Cabinet approves 5-year plan for ‘phased manufacturing’ of EV batteries

Cabinet approves 5-year plan for ‘phased manufacturing’ of EV batteries
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New Delhi, Mar 7: Supporting the decisions on electric vehicles approved during the last cabinet meeting, the government, on March 7, further approved creation of Phased Manufacturing Programme (PMP) to support and promote “clean, connected, shared and sustainable” mobility solutions.
The cabinet, headed by Prime Minister Narendra Modi, approved setting up of National Mission on Transformative Mobility and Battery Storage along with creation of the PMP for five years to “support setting up of few-large scale, export-competitive integrated batteries and cell manufacturing Giga plants”.
The government aims to promote indigenous manufacturing of all components utilised in the “supply chain for manufacturing of electric vehicles” through the PMP scheme, which will be executed between 2019-20 and 2023-24 and will be approved by the NMTMBS.
“The programme will provide a plan which will send clear signal to the industry to make necessary investments in capacity to localise the value chain,” the government said in the statement.
It was earlier reported that the government was contemplating setting up of Giga Factories for the production of battery packs in India.
“In its last meeting (held in December 2018), the Committee (of Secretaries) decided to focus on indigenous manufacturing of electric vehicles. It will lay the impetus on sourcing developing an indigenous supply chain that includes Giga-factories and also facilities where lithium-ion batteries can be recycled,” a source had said.
The term ‘Giga-factory’ was first coined by Elon Musk, who owns Tesla, the world’s biggest car-maker in the electric sphere. Giga-factory refers to a huge battery manufacturing centre where the Li-ion batteries, used for running EVs, are crafted.
During its last cabinet meeting on February 28, government had approved Rs 10,000 crore outlay for second phase of Faster Adoption and Manufacturing of Electric (& Hybrid) vehicles (FAME) Scheme which aims to subsidise manufacturing of electric vehicles.