India is preparing to launch a bidding process for an incentive program worth 80 billion rupees ($960 million) to boost the production of electric vehicle batteries. The program's objective is to encourage winning bidders to establish advanced chemistry battery plants with a combined output of 20 gigawatt-hours. The government has not disclosed its name yet, as the plans are confidential. The bidding process is set to begin next month, with interested investors invited to submit their proposals.

Several companies, including LG Energy Solution Ltd. from South Korea, and local giants such as Mahindra & Mahindra Ltd, Amara Raja Energy & Mobility Ltd, Exide Industries Ltd, and Larsen & Toubro Ltd, have expressed their interest during a consultation meeting with government officials. The government is planning to offer incentives to these companies for a period of five years on the sale of locally manufactured batteries. However, representatives for Mahindra, Amara Raja, Exide, LG, Larsen & Toubro, and the Ministry of Heavy Industries have not yet responded to requests for comment.

The Indian government selected Reliance Industries Ltd, Ola Electric Mobility Pvt, and Rajesh Exports Ltd. to produce 30 gigawatt hours of battery capacity under a government program. These companies will also receive incentives for their participation in the program. The demand for batteries is expected to increase to 260 gigawatt hours by 2030 due to the rising popularity of electric vehicles, grid-scale energy storage, and consumer electronics.

The Indian government is making efforts to promote the use of eco-friendly transportation. To attract Tesla Inc, Prime Minister Narendra Modi's administration is considering reducing import taxes for battery-powered models, according to the Financial Times. Additionally, the government has launched a $3.1 billion incentive program in 2021 to encourage local electric vehicle production. However, the Ministry of Heavy Industries has not yet commented on these initiatives.