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

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


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NEW DELHI, January 14 (Reuters) – Reliance Industries of India (RELI.NS), Ola Electric, backed by Softbank Group (9984.T), and carmaker Mahindra & Mahindra (MAHM.NS) have submitted bids under the country’s $ 2.4 billion battery plan. the government said on Saturday.

India completed 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 transport and build renewable energy storage.

Hyundai Global Motors, engineering conglomerate Larsen & Toubro (LART.NS) and battery makers Amara Raja (AMAR.NS) and Exide (EXID.NS) have also submitted bids, the Ministry of Heavy Industries said.

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

India wants to set a total of 50 gigawatt hours (Gwh) of battery storage capacity over five years, which is expected to attract about $ 6 billion in direct investment.

To qualify for the incentives, companies must set at least 5 Gwh of storage capacity and meet certain local content requirements, all of which would require a minimum investment of more than $ 850 million.

Ten companies have submitted bids for a total of about 130 Gwh, the ministry said.

India was also encouraging global companies like Tesla Inc (TSLA.O), Samsung (005930.KS), LG Energy, Northvolt and Panasonic (6752.T) to invest. Read more

Clean car technology is a key part of India’s strategy to reduce pollution in big 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 batteries are imported.

The South Asian country wants electric cars to account for 30% of private car sales by 2030 and for motorcycles and electric scooters to account for 40% of those sales, boosting the demand for batteries they currently provide among the 35% and 40% of the total vehicle. cost.

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Report by Aditi Shah; Edited by Kirsten Donovan and Ros Russell

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