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Cabinet Approvals on May 12, 2021

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Cabinet approvals on May 12, 2021On May 12, 2021, the Union Cabinet chaired by Prime Minister Narendra Modi approved several initiatives. They are

  • Production Linked Incentive (PLI) Scheme – ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ with an Total Outlay of INR 18, 100 Crore.
  • Transfer of Land of ITBP (Indo Tibetan Border Police) at Mussoorie to Government of Uttarakhand for Aerial Passenger Ropeway System.
  • Memorandum of Understanding (MoU) between Institute of Chartered Accountants of India (ICAI) & Qatar Financial Centre Authority.

PLI Scheme – Advanced Chemistry Cell (ACC) Battery Storage

The PLI Scheme ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ was proposed by the Department of Heavy Industry, Ministry of Heavy Industries and Public Enterprises.

Objective To incentivise battery makers to manufacture locally, cut import dependence, and also boost Electric Vehicle (EV) adoption.

 

Target To achieve manufacturing capacity of 50 GigaWatt hour (GWh) of ACC and 5 GWh of ‘Niche’ ACC
Total Outlay INR 18, 100 Crore
Time & Incentive for Manufacturing facilities Manufacturing facilities should be commissioned within a period of 2 years, and incentive will be disbursed thereafter over a period of 5 years.

 

Process of Selection ACC battery Storage manufacturers will be selected through a transparent bidding process.
Expected Investment It is expected to bring an investment of around INR 45, 000 Crore in ACC Battery storage manufacturing projects.

Expected Outcomes of PLI Scheme

  • Facilitate demand creation for battery storage in India.
  • Net savings of around INR 2,00,000 Crore – INR 2,50,000 Crore on account of oil import bill reduction due to this programme.
  • Import substitution of around INR 20,000 Crore every year.
  • Boost Research & Development to achieve high specific energy density and cycles in ACC.
  • Promote new and niche cell technologies (target on specific technology for production).
  • It will also help India to reduce its GreenHouse Gas (GHG) emissions.

Target for Manufacturers

  • Each selected ACC battery Storage manufacturer needs to set up an ACC manufacturing facility of minimum 5 GWh capacity.
  • The beneficiary firms must also ensure domestic value addition of at least 25% (also incurring the mandatory investment of INR 225 Crore/GWh) within 2 years & raise it to 60% within 5 years.
  • The incentive amount will increase with increased specific energy density & cycles and increased local value addition.

What are ACCs?

  • ACC are advanced storage technologies which can store electric energy as electrochemical or chemical energy and convert it back to electric energy when required.
  • India will greatly benefit from the local manufacturing as dominant battery technologies will control some of the world’s largest growth sectors.
  • Globally consumer electronics, electric vehicles, electricity grids, solar rooftops which are major battery consuming sectors are expected to achieve strong growth in future.

Transfer of ITBP’s Land for Aerial Passenger Ropeway System

The cabinet accorded approval to the transfer of 1500 square metres of land belonging to Indo-Tibetan Border Police (ITBP) at Mussoorie to the Uttarakhand government for construction of  ‘Aerial Passenger Ropeway System’ between Dehradun & Mussoorie.

  • Estimated Construction cost of the Aerial ropeway is INR 285 Crore. It will be built under Public Private Partnership (PPP) mode.
  • The ropeway will be a mono-cable ropeway of 5580 meters length and will be capable of carrying 1000 persons per hour per direction.
  • The project will cover the regions of Purkul Gaon, Dehradun (Lower Terminal Station) and Library, Mussoorie (Upper Terminal Station).

Benefits

  • It is expected to reduce the traffic flow on the road route between Dehradun & Mussoorie.
  • Generate direct employment to 350 people and indirect employment to more than 1500 people.
  • Boost the Tourism Industry in Uttarakhand.

MoU between ICAI & Qatar Financial Centre Authority (QFCA)

The cabinet approved the signing of MoU between ICAI & QFCA. It aims to enhance cooperation between the two institutes to strengthen the Accounting Profession and entrepreneurship base in Qatar.

  • ICAI has a strong membership base of over 6000 members in the Middle East & Qatar (Doha) Chapter.
  • It is actively involved in the support and development of the accounting profession in Qatar.
  • The MoU will help ICAI to get better recognition, support Indian businesses which aim to do business in Qatar and support the growth of Qatar and India’s economies.

Implementation strategy and Targets

It will increase opportunities for members of ICAI to provide professional services in Qatar in the areas of assurance and auditing, advisory, taxation, financial services and allied areas.

  • ICAI through collaboration with QFCA will conduct a training programme for Qatar professionals, entrepreneurs and students.
  • ICAI & QFCA will explore opportunities for Indian businesses by organizing roundtables, networking events.
  • They will collaborate on opportunities in the field of corporate governance, technical research and advice, forensic accounting, Islamic Finance, Continuing Professional Development (CPD) and others.

Highlights

  • ICAI has an active Chapter in Doha, Qatar (established in 1981), it is the oldest among the 36 overseas Chapters of ICAI.
  • ICAI is a statutory body established by the parliament through ‘The Chartered Accountants Act, 1949’ to regulate the profession of Chartered Accountancy in India.
  • QFCA an independent legal entity established pursuant to Law No. (7) of 2005, it is responsible for development and promotion of QFC as a world-class financial & business centre in Qatar.

Recent Related News:

i.On March 31, 2021, the Union Cabinet approved the Central Sector Scheme – ‘Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)’ with a total outlay of INR 10, 900 Crores.

ii.On April 21, 2021, the Union Cabinet approved the Mutual Recognition Agreement (MRA) between ICAI & Certified Practising Accountant (CPA), Australia.

About Ministry of Heavy Industries and Public Enterprises

Union Minister – Prakash Javadekar (Rajya Sabha, Maharashtra)
Minister of State – Arjun Ram Meghwal (Lok Sabha – Bikaner, Rajasthan)

About Indo-Tibetan Border Police (ITBP)

Director General – S S Deswal
Head Office – New Delhi

About Institute of Chartered Accountants of India (ICAI)

President – Nihar N Jambusaria
Head Office – New Delhi

About Qatar Financial Centre Authority (QFCA)

Board Member & CEO – Yousuf Mohamad Al-Jaida
Headquarters – Doha, Qatar