In an attempt to establish a domestic supply chain, the Indian government is planning to pitch with global firms. Companies like Samsung, Tesla, LG Energy have been encouraged to invest in local manufacturing. One of the government officials said that India is going to host five road shows next month in order to convince them. These road shows would be organized in countries like the United States, Germany, France, South Korea, and Japan.
Hesitance among global firms
Tesla, Samsung, and LG Energy are among the list of invited companies. The other companies include Northvolt, Panasonic, and Toshiba. Some local players in the sector like Reliance Industries, Adani Group, Tata Group have shown interest, while the global firms are less enthusiastic, as said by the official.
“Getting global companies into India will signal seriousness and they will also bring in good technology, quality, and safety standards,” the particular person mentioned.
The bigger picture
Indian Government intends to invest $4.6 billion in incentives to firms, to encourage them to set up better manufacturing facilities here. The Union Minister for Road Transport and Highways plans to make India an electric vehicle market space by 2030. Further, it targets that 80% of 2-wheelers and 30% of private vehicles in India will be electric by then.
The entire movie is a part of the $2.4 billion investment and incentive program. To boost it, the government is also inviting investment proposals from the companies. Under the terms of the $2.4 billion programme, India is looking to install a total of 50 gigawatt-hours (GWh) of battery storage capacity over five years, which is expected to attract direct investment of about $6 billion
For any company to qualify for the incentive, it must be able to install 5Gwh of storage capacity and meet the local demands. This would be done with a minimum investment of $850 million, the official has stated.
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