Government to float tender for 40GW battery plants

In a bid to boost the electric vehicle and renewable energy segments in the country, the government is reportedly chalking out plans to float tender to establish battery making capacity of 40 gigawatts (GW).

An official speaking to ET said that the government will ask states to compete for the opportunity to set up internationally competitive facilities that will also service global markets.

Domestic and global battery manufacturers will also be asked to bid for setting up plants in the selected states.

The proposal is expected to attract investments of $40 billion in the coming two-three years and gather interest from global battery manufacturing and renewable energy firms.

The publication notes that the fiscal and non-fiscal measures are been figured out by the government to set up manufacturing units. They will be as competitive as those in China, so that exports are commercially viable.

Bids will be judged on the basis of land, incentives, power tariff discounts and regulatory and industrial support.

The proposal for large-scale battery manufacturing is targeted at making storage systems competitive in India so that electric vehicle adoption and installation of renewable energy becomes more viable.