India is all set to launch at least four Tesla-style giga factories to manufacture batteries. A capital of US$ 4 billion will be invested in the project. The storage batteries have multiple applications: they can be used in electric vehicles, electricity grids and electronic consumer durables. “The focus on battery storage manufacturing will enable India to develop an electric vehicle ecosystem including manufacturing and R&D, an opportunity the country missed while developing the solar industry,” opined Rupesh Agarwal, founder of AEM.
The plan to establish these battery storage factories of 10 gigawatt hours (GWh) each is the brainchild of NITI Aayog, the country’s federal policy think tank. It is speculated that government may offer incentives to manufacturers including concessional financing options with around 3% foreign exchange hedge on overseas loans and a fixed 3% interest subvention on loans availed in Indian rupees. It is also considering a proposal to decrease minimum alternative tax (MAT).
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