Working on the path of making Indian self-reliant, the Ministry of Heavy Industries has decided to move a proposal for a ₹3,000 crore-production linked incentive (PLI) scheme to develop and make ‘niche batteries’ for electric vehicles.
This move can be seen as a key step in India’s efforts to cut fossil fuel dependence and achieve climate goals.
The proposal, which has been sent to the department of Expenditure in the finance ministry, follows several months of talks between the Ministry of heavy industries and NITI Aayog on how to incentivize the development of niche batteries.
“The ministry has sent the proposal for allocation of funds for the proposed scheme to the department of expenditure,” said a person aware of the developments.
Unlike other PLI schemes, where the focus is exclusively on domestic manufacturing, this scheme is also likely to provide subsidies for research and development of “newer chemistries” for batteries.