Advanced Chemistry Cells (ACCs) serve as the backbone of lithium-ion batteries, which are extensively utilized in electric vehicles (EVs) and various energy storage solutions. In alignment with India’s green initiatives, ACCs are crucial for facilitating a transition to a low-carbon economy. They enable the effective storage of renewable energy and support the operation of electric vehicles, essential elements in reducing greenhouse gas emissions.
At present, India faces challenges with minimal manufacturing capabilities for ACCs, necessitating a significant reliance on imports to satisfy domestic demand. This dependence highlights the urgent need for strategic efforts to develop local production capabilities for these vital components.
To address these challenges, the Indian government launched the Production Linked Incentive (PLI) Scheme on May 12, 2021. This initiative, with a financial commitment of Rs. 18,100 crore over five years, is designed to enhance local manufacturing of ACCs, reduce import dependency, and position India as a key player in the global ACC market.
The subsidy framework under the PLI Scheme is designed to promote production, facilitate technology transfer, and attract investments into the ACC sector. By linking subsidies to the volume of battery capacity produced and the extent of local value addition, the scheme aims to enhance cost-competitiveness for manufacturers.
Through the promotion of domestic ACC production, India aspires not only to achieve its greenhouse gas mitigation targets but also to emerge as a global hub for ACC manufacturing. This initiative is poised to drive economic growth and foster technology innovation within the nation.
Q1. What are Advanced Chemistry Cells (ACCs)?
Answer: Advanced Chemistry Cells (ACCs) are essential components of lithium-ion batteries, widely used in electric vehicles and renewable energy storage solutions.
Q2. Why is the PLI Scheme important for India?
Answer: The PLI Scheme aims to enhance domestic ACC manufacturing capabilities, reduce import dependency, and position India as a significant player in the global market.
Q3. How does the PLI Scheme encourage local production?
Answer: It offers subsidies based on battery capacity produced and local value addition, incentivizing manufacturers to invest and enhance competitiveness.
Q4. What is the target capacity for ACC manufacturing under the PLI Scheme?
Answer: The scheme targets establishing a competitive manufacturing ecosystem with a capacity of 50 GWh for ACCs, including niche technologies.
Q5. How do ACCs contribute to reducing greenhouse gas emissions?
Answer: ACCs enable the use of electric vehicles and facilitate renewable energy storage, both critical for lowering greenhouse gas emissions in India.
Question 1: What is the primary focus of the PLI Scheme in India?
A) Enhance agriculture production
B) Boost local manufacturing of Advanced Chemistry Cells
C) Promote tourism
D) Increase fossil fuel usage
Correct Answer: B
Question 2: How much investment is allocated for the PLI Scheme for ACCs?
A) Rs. 10,000 crore
B) Rs. 18,100 crore
C) Rs. 25,000 crore
D) Rs. 5,000 crore
Correct Answer: B
Question 3: What is the target capacity for ACCs set by the government under the PLI Scheme?
A) 30 GWh
B) 50 GWh
C) 70 GWh
D) 100 GWh
Correct Answer: B
Question 4: Why is reducing import dependency for ACCs important for India?
A) To increase foreign investments
B) To achieve economic self-sufficiency
C) To promote international trade
D) To decrease local job opportunities
Correct Answer: B
Question 5: Which sector benefits directly from the development of ACCs?
A) Textile industry
B) Electric vehicles
C) Agriculture
D) Construction
Correct Answer: B
Kutos : AI Assistant!
