The Ministry of Heavy Industries and the centre has floated a tender to set up production capacities of a minimum of 5 GWh of Advanced Chemistry Cells (ACC) for energy storage under a production-linked initiative (PLI).

The deadline to submit the bids is 31 December 2021, and the bids will be opened on 3 January 2022.

The winning bidder will have to set up an ACC facility of at least 5 GWh capacity with a value addition of at least 25% within two years from the proposed date and 60% value addition within five years from the appointed date.

The subsidy amount quoted by the bidder should be subjected to Rs 2,000 per kWh. Bidders quoting over Rs 2,000 per kWh will be rejected.

The winning bidder will have to submit Rs 10 billion as a security amount in the form of a bank guarantee from any national bank or scheduled bank across the country.

In June, the Department of Heavy Industry and the Government of India issued an order for the PLI scheme to implement ACC manufacturing units for electric vehicles.

In November 2020, the centre approved the PLI scheme in 10 major sectors to boost India's manufacturing capacities and exports. The plan's five years incentive is Rs 181 billion to maintain 50 GWh domestic ACC manufacturing.

The bidder should be a single firm or a group of entities coming together to implement the project. The bidder should be a single person, private entity, public sector or a combination with a formal intent to agree to an existing contract to form a consortium.

To participate in the bidding, the bidder should not be an alternative investment fund (AIF) or a foreign investment fund. The net worth of the bidder should be at least Rs 2.25 billion per GWh. If the bidder is an AIF of a foreign investment fund, the minimum ACI should be Rs 2.25 billion per GWh at the end of the previous financial year. Bidding in any capacity, the net worth of the bidder should be a minimum of Rs 15 billion per the request of the proposal.

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