To lessen its reliance on Chinese imports, the Indian government is creating a 2.63 billion dollar subsidy programme to boost domestic manufacture of energy grid battery. The programme is a component in India’s transition to renewable energy.
The Indian government is creating a sizable subsidy programme costing billions of dollars, according to a proposal from the power ministry. The programme promotes businesses involved in the development of energy grid battery. According to the Financial Times’ story on Wednesday, this project is a part of the nation’s transition to renewable energy.
According to the Financial Times, a draft proposal describes an India-specific production-linked incentive subsidy programme. Companies will earn 216 billion rupees (2.63 billion dollar subsidy) from 2023 to 2030 under this programme to start battery cell production facilities in the nation.
According to the draft plan, which was examined by the Financial Times, increasing coal-based thermal generating is not practicable owing to “international opinion” and environmental concerns. An inquiry for comments was not immediately answered by the Indian electricity ministry. According to the draft plan, indigenous battery cell production is essential to lessen India’s dependency on rival China for battery imports in addition to enabling the energy transition.
The proposal paper seen by FT stated that if India did not take immediate action to establish local manufacturing capacity of battery energy storage devices, the requirements of our energy transformation would result in significant imports from China.
To lessen reliance on imports of lithium which is the main material used in batteries today, Indian researchers are looking into a number of different chemistries for battery storage. China currently converts the majority of the world’s raw lithium into chemicals used in batteries.
The Union Minister for Power, New and Renewable Energy, R.K. Singh has stated on several occasions that a PLI plan will help to encourage the expansion of capacity. Given the country’s existing high cost of storage, there is a need to increase the production of storage systems.
In order to ensure the sector’s financial viability, finance minister Nirmala Sitharaman proposed monetary support in the Union Budget 2023–24.
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