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MHI Launches Mega ‘Battery Bonanza’ Tender: Seeking Top Bidders for 10 GWh Green Energy Fiesta!

Gigawatts of Opportunity: Online Bidding Gala Opens for India’s Green Future

Delhi, 24 Jan 2024: In a significant leap towards a greener and self-reliant India, the Ministry of Heavy Industries (MHI) has rolled out a global tender, humorously dubbed the ‘Battery Bonanza’, inviting bids for the establishment of a whopping 10 GWh Advanced Chemistry Cell (ACC) manufacturing facilities. This grand undertaking is a part of the Production Linked Incentive (PLI) scheme for ACC manufacturing, an initiative that underscores the ministry’s dedication to fostering a technology-agnostic and environmentally-friendly manufacturing landscape in India.

The tender, which is now open, has a unique twist: the entire bidding process will be conducted online, ensuring a transparent and fair competition. Employing the Quality and Cost Based Selection (QCBS) mechanism, this two-stage bidding fiesta aims to attract the crème de la crème of the manufacturing world. Bidders can access the tender documents online from today, with the bid submission deadline set for the 22nd of April, 2024. The much-anticipated bid opening event is scheduled for the next day, 23rd April 2024.

MHI, a government body renowned for its commitment to revolutionizing the capital goods, automobile, and heavy electrical equipment sectors, is making strides towards clean and green public transport. This initiative aligns perfectly with the Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) scheme, which aims at reducing fossil fuel dependency and curbing vehicular emissions. Furthermore, the PLI Auto and Auto Components scheme is another feather in MHI’s cap, enhancing India’s manufacturing prowess and export capabilities in the automotive arena, focusing on Advanced Automotive Technology (AAT) products.

Dr. Mahendra Nath Pandey, the Union Minister of Heavy Industries, commented on the rebidding of PLI for ACC with enthusiasm, affirming MHI’s commitment to bolstering India’s manufacturing and export sectors in the automotive and automobile component realm. He emphasized the ministry’s alignment with Prime Minister Shri Narendra Modi’s vision of a self-reliant (Atmanirbhar) and developed India (Viksit Bharat). The Prime Minister’s ambitious goal of achieving net zero by 2070 is a guiding star for the Ministry’s initiatives in promoting environmentally friendly manufacturing in the automotive industry, with PLI-Auto, PLI – Advanced Chemistry Cell, and FAME-II schemes leading the charge.

Rewinding to May 2021, the Cabinet’s approval of the technology-agnostic PLI Scheme on ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ marked a turning point. With a staggering outlay of Rs.18,100 Crore, the scheme aimed at achieving a 50 GWh manufacturing capacity of ACC. The first round of ACC PLI bidding, wrapped up in March 2022, saw three companies bagging a total capacity of 30 GWh. Following this, the program agreement with the selected companies was inked in July 2022.

In a fresh push for green innovation, the MHI has now released a Request for Proposal (RfP) for the selection of bidders under the PLI Scheme for ACC Battery Storage. This ambitious endeavor seeks to establish Battery Manufacturing Units with a total capacity of 10 GWh, backed by a budgetary outlay of Rs.3,620 crore. As India gears up for this mega ‘Battery Bonanza’, the global manufacturing community watches with keen interest, ready to partake in this green energy fiesta.

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