The Indian government’s ambitious Rs 18,100 crore battery manufacturing scheme, launched in 2021, has failed to start commercial production four years after its inception. The scheme, aimed at establishing a domestic manufacturing capacity of 50 GWh for Advanced Chemistry Cell (ACC) batteries, has not produced a single unit of commercial battery output. This is a significant setback for the government’s plans for energy self-reliance, as India currently relies heavily on imports, mainly from China, for its battery needs.
The scheme, launched under the Ministry of Heavy Industries, had set a target for companies to invest Rs 2,145 crore and employ 1007 people by 2025. However, despite the passage of four years, none of the participating companies have made any significant progress. The ministry has issued show cause notices and levied fines on the companies, but they have requested a waiver, promising to start the project soon.
According to a senior officer, domestic manufacturers face several challenges in competing with imported batteries, including a lack of technology, skilled manpower, and critical equipment. The officer stated that the scheme aims to reduce India’s reliance on imported lithium-ion batteries, enhance energy security, and support the nation’s 500 GW renewable energy target by 2030. The scheme’s objectives include promoting domestic manufacturing, achieving technology neutrality, attracting investments, and establishing a significant ACC manufacturing capacity domestically.
The delay in the scheme’s implementation has raised concerns about the government’s ability to meet its energy self-reliance goals. The officer emphasized that the scheme is crucial for reducing India’s dependence on imports and promoting research and development in the field of advanced storage technologies. With the government’s target of achieving 500 GW of renewable energy by 2030, the successful implementation of the battery manufacturing scheme is essential for meeting this goal. The government needs to take urgent action to address the challenges faced by domestic manufacturers and ensure that the scheme is back on track to achieve its objectives.