India may relax some of the conditions set in the ₹18,100 crore production linked incentive (PLI) scheme to attract investments from a host of companies in the energy and power sector. The PLI scheme requires companies to commit to build a manufacturing unit of at least 5GWh capacity and ensure minimum domestic value addition of 60% within five years at the ‘project’ level. Emailed queries to NITI Aayog, the ministry of heavy industries and public enterprises, Tata Chemicals and Amara Raja Batteries on Tuesday remained unanswered. This might lead to the creation of monopolistic cartels, “but also run the risk of awarding the entire PLI scheme to limited battery chemistries that may be unviable or obsolete in few years." It also requested NITI Aayog to reserve 30% of the proposed 50GWh capacity under the PLI scheme for smaller players who can set up a plant with a minimum capacity of 1GWh.

Source: Mint May 28, 2021 18:22 UTC