March 18.
Gadkari’s announcement has come after Union Finance Minister Nirmala Sitharaman in her Budget 2021 address proposed a Voluntary Vehicle Scrappage Policy to phase out old and unfit vehicles to curb air pollution in the country.
“In the interest of a clean environment and rider and pedestrian safety, the Ministry of Road Transport and Highways is introducing the Voluntary Vehicle-Fleet Modernization Program (VVMP) or Vehicle Scrapping Policy which is aimed at creating an ecosystem for phasing out of unfit and polluting vehicles,” the transport minister said.
Old, end-of-life-vehicles (ELV) cause an estimated 10-12 times more pollution compared with the new ones.
The overarching goal of the policy is to reduce vehicular particulate matter pollution, achieve better fuel efficiency, and boost the availability of low-cost raw materials for the automotive, steel, and electronics industry – while helping the country meet its climate commitments.
In February, Gadkari noted the policy would cover an estimated 51 lakh light motor vehicles (LMV) above 20 years of age, 34 lakh LMVs above 15 years, and 17 lakh medium and heavy motor vehicles above 15 years, and currently without valid fitness certificates.
The minister confirmed that efforts are underway for setting up Integrated Scrapping Facilities across India. Some of the identified places include Alang in Gujarat, where it is being planned to develop a highly specialized center for scrapping, among many other potential centers, where different scrapping technologies can be synergized together.
While the Scrappage Policy would be instrumental in eliminating high CO2 emitting old vehicles, studies indicate it would also help significantly to reuse a good chunk of the heaps of auto waste. For instance, auto parts including steel, plastic, and other metals and materials, can be recovered and brought back in use after a vehicle is scrapped. The Vehicle Scrappage Policy can build this circularity.
According to an estimate by the Federation of Indian Chambers of Commerce (FICCI), ELVs have the potential to generate 8 million tons of steel that can be extracted in India by 2025. This can be a significant opportunity for India as a major consumer of steel -- a good percent of which is used by the automobile sector – thereby substituting imports and improving the country's balance of payment.
In addition to the Integrated Scrapping Facilities, the government is looking at the promotion and setting up of Registered Vehicle Scrapping Facility (RVSF) across India and has encouraged public and private participation for opening up of such centres.
Similarly, the Ministry has said it will promote the setting up of Automated Fitness Centres on a PPP model by the state government, private sector, automobile companies, etc.
At first glance, the Vehicle Scrappage Policy has not provided any incentive for replacing old vehicles with electric ones – a move that was highly anticipated by climate experts and electric vehicle stakeholders.
The Ministry of Road Transport and Highways is expected to publish draft notifications in the next few weeks which shall be in the public domain for a period of 30 days to solicit comments and views of all involved stakeholders.