FEBRUARY 20259EV BATTERY DEMAND PROMPTS GOVERNMENT TO INCENTIVIZE BATTERY MAKERSBP TO AID ONGC TO BOOST OUTPUT FROM MUMBAI HIGH FIELD BY 60 PERCENTAs the EV industry and demand for energy storage grows, Nunns highlights that the government is considering incentives for locally manufacturing battery components. At the time of writing this report, the Ministry of Heavy Industries is evaluating which components of batteries, such as cathode, anode, electrolyte, and adhesive, require funding. Such discussions are in tune with today's production-linked incentive or PLI scheme that envisages pep-up domestic production."Discussions are underway, but the scheme is not finalized yet. A call on the quantum of sops will be taken at a later stage," said a senior government official. This move reflects the government's commitment to reducing import dependency and strengthening the local ecosystem for electric mobility and battery storage.The Centre's National Programme on Advanced Chemistry Cell (ACC) Battery Storage, launched in 2021, aims to build a manufacturing capacity of 50 GWh of ACC and 5 GWh of Niche ACC, with a budget of 18,100 crore. As part of this initiative, the first round of ACC PLI bidding concluded in March 2022, with key players such as Ola Cell Technologies and Reliance Industries securing significant capacities.Furthermore, the government has introduced a viability gap funding scheme for battery energy storage systems (BESS) with 3,760 crore in support for a 4 GWh target by 2030-31.Highlighting the challenges in component manufacturing, an industry official mentioned that while graphite to anode production is easier, more complex components like cathodes could warrant higher incentives. Vimal Anand, Joint Secretary, Ministry of Commerce & Industry, emphasized that while domestic capacity and consumption for batteries have reached a critical stage, export capacity still needs significant development. India's largest oil explorer, Oil and Natural Gas Corporation (ONGC) announced on Wednesday that global energy major BP will act as a technical service provider to enhance production from the Mumbai High field, the country's largest producing oil and gas field, located off the west coast of India. BP has committed to increasing oil and gas output from the Mumbai High field by up to 60 percent, ONGC stated in a regulatory filing. The field, discovered in 1974, had peaked at 471,000 barrels per day (bpd) of oil in March 1985 but saw a significant decline, with output dropping to approximately 134,000 bpd in April 2024.In June 2024, India's government highlighted ONGC's plans to partner with global oil majors to boost production. In September, BP's board held discussions with India's Oil Minister, Hardeep Singh Puri, emphasizing foreign participation in exploration programs."We look forward to bringing our long experience of optimizing performance and recovery from major mature fields around the world to help unlock and enhance production from Mumbai High," the company said in a statement.BP already has a significant presence in India through its partnership with Reliance Industries, operating 1,900 fuel retail stations and producing oil and gas from a deepwater block in the Krishna-Godavari basin. The ONGC-BP partnership marks a key step toward revitalizing the Mumbai High field and aligns with India's goals to accelerate domestic energy production. The technical expertise provided by BP could set a precedent for further collaborations between Indian energy firms and global oil majors.
< Page 8 | Page 10 >