Official Gazette Notification Text
Official TranscriptSelection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses REQUEST FOR PROPOSAL For Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage...
Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses REQUEST FOR PROPOSAL For Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme
Date: 22 September 2026 RESPONSE TO THE QUERIES S.
Query Response No.
Document: RFP, PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: RFP Cl. definition of “Brownfield Project”, 2.2.4; PA Cl. 4.3, 6.2.5, 11.1.4, Schedule-P):
1.
Kindly clarify whether a manufacturing facility established after the Bid Due Date but before issuance of the LOA will qualify as a Brownfield Project. Further, kindly clarify the treatment of shared utilities/infrastructure in a Brownfield Project and the applicability of Schedule-P baseline investment/status requirements where the Beneficiary Firm is an SPV.
Document: RFP, PA Provisions of the bid documents shall prevail.
Query (Clause: RFP Cl. definition of “Brownfield Project”, 2.2.4; PA Cl. 4.3, Schedule-P):
2.
We would like to submit that a bidder who already has land, buildings, utilities, clearances and trained manpower in place is naturally able to commit output in the earlier and more heavily weighted quarters, which a new unit is not placed to do.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: RFP Cl. definition of “Brownfield Project”; PA definition of Investment”):
3. Where a Selected Bidder has already commenced setting up a dedicated ACC production line at a facility, but such facility has not commenced commercial production of ACCs as on the date of the LOA, may such a facility be treated as a Greenfield Project — such that the Investment is reckoned on the basis of capitalisation of the relevant plant, machinery and associated Page 1 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. infrastructure in the Beneficiary Firm’s books of account, rather than being restricted only to expenditure incurred strictly on or after the date of the LOA / SPV incorporation?
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: definition of “Brownfield Project”):
Inclusion of “under construction facility” facility in Brownfield Project definition
Suggestion: This definition to be edited from “….an existing ACC manufacturing facility in which the Selected Bidder……” to “….an existing ACC manufacturing facility (where the
4. facility is either under construction where investments have been incurred fully /or partially but commercial cell production has not yet commenced, or it has already commenced commercial cell production) in which the Selected Bidder….”
Rationale: Battery cell giga-factory projects require long duration (2-4 years) to set up and start commercial production, where facilities which are under construction but yet to start manufacturing should also be counted as brownfield projects.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 1.1.3):
5. "We request Tendering authorities to kindly confirm the timeline considered of 2 and 5 years is from the appoint date i.e. the date on which the agreement will be signed between the Successful bidder and Ministry of Heavy Industries. Also, kindly confirm that the period of 2 years for value addition is the time period given to bidder for setting up of manufacturing facility."
Document: RFP Provisions of the bid documents shall prevail.
6. Query (Clause: 1.1.3):
Kindly confirm if there is any fix timeline to sign this agreement with state govt.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 1.1.3):
7.
Kindly confirm if bidder changes the location at later stage, will this agreement be allowed to revise and resubmit accordingly.
Page 2 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 1.1.3):
Existing Provision:
Bidders may separately negotiate additional State incentives via the Tripartite Agreement; the
8.
Government retains the right to seek amendment of the negotiated Tripartite Agreement.
Kindly confirm in writing that fiscal incentives extended by a State Government under the Tripartite Agreement (or a separate State industrial policy) will not be netted off, set off against, or otherwise reduce the central Subsidy payable under the Programme Agreement - i.e. that no anti-stacking condition applies between Central and State incentives.
Document: TA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: RFP Cl. 1.1.3, Appendix-XV; TA Cl. 7.3.2):
9.
Please clarify whether the timeline of [•] months specified is for the State Government to set up the single-window clearance mechanism, or for the State Government to actually grant clearances / Applicable Permits to the Beneficiary Firm.
Document: RFP, PA, TA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: RFP Cl. 1.1.3; PA Cl. 4.2, 4.3):
10. Kindly confirm whether the Bidder may change the Project location after securing the Project, and whether the Tripartite Agreement may be amended or re-executed with a different State if the Project location is changed before the Appointed Date. Kindly also clarify the approvals required for such change.
Document: RFP, PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: RFP Cl. 1.1.3; PA Cl. definition of “Mother Unit”, 6.2.4):
11.
Clause 6.2.4 requires completion of Committed Capacity within 2 years, while the definition of “Mother Unit” (and RFP Clause 1.1.3) requires the same within 5 years — an apparent contradiction. Please clarify; we submit it should be 5 years.
Page 3 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Document: RFP, PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: RFP Cl. 1.1.3, PA Cl. Schedule-E):
It is requested to clarify the methodology for determination of Value Addition (%) for different ACC chemistries and technologies, particularly Flow Battery technologies such as Vanadium Redox Flow Batteries (VRFBs).
Specifically, kindly clarify: a. Whether the methodology prescribed for calculation of Value Addition is intended to apply uniformly across all ACC technologies or whether technology-specific approaches would be prescribed for Flow Battery technologies.
b. Whether a prescribed standard list of eligible domestic manufacturing and processing activities, along with eligible materials/components is required to be considered towards Value Addition.
12. c. For imported critical raw materials and components that may not presently have significant domestic manufacturing capability (such as vanadium compounds/electrolyte and other technology-specific materials), whether the Government will prescribe a standard valuation methodology, benchmark prices or reference rates for determination of imported material.
d. Whether any specific methodology would apply for determining Value Addition at the ACC cell level where the Company is only engaged in battery pack or system-level manufacturing, particularly for Flow Battery technologies, under Schedule E Clause 3(h).
e. Whether MHI proposes to issue detailed guidance, illustrative examples or standard operating procedures for Value Addition calculations to ensure uniform interpretation and implementation across all technologies.
f. Whether domestic processing and conversion activities undertaken in India in relation to imported critical raw materials (including beneficiation, purification, electrolyte preparation, electrode manufacture, stack assembly and other cell manufacturing processes) shall qualify towards Value Addition under the Scheme.
Document: RFP Provisions of the bid documents shall
13. prevail.
Query (Clause: 1.2.1):
Page 4 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
It is requested to clarify whether ACCs manufactured in India and exported outside India would be eligible for subsidy under the Scheme, provided such ACCs satisfy all investment, value- addition and other eligibility requirements prescribed under the RFP and Programme Agreement.
Document: RFP, PA Provisions of the bid documents shall prevail.
Query (Clause: RFP Cl. 1.2.1; PA Cl. 8.3, 10.2, 11.1.2):
Clause 10.2 conditions commencement of Subsidy disbursement on the Beneficiary Firm
14. exceeding 25% Value Addition within 2 years, whereas Clause 8.3 (and Clause 11.1.2) and RFP Clause 1.2.1 contemplate the Beneficiary Firm receiving Subsidy even where it achieves less than the Committed Value Addition (subject to deficit adjustment). Please clarify this apparent contradiction.
Document: RFP, PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: RFP Cl. 1.2.1, 3.3.5; PA Cl. 10.3, 11.1.2, 11.5):
15. Kindly clarify the Subsidy entitlement period, as RFP Clause 1.2.1 refers to a 5-year Subsidy period, whereas PA Clause 10.3/11.1.2 refers to Subsidy availability up to the 7th year, subject to fulfilment of Milestone-2 conditions. Kindly confirm whether Subsidy can actually be availed during Contract Years 6 and 7, and, if so, the applicable conditions and phasing.
Document: RFP The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 1.2.1):
Kindly confirm:
16.
(i) whether TDS is applicable on the ₹4,50,000 RFP cost and, if so, the applicable rate and section;
(ii) whether GST is payable in addition to the ₹4,50,000 amount or is included therein; and
(iii) whether a tax invoice bearing the applicable GSTIN will be issued for such payment, and clarify whether the invoice will be issued by the Ministry of Heavy Industries or IFCI Ltd.
Document: RFP, PA Provisions of the bid documents shall
17. prevail.
Query (Clause: RFP Cl. 1.2.1; PA Cl. 6.2.8, 10.2):
Page 5 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Document Text: Article 10, Clause 10.3, Page 28 “The Subsidy disbursement shall be provided for a period not exceeding 5 (five) years from the date of the issuance of Milestone 1 Completion Certificate and shall be disbursed on a quarterly basis. The Beneficiary Firm shall maintain the Committed Capacity and Value Addition as per Milestone 2 Completion Certificate to be eligible for Subsidy in 6th (sixth) and 7th (seventh) year.”
Query:
Where the Beneficiary Firm commissions its facility within 1 year (4 quarters) from the Appointed Date and thus becomes eligible for subsidy from the 5th quarter under the phasing schedule (RFP Cl. 1.2.1), please confirm that (i) subsidy attributable to eligible sales in quarters 5–8 (before the outer 2-year Milestone 1 deadline) accrues from the 5th quarter, and (ii) disbursement of such accrued subsidy is released after issuance of the Milestone 1 Completion Certificate (whether early or at the deadline), so that Beneficiary Firms commissioning ahead of schedule are not deprived of subsidy on early-quarter sales. Kindly Confirm.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 1.2.1):
Consortium Structure & Credentials: We request clarification on whether the technical
18. credentials of a non-Lead Member (such as an established global cell manufacturer providing process know-how and operational support) can be considered for demonstrating the Project's overall technical capability, given Clause 1.2.1 states only the Lead Member's credentials are considered for qualification criteria.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 1.2.2):
19.
We request you to kindly amend the requirement of BG in context of the maximum capacity which a bidder applies for the PLI and per GWh BG amount may be defined in the same way in which Net Worth requirement is defined.
Document: RFP Provisions of the bid documents shall
20. prevail.
Query (Clause: 1.2.2):
Page 6 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Kindly request to accept Insurance Security Bonds (ISB) also for Bid Security of INR 10Cr to participate in the Bid. ISB are recognized instruments of security by Min of Finance and are widely accepted for various Govt tenders. Hence kindly request to accept ISB as mode of security and also share format for the same.
Document: RFP, PA Provisions of the bid documents shall prevail.
Query (Clause: RFP Cl. 1.2.2, 2.23.1, Appendix-VII; PA Cl. 7.1.1, Schedule-F):
21. Kindly consider permitting IRDAI-regulated Insurance Surety Bonds as an acceptable alternative to a bank guarantee for both the Bid Security and the Performance Security considering that ISB have been recognized as valid instrument by IRDAI & MoF and also, MNRE/MoP have recognized it as valid instrument under RE projects.
Document: RFP, PA Provisions of the bid documents shall prevail.
Query (Clause: 1.2.2, 7.1):
Document Text: "…the Bidder shall furnish a Bid Security of INR 10,00,00,000 (Rupees ten crore) in the form of a bank guarantee… the Beneficiary Firm shall furnish a Performance Security equivalent to INR 10,00,00,000 (Rupees ten crore) per GWh of Committed Capacity, subject to a maximum of INR 40,00,00,000 (Rupees forty crore), in the form of a bank guarantee."
22.
Query:
Please confirm that (i) an unconditional and irrevocable surety bond issued by an IRDAI- regulated Indian insurer, in a form acceptable to the Ministry, is a permissible alternative to a bank guarantee for both the Bid Security under RFP Clause 1.2.2 and the Performance Security under PA Clause 7.1; and (ii) the Ministry shall publish the specimen form for such a surety bond in due course. If any additional conditions apply (minimum insurer credit rating, format specifications, or restrictions to either the Bid Security or Performance Security), please specify.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 2.2.1, 2.2.3):
23.
Whether the group company holding more than 50% stake in the Company would be regarded as an Associate and the net worth of such group company would be included while computing the Page 7 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
150cr per GWh net worth? In such a case whether the bid can be filed individually by the Company and not as a consortium?
Document: RFP, PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: RFP Cl. 2.2.1; PA definition of “Investment”):
Document Text: Article 1, “Investment” definition, Page 8–9 “It is expressly clarified that Investment shall, for the purpose of the Programme Agreement, be limited to expenditure incurred by the Beneficiary Firm in respect of the Mother Unit on and from (a) where the Beneficiary Firm is an SPV, the date of incorporation of such SPV; and (b) where the Selected Bidder itself is the Beneficiary Firm, the date of issuance of the LOA.”
24.
Query:
Please confirm that a Bidder is permitted to place orders for machinery and other plant-related material requirements at any time prior to the Bid Submission date, and that such prior placement of orders shall not affect (i) the Bidder's eligibility or evaluation under the RFP, or (ii) the counting of such investment toward Milestone-1 — provided payment transaction and capitalisation of the said machinery and materials occur on or after the Appointed Date (in the case of an SPV) or the date of issuance of the LOA (in the case of the Selected Bidder itself as Beneficiary Firm), consistent with the clarification provided at the Pre-Bid Conference on 29- Jul-2026.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 2.2.1, 2.2.3, 2.2.10, Appendix-IV):
Net Worth / Financial Eligibility (Clauses 2.2.1, 2.2.3, 2.2.10 and Appendix- IV): We propose to establish a Battery Manufacturing SPV between JEM and a third party investor, wherein JEM is
25. a subsidiary of JWL and JWL will extend financial support to the SPV. Kindly clarify whether, for the purpose of the Net Worth requirement of INR 150 crore per GWh of Committed Capacity, the Net Worth of JWL (as an Associate exercising control over JEM) can be considered, or whether the requirement must be independently met by JEM, the third-party investor, or the proposed SPV. Kindly also clarify the applicable treatment where the Bid is submitted as a Consortium with JEM as Lead Member.
Page 8 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 2.2.1, 2.2.3, 2.2.10, Appendix-IV):
Land Availability: We are currently evaluating land parcels with various State Governments and
26. other parties, and it is possible that the land parcel may not be finalised as on the Bid Due Date.
Kindly clarify whether finalisation of land is mandatory at the Bid stage, and whether any specific land details or documents are required to be submitted along with the Bid, particularly noting that the Investment requirement under the Programme Agreement excludes the cost of land.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 2.2.1, 2.2.3, 2.2.10, Appendix-IV):
Value Addition Commitment (Appendix-V and Schedule-M of the Programme Agreement): For
27. the Committed Value Addition to be quoted in the Technical Bid, kindly clarify whether Bidders are required to submit any proposed raw material/component vendor details, vendor commitments, MoUs or quotations at the Bid stage, or whether such arrangements may be finalised subsequently during the Programme period, subject to achievement of the committed Value Addition milestones.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 2.2.1, 2.2.3, 2.2.10, Appendix-IV):
28.
CAPEX Quotations: Kindly clarify whether vendor quotations for Plant & Machinery or other major CAPEX items are required to be submitted along with the Bid or any accompanying project report. If so, kindly confirm whether budgetary quotations would be acceptable at the Bid stage.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 2.2.1, 2.2.3, 2.2.10, Appendix-IV):
Capital Investment vis-à-vis Net Worth: The RFP prescribes a minimum Net Worth of INR 150
29. crore per GWh of Committed Capacity (Clause 2.2.3), while the Programme Agreement separately prescribes a minimum Investment of INR 150 crore per GWh (excluding land) within 2 years of the Appointed Date. Kindly confirm that these are two distinct requirements. Further, kindly clarify whether the capital investment obligation may be funded through a combination of Page 9 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. equity/capital infusion and bank/project debt, and whether bank finance utilised towards eligible project CAPEX would qualify towards the INR 150 crore per GWh Investment requirement.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 2.2.1):
Clause 2.2.1(b) refers to a formal intent to form a consortium, while Clause 2.2.10(f) requires
30. submission of a Joint Bidding Agreement. It is requested to clarify whether a detailed Joint Bidding Agreement is mandatorily required at the bid submission stage, or whether a Letter of Intent/Memorandum of Understanding between the consortium members would be considered adequate.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 2.2.1):
31.
As consortiums are often formed to pool financial and technical strengths, it is requested to consider allowing the Net Worth eligibility criteria to be assessed on the basis of the aggregate Net Worth of the Consortium, rather than solely that of the Lead Member Provisions of the bid documents shall
Document: RFP prevail.
Query (Clause: 2.2.3):
Kindly clarify whether the minimum net worth requirement of ₹150 crore per GWh is to be
32. calculated proportionately based on the Committed Capacity. For example, if a bidder commits 2 GWh, will the required net worth be ₹300 crore? Recommendation:- Reduce the minimum Net Worth requirement from ₹150 crore per GWh to ₹100 crore per GWh to encourage wider participation and improve competition while maintaining project viability.
Document: RFP The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 2.2.3):
33.
Where the financial eligibility is met using the net worth of an Associate/Group Company, will such Associate Company be mandatorily required to become a member in the SPV, or can its financial credentials be relied upon without becoming an equity participant? Page 10 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 2.2.3, 3.1.1):
RFP Cl. 2.2.3 and 3.1.1 fix the Net Worth threshold for this round at Rs. 150 crore per GWh,
34. as against Rs. 225 crore per GWh {with a flat Rs. 1,500 crore total-net-worth alternate route for bidding any capacity) confirmed in both the 2021 and 2024 A.CC PLI tenders.
It is requested that MHI consider restoring the Net Worth requirement to the earlier level {�225 crore per GWh) to ensure a level playing field amongst all the bidders across rounds.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 2.2.3, 3.1.1):
The RFP prescribes that a Bidder shall have a minimum Net Worth of ₹150 Crore per GWh of overall Committed Capacity to be eligible for participation. We understand this threshold has been calibrated with reference to the CAPEX profile of Lithium-ion gigafactories, where the per- GWh installed CAPEX is typically in the range of ₹700- ₹1,000 Crore.
However, the CAPEX profile of a Vanadium Redox Flow Battery manufacturing facility is materially different. A 1 GWh per annum VRFB manufacturing plant, based on our detailed engineering assessment and benchmarked against operating VRFB stack facilities globally, requires an equipment CAPEX in the range of ₹90-₹100 Crore, excluding land. The lower
35. CAPEX intensity is a direct consequence of VRFB's simpler stack architecture, absence of dry- room requirements, no thermal runaway safety systems, and modular tank-and-stack assembly.
Om Power Transmission Limited is fully willing and able to -commit an investment of ₹150 Crore per GWh. However, we respectfully submit that the current Net Worth threshold, calibrated to Lithium-ion CAPEX, results in a disproportionate financial-capacity barrier for genuine VRFB bidders – despite VRFB being fully aligned with the Scheme's stated objective of indigenous manufacturing and higher domestic value addition.
In this regard, we submit the following alternate proposals for the Ministry's kind consideration: • Reduce the minimum Net Worth requirement for bidders proposing V�FB (or other flow battery) chemistries from ₹150 Crore per GWh to ₹100 Crore per GWh, in line with the actual CAPEX intensity of the technology.
Page 11 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. • Alternatively, permit' the value of the land dedicated to the Project (whether owned or on long-term lease) to be included while computing the Net Worth threshold under Clause 2.2.3.
• Alternatively, permit the cost of the vanadium electrolyte inventory - which constitutes 40-50% of the total VRFB system cost and can be treated as a re-usable asset with residual value - to be counted towards the Net Worth threshold.
• Alternatively, permit a chemistry-specific Net Worth threshold to be notified, so that CAPEX-light chemistries such as VRFB are not disqualified purely on account of a threshold designed for a different technology.
We wish to further submit that VRFB technology offers a compelling advantage on the domestic value addition front - which is one of the core objectives of the Scheme: • VRFB permits domestic value addition of 60%+ from the very first year of operations, on account of localised stack assembly, tank fabrication, and BOP integration.
• Within 3 years, we conservatively expect to reach 80%+ domestic value addition, subject to phased indigenisation of the vanadium electrolyte processing supply chain in India. • This significantly exceeds the RFP's Value Addition targets of 25% in 2 years and 40% in 5 years under Clause 3.2.1.
Clarification / Request:
We respectfully request the Ministry to reconsider the ₹150 Crore per GWh Net Worth threshold for VRFB bidders, either by reducing the threshold to ₹100 Crore per GWh, or by permitting land, electrolyte inventory, or an equivalent mechanism to be included in the Net Worth computation. This will ensure that genuine, well-capitalized VRFB manufacturers are able to participate meaningfully - enabling the Scheme to catalyse the very technology diversification and higher localization it seeks to promote.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 2.2.4, 3.4.2):
36.
This round restricts allocation to a single Bidder to a maximum of 4 GWh (Cl. 3.4.2); however, Cl. 2.2.4 permits Bidders from the Previous Tenders to hold up to 20 GWh cumulatively across all rounds of the Programme.
Page 12 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
It is requested that the cumulative capacity permitted to any single Bidder/Group {including its Associates) across all rounds of the Programme (Previous Tenders and this RFP, taken together) be capped consistent with the maximum per-Bidder allocation prescribed for this round - 4 GWh {currently prescribed limit) or the limit to which it is modified - to ensure a level playing field amongst Bidders in this round.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 2.2.4):
2.2.4 Bidders who have participated in the tenders dated (i) 22 October 2021 bearing reference no. 01(05)/2019-AEI (19587); and (ii) 24 January 2024 bearing reference no. 12(59)/ 2023-AEI
(26205), issued under the Programme Previous Tenders to participate in this Bidding Process,
provided that, the maximum capacity that may be allocated to such bidders, inclusive of capacity allocated under the Previous Tenders and this RFP, shall not exceed 20 (twenty) GWh. Provided
37. further that, subject to such limitation, where the Selected Bidder proposes to utilize a Brownfield Project, such Selected Bidder shall ensure that appropriate ring-fencing mechanism is put in place, including (i) clear physical separation between the existing Brownfield Project and the Dedicated Facility; and (ii) maintaining separate books of account and records for the Dedicated Facility to ensure clear identification of Investments made under the Programme Agreement.
Provided that any contract executed before the LOA will not be part of appraisal of minimum investment of INR 150 per GWh and the new bid capacity should come exclusively from the new ring fenced investment
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 2.2.4):
Existing Provision:
38.
Previous PLI Beneficiaries Bidder's Pre-Bid Query / Suggested Clarification:
Bidders participating in the 2021/2024 Previous Tenders are permitted to participate, subject to an aggregate allocation ceiling of 20 GWh including their previous allocation. Please clarify Page 13 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. whether any priority or preference is envisaged for new bidders who have no capacity allocated under the Previous Tenders, considering that the present RFP is intended to create additional domestic manufacturing capacity.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 2.2.4):
Existing Provision:
Fulfilment of Previous Allocation
39.
Bidder's Pre-Bid Query / Suggested Clarification:
Where a Previous Tender bidder has not yet fulfilled/commissioned its previously allocated capacity, please clarify whether it is nevertheless permitted to seek allocation under the present RFP, or whether fulfilment of the earlier committed capacity should be a prerequisite for allocation of additional capacity under the present RFP.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 2.2.5):
For the purpose of technical and financial evaluation as per RFP, we request you to please clarify as below – 1. The maximum ceiling of Committed Capacity is 4GWh as defined for technical evaluation. However, if a bidder bids for the Committed capacity less than the maximum ceiling capacity of 4GWh, then for evaluation purpose please confirm that basis of marking shall be done based on the committed capacity quoted by the bidder and not the maximum ceiling capacity as
40. per RFP. Clarity is required since nowhere it is mentioned in the RFP as how the marking or the weightage for capacity quoted would be given, if Committed Capacity is less than the maximum allowed capacity of 4GWh. We request to kindly clarify that marking is based on the Committed Capacity by individual bidder so that the evaluation is based on the fulfilment of the committed capacity and Capacity markings for both Milestone achievements are done accordingly. 2. The Energy Efficiency parameters as given in payment of subsidy calculation should also be considered for Technical Evaluation purposes as Energy Efficiency parameters will also help in qualification of quality cells under the scheme and hence should be part of technical evaluation also.
Page 14 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Document: RFP The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 2.2.8, 2.15.2(ii), Appendix II):
41.
For signing of the Application and Bid, Board Approved Resolution to be also considered as an approved document for authorized company personnel
Document: RFP The relevant provisions of the bid documents are self-explanatory.
Query (Clause: RFP Cl. 2.2.10; PA Cl. definition of “Investment”, 4.3):
(a) Confirmation that a Selected Bidder which is a company incorporated under the Companies Act 2013 may execute the Programme Agreement and implement the Project itself, without
42. incorporating a special purpose vehicle.
(b) Whether any clarification issued at the Pre-Bid Conference held on 29 July 2026 requires the incorporation of a special purpose vehicle notwithstanding Clause 2.2.10. The point is material because the date from which Investment is recognised differs between the two structures, and bidders must fix the structure before the Bid is submitted.
Document: RFP The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 2.2.13):
43. Does this clause applicable to bidders who are till date non performers in previous similar RFP of January 2024 by MHI? As if previous non performers are allowed to participate then as per this clause it is likely to cause material adverse impact on the implementation of the Project due precedence experience with the non performer bidder
Document: RFP, PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: RFP Cl. 2.2.15, 2.2.17, 2.9.3, 2.23.6, Appendix-I):
44. Kindly confirm whether the Bidder is required to proactively disclose a new transfer-of- technology or joint venture arrangement entered into after Bid submission, and whether a cure period will be provided to complete the required registration before any disqualification or forfeiture of Bid Security.
45. Document: RFP Page 15 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Query (Clause: 2.2.15, 2.2.15): Provisions of the bid documents shall prevail.
Clause 2.2.15 provides that where 25% or more shareholding or control is held by persons resident outside India, qualification shall be subject to approval of the Government from a national security and public interest perspective. It is requested to clarify:
(a) whether such approval requirement applies to all foreign-owned/controlled entities or only in specific cases identified by the Government;
(b) whether any separate application or approval process is required prior to bid submission; and
(c) whether this requirement is independent of the registration requirement prescribed under Clause 2.2.17 read with the GFR Order applicable to entities from countries sharing a land border with India.
Document: RFP, PA Query not pertaining to the bid documents.
Query (Clause: RFP Cl. 2.2.17, 2.9.3, Appendix-I):
46. Kindly confirm whether technology, licensing or transfer-of-technology (ToT) arrangements originating from (a) Hong Kong and (b) Taiwan would require registration with the Competent Authority under Clause 2.2.17 and the applicable GFR Order, particularly considering the treatment of these jurisdictions under the applicable FDI framework.
Document: RFP The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 2.2.17, 2.9.3, Appendix-I):
Kindly clarify the timeline and process for obtaining registration with the Competent Authority
47. for any transfer-of-technology arrangement entered into after Bid submission. Further, where such registration is pending as on the Bid submission date or is subsequently applied for, kindly clarify how the Bidder is required to complete Appendix-I and confirm that the Bid Security will not be forfeited if the Competent Authority subsequently declines registration for reasons not attributable to the Bidder.
Document: RFP Query not pertaining to the bid documents.
Query (Clause: 2.2.17, Appendix-I, Appendix-IX):
48.
Kindly clarify whether the GFR Order restrictions apply only to the eligibility of the Bidder/Consortium or also to the Beneficiary Firm’s procurement of plant, machinery, equipment Page 16 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. and raw materials during the Term. If the latter, kindly clarify whether registration of each such vendor with the Competent Authority is required.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 2.2.17, Appendix-I, Appendix-IX):
(a) Whether the Ministry confirms that a procurement for the manufacture of Advanced Chemistry Cells for Grid Scale Stationary Storage applications falls within the Category-II The relevant provisions of the bid documents sensitive sector “Power and Energy” at Schedule II of the Order, or within any other sector listed are self-explanatory.
at Schedule I or Schedule II. (b) Whether, in relation to this procurement, the Ministry proposes to exercise the power conferred by paragraph 15(iv) to waive the requirement of registration for a particular item or application, or for a class of items or applications. (c) Whether the Ministry
49. will accept, as at the Bid Due Date, evidence that an application for registration has been filed with the Competent Authority in cases where the registration decision remains pending, having regard to the political and security clearances required under Annexure I to the Order and to the interval between the date of this RFP and the Bid Due Date. (d) Which of the alternative certificates set out at Appendix I, Annex III is to be executed by a domestic bidder which has no transfer of technology arrangement requiring registration under the Order. (e) Ministry of Finance
Order at Appendix IX. Whether our procurement sits in a Category-II sensitive sector, whether the Ministry will exercise the waiver under paragraph 15(iv), and whether a pending registration application will be accepted at the Bid Due Date. This is an eligibility question with the least time available
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 2.2.17):
50. Keeping in view of the recent geo political developments wrt ACC Technology from land border countries, we request you to kindly clearly specify that ACC Technology from land border countries are not allowed to participate in the RFP and also the certificate of origin of the technology proposed in this RFP needs to be mandatorily mentioned in the bid
Document: PA The relevant provisions of the bid documents are self-explanatory.
51. Query (Clause: 2.4, Appendix-I):
Existing Provision:
Page 17 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Parent / Associate Participation Bidder's Pre-Bid Query / Suggested Clarification:
Please clarify whether Parent company can participate in this RFP and form a SPV later if it succeeds.
Document: RFP, PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: RFP Cl. 2.9.3; PA Cl. 5.1(c), 16.1.1 (e)):
52. Kindly clarify the evidence required to establish “requisite technological know-how” at the time of execution of the Programme Agreement, and confirm whether a technology or licensing arrangement concluded after issuance of the LOA but prior to execution of the Programme Agreement would satisfy Clause 5.1(c).
Document: RFP, PA Provisions of the bid documents shall prevail.
Query (Clause: RFP Cl. 2.23.1, Appendix-VII; PA Cl. 7.1.1, Schedule-F):
Clause 2.23.1 of the RFP requires the Bid Security to be furnished in the form of a bank guarantee issued by a nationalised bank or a Scheduled Bank in India having a Net Worth of at least INR 1000 crore, in the format at Appendix-VII. Clause 7.1.1 of the Programme Agreement similarly requires the Performance Security to be furnished by way of an irrevocable and unconditional
53. guarantee from a bank, in the format at Schedule F. We note that in many tenders issued by Government organizations Insurance Surety Bonds as an acceptable instrument towards Bid Security and Performance Security in Government procurement, and that such instruments are issued by insurers regulated under the Insurance Regulatory and Development Authority of India (Surety Insurance Contracts) Guidelines, 2022. We shall be grateful if the Ministry may kindly clarify whether an Insurance Surety Bond, furnished for the prescribed value and validity, may be accepted in lieu of a bank guarantee towards the Bid Security under Clause 2.23.1 of the RFP and the Performance Security under Clause 7.1.1 of the Programme Agreement.
Document: RFP, PA Provisions of the bid documents shall prevail.
Query (Clause: RFP Cl. 2.23.4; PA Article 7):
54.
Kindly clarify whether the Performance Security is to be furnished proportionately based on the Committed Capacity (₹10 crore per GWh) Recommendation:- a)Reduce the Performance Page 18 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Security requirement (e.g., from ₹10 crore/GWh to ₹5 crore/GWh) considering the substantial capital investment already required under the Scheme. b) Permit partial release or reduction of the Performance Security after successful achievement of Milestone 1 and further reduction after Milestone 2 instead of retaining the full amount for the entire seven-year term.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 2.30.1, 2.30.2, 3.2.1):
PA definition of Investment; Brownfield Project / Dedicated Facility Please confirm the
55. complete Conditions Precedent and documentary evidence required for the Appointed Date.
Where the Beneficiary Firm has fulfilled all conditions within its control but the Appointed Date is delayed due to Government approval, Tripartite Agreement, State support, land approval or another matter not attributable to it, will milestones and capacity-linked obligations be correspondingly extended without damages or adverse consequences?
Document: RFP The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 2.30.3):
56.
It is requested to clarify the timeline for issuance of the Letter of Award (LoA) following completion of the bid evaluation process.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: RFP Cl. 2.30.4, Appendix-XI; PA Recital E):
The periods that will be prescribed in the Letter of Award for (a) incorporation and designation
57. of the SPV, (b) execution of the Tripartite Agreement, and (c) execution of the Programme Agreement. The date of incorporation of the SPV determines the date from which Investment is recognised under the Programme Agreement, and is therefore material to the preparation of the Bid.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 3.1.1):
58.
There appears to be a discrepancy between Clause 3.1.1 and Appendix IV.
It is requested to clarify whether Net Worth may be assessed based on either the latest completed Page 19 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. financial year or the latest available certified quarterly financial results for the purpose of demonstrating compliance with the eligibility requirements.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 3.1.1):
Document Text: "A Bidder shall have a minimum Net Worth of INR 150,00,00,000 (Rupees one hundred and fifty crore) per GWh of overall Committed Capacity, as per the capacity specified in its Technical Bid for the Financial Year preceding the date of submission of the Bid as per latest annual/quarterly financials of the bidder duly audited/reviewed by the Statutory Auditor.
The Bid must be accompanied by the audited annual reports of the Bidder (of the Lead Member
59. in case of a Consortium) for the Financial Year, preceding the year in which the Bid is made along with a certificate prepared according to the IFRS or GAAP or IND AS from a statutory auditor specifying the Net Worth of the Bidder"
Query:
We request the Ministry to introduce a technical eligibility criterion under Clause 3.1.1 alongside the net-worth qualification, requiring bidders to demonstrate either of: (i) prior manufacturing experience in ACCs or comparable electrochemical products; (ii) minimum R&D capability — to ensure execution capability alongside financial capacity.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 3.2):
60. It is requested that the Government clarify whether indigenously developed process and/or product patents granted in India in respect of ACC manufacturing technology will be given additional weightage in technical evaluation, over and above the domestic Value Addition already recognised under Schedule M.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 3.2):
61. Keeping in view of the requirement of digitalisation of cells, we request you to kindly amend the clause by including the provision of Digital Adhaar System in the ACC Line under this RFP so that each and every cell produced has genomic intelligence resulting in overall increased lifecycle performance and revenue.
Page 20 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 3.2, Appendix-V):
Existing Provision:
Measurement & Verification of Capacity
62.
Bidder's Pre-Bid Query / Suggested Clarification:
Please clarify the methodology for determining and verifying Committed Capacity (GWh) for technical scoring and subsequent compliance. Will capacity be determined based on installed/nameplate manufacturing capacity, rated line capacity, demonstrated production capacity, or actual production achieved during the relevant period?
Document: RFP Kindly refer Appendix of this document.
Query (Clause: 3.2.1):
It is requested to clarify whether a bidder may propose multiple ACC technologies, chemistries
63. and/or cell formats under the same Committed Capacity, provided that such technologies meet the applicable requirements prescribed under the RFP and Programme Agreement for Grid Scale Stationary Storage applications. Further, kindly clarify whether the Committed Capacity and Value Addition commitments may be fulfilled through a combination of such technologies and formats.
Document: RFP, PA Provisions of the bid documents shall prevail.
Query (Clause: RFP Cl. 3.2.1; PA Cl. 8.3):
Clause 3.2.1 of the RFP prescribes a minimum Value Addition of 25% within two years and 40% within five years, while the technical evaluation rewards Bidders committing Value Addition above these thresholds. Under Clause 8.3, however, Damages are computed against the
64.
Committed Value Addition, with the result that every percentage point committed above the prescribed minimum carries a corresponding downside exposure for the balance of the Term, which may discourage Bidders from committing ambitious levels of indigenisation. It is requested that Damages under Clause 8.3 may be computed by reference to the minimum Value Addition prescribed under Clause 3.2.1 of the RFP, so that Value Addition committed above the floor continues to be rewarded in evaluation without attracting Damages.
Page 21 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Document: RFP, PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: RFP Cl. 3.2.1; PA Cl. 8.3):
We note that the format for the Technical Bid at Appendix-V provides for the Committed Value Addition and the Committed Capacity, and that the format for the Financial Bid at Appendix-VI provides for the Subsidy quoted in INR per kWh. We further note that Clause 11.9.2 of the Programme Agreement refers to the Advanced Chemistry Cell demonstrating the quoted cycle
65. life, that paragraph 1.4.2.1 of Schedule D refers to the number of cycles as specified by the manufacturer, and that the applicable multiplier under the ACC matrix is determined by reference to the Energy Efficiency and cycle life so declared. We shall be grateful if the Ministry may kindly indicate the stage and the format in which the Energy Efficiency and cycle life are to be declared by the Bidder, and whether such declaration is to be made at the time of submission of the Bid or at the time of testing under Schedule D. Guidance on this aspect would assist all Bidders in submitting their Bids in a uniform manner.
Document: RFP, PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: RFP Cl. 3.2.1; PA Cl. 6.2.4, 6.2.8):
Which provision governs the period within which the Committed Capacity is to be achieved. This
66. clarification is required before the capacity phasing at Appendix V can be prepared, as the two readings produce materially different phasing and different exposure under Clause 8.2. Clause
6.2.4 against Clause 6.2.8. One requires the Committed Capacity within two years of the Appointed Date, the other within five. Both are in the Program Agreement. We cannot finalize the Appendix V capacity phasing until we know which governs.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 3.2.1, 3.2.2):
67. On the weights shown in the illustration, the first eight quarters together account for 36 out of the total 60 weight points, i.e. about 60% of the technical score. A unit that is still to be constructed is not in a position to offer any Value Addition or capacity in those quarters, and so a large part of the technical score may remain beyond its reach at the bidding stage itself.
The relevant provisions of the bid documents
68. Document: RFP, PA are self-explanatory.
Page 22 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Query (Clause: RFP Cl. 3.2.2, Appendix-V; PA Cl. 6.2.7, 8.3, 10.2, 10.3, 11.5, Schedule-E):
Kindly confirm that the Beneficiary Firm may prepone Investment and Value Addition and achieve Milestone 1 during the first Contract Year.
Further, kindly confirm:
(i) whether such preponement has no impact other than the applicable Technical Bid scoring;
(ii) whether Subsidy will commence from the quarter in which the Milestone 1 Completion Certificate is issued; and
(iii) how any Value Addition shortfall under Clause 8.3 will be treated where no Subsidy is payable in the relevant quarter, including whether such shortfall will be carried forward and whether such quarter will count towards the 6 consecutive quarters under Clause 16.1.1(d).
Document: RFP, PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: RFP Cl. 3.2.2, Appendix-V; PA Cl. 8.3, Schedule-K, Schedule-M):
69.
Kindly clarify whether the quarterly Value Addition phasing committed in the Technical Bid may be revised with prior approval of the Government during implementation, provided the minimum 25% and 40% Value Addition milestones and the overall committed Value Addition are achieved.
Document: RFP The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 3.3):
Document Text: "The bidder may quote base Subsidy up to a ceiling of INR 1,500 per kWh, subject to the ACC matrix at Clause 3.3.2 for cycle life and energy efficiency. The notation 'A' indicates the base Subsidy quoted by the bidder in the Financial Bid, and higher matrix positions
70. are indicated as multiples such as A × (1.2), A × (1.2)² and so on up to A × (1.2)⁴."
Query:
We understand that the ₹1,500/kWh ceiling under Clause 3.3 applies to the quoted base subsidy "A" only. Actual subsidy payable shall be arrived at based on Formula as defined in Schedule-E of the Programme Agreement. Also, the Actual Subsidy Payable shall be subjected to the ceiling as per Clauses 11.7 and 11.8 (i.e.at 20% of the aggregate sales over the Program Period and INR 362 Crores per GWh). Kindly confirm.
Page 23 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Document: RFP The relevant provisions of the bid documents are self-explanatory.
Query (Clause: RFP Cl. 3.3.2; PA Cl. 11.7, 11.8):
71.
Kindly clarify the order of application and interaction between the INR 1,500/kWh quote ceiling, the 20%-of-sale-price cap, the INR 362 crore/GWh cap and the Energy-Efficiency × Cycle-Life multiplier.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 3.3.2):
RFP Cl. 3.3.2 fixes the Subsidy ceiling for this round at Rs. 1,500 per kWh (any Bid quoting above this is rejected), as against the Rs. 2,000 per kWh ceiling confirmed in both the 2021 tender (ref. 01(05)/2019-AEI, Cl. 3.3.2) and the 2024 tender (ref. 12(59)/2023-AEI, Cl.
72.
3.3.2).
It is requested that MHI consider retaining the subsidy/incentive ceiling of ₹2.000 per kWh and the incentive disbursement schedule as provided in the 2021 and 2024 ACC PU tenders, in place of the reduced limit proposed in the present RFP, to ensure a level playing field amongst bidders across rounds, considering forex fluctuations in that past few years.
Document: RFP Provisions of the bid documents shall prevail.
73. Query (Clause: 3.3.2):
The maximum subsidy cap should be increased from INR 1,500/kWh to INR 2,000/kWh.
Document: RFP, PA Provisions of the bid documents shall prevail.
Query (Clause: RFP Cl. 3.3.2, 3.3.3; PA Cl. 10.2, 11.5, 11.8, Schedule-G, Schedule-E):
Existing Provision:
RFP Cl. 3.3.3 and PA Schedule G both fix a minimum Cycle Life of ≥4,000 cycles (at ≥75%
74.
Energy Efficiency) as the technical floor for a compliant ACC.
Bidder's Pre-Bid Query / Suggested Clarification:
Kindly clarify that the ₹1,500/kWh ceiling applies to the base Subsidy (A) quoted in the Financial Bid, while the applicable Schedule G performance multiplier and subsidy phasing are Page 24 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. subsequently applied for determining the Effective Subsidy. In such case, please clarify how the resulting Effective Subsidy is reconciled with the ₹362 crore/GWh cumulative cap under Clause
11.8.
Considering that the Scheme provides higher incentives for higher-performing ACCs, kindly consider suitably enhancing the ₹362 crore/GWh cumulative cap in proportion to the applicable Schedule G performance multiplier, so that the performance-linked incentive can be effectively realised.
Please consider aligning the cumulative cap with the performance-linked subsidy mechanism under Schedule G.
Document: RFP The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 3.3.3):
The Performance Multiplier Matrix under Clause 3.3.3 evaluates bidders across two axes - "Energy Efficiency{%)" ranging from >= 75% to >= 95%, and "Cycle Life" ranging from>= 4,000 to>= 12,000 cycles. The Note appended to Clause 3.3.3 states:
"Note: It is expressly clarified that the ACCs manufactured shall have a minimum technical specifications viz. Energy Efficiency and Cycle Life as provided in the matrix above." However, the RFP does not define the term "Energy Efficiency" anywhere in the document or the Glossary. .This is a critical ambiguity for our participation, as the numerical value of Energy
75.
Efficiency for the same battery system can vary significantly depending, on the boundary at which it is measured. We request the Ministry to kindly provide a formal definition of "Energy Efficiency", specifically addressing the following sub-points:
• Whether Energy Efficiency is to be measured at the cell/stack level as DC-to-DC round- trip efficiency, or at the complete system level as AC-to-AC round-trip efficiency after the Power Conversion System (PCS).
• Whether auxiliary power consumption-including pumps, thermal management, BMS, HVAC, and control electronics - is required to be included in the numerator/denominator of the Energy Efficiency calculation, or whether such parasitic loads are to be excluded.
Page 25 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. • The reference test standard (e.g., IEC 61427-2, IEC 62933, or equivalent), state of charge window, C-rate, and ambient.conditions under which Energy Efficiency shall be measured, verified, and reported.
• Whether the same measurement boundary and standard shall uniformly apply across all ACC chemistries -Lithium-ion, Sodium-ion, and Flow Batteries - so, that bidders are evaluated on a like-for-like basis.
Clarification /Request:
We respectfully request that the Ministry issue a clear, chemistry-neutral definition of "Energy Efficiency" - preferably measured on a DC-to-DC basis at the stack/cell level, excluding auxiliary loads, and against a specified IEC standard - so that VRFB and other emerging chemistries are evaluated fairly and consistently under the Performance Multiplier Matrix.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 3.3.3):
The Performance Multiplier Matrix in Clause 3.3.3 currently caps the Cycle Life axis at ">=12,000 cycles". While this range appropriately covers Lithium-ion and Sodium-ion chemistries, it does not adequately recognise the intrinsic long-life advantage of Vanadium Redox Flow Batteries.
The Unique Selling Proposition (USP) of VRFB technology is precisely its ultra-long cycle life.
Independently validated data from operational VRFB plants across Japan, China, Germany, and
76. the USA consistently demonstrate cycle life in excess of 20,000 cycles at 100% depth of discharge, with negligible capacity degradation and no requirement for electrolyte replacement over the plant's entire operating life. This translates directly into a levellised cost of storage that is materially lower than Lithium-ion for grid-scale, long-duration applications.
The Scheme has rightly been designed to be technology-agnostic. However, by capping the Cycle Life axis at 12,00.0, the Performance Multiplier Matrix inadvertently ceases to reward performance beyond the range of conventional chemistries. A bidder offering 20,000 cycles receives the same recognition under the matrix as one offering 12,000 cycles - even though the former delivers nearly 67% more discharged energy over the plant's life per rupee of Subsidy paid.
Page 26 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
If India genuinely wishes to encourage indigenous manufacturing of alternative long-duration chemistries such as VRFB, the evaluation framework must reward the additional life delivered.
We therefore submit the following request: • Extension of the Cycle Life axis by adding two additional rows - ">=15,000 cycles" and ">=20,000 cycles" - to the Performance Multiplier Matrix. • A corresponding calibration of the multiplier factors so that the additional cycle life is Proportionately reflected in the effective per-kWh Subsidy payable.
• In the alternative, an explicit provision recognising cycle life in excess of 12,000 cycles for the purpose of the technical score under Clause 3.2 or the Performance Multiplier under Clause 3.3.3. ' Clarification/ Request:
We respectfully request the Ministry to extend the Cycle Life axis in the Performance Multiplier Matrix from 12,000 to 20,000 cycles, or introduce an equivalent recognition mechanism, so that the long-life advantage inherent to VRFB and similar chemistries directly translates into economic benefit under the Scheme.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 3.3.3):
77.
Please confirm whether the Financial Score (SF) is computed on the quoted Subsidy or on the effective (post-multiplier / post-cap) Subsidy.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: RFP Cl. 3.3.3; PA Schedule-G): a) Raw-material considerations: It is respectfully submitted for the Ministry's consideration
78. that inputs for lithium-based cells are at present largely met through imports, no domestic lithium being in commercial production as yet. Sodium-based cells, by contrast, draw upon raw materials for which an established domestic base is understood to exist, and offer the prospect of a supply chain sourced substantially within India. (b) Deployment conditions in India: The Programme is directed at Grid Scale Stationary Storage applications, which may be located at sites Page 27 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. experiencing a wide range of ambient conditions across the country. Sodium-based cells are understood to perform well across such conditions, with a reduced dependence on active thermal management, which may in turn lower system-level cost over the asset life.
Query: The ACC matrix at Schedule G (referenced via Clause 3.3.3 of the RFP) awards subsidy multipliers based on Energy Efficiency bands (≥75/80/85/90/95%) and cycle life. Sodium-ion cells presently demonstrate round-trip efficiency of approximately 90–93% against 95–97% for mature LFP chemistry. At an identical cycle life of 6,000, this places an LFP cell in the ≥95% band (multiplier A×1.2) while an equivalent sodium-ion cell falls in the ≥90% band (multiplier A) — a reduction of approximately 20% in effective subsidy arising solely from chemistry, and not from any difference in capacity commitment or Value Addition. We hereby request to consider, a technology-neutral adjustment to the Schedule G matrix — for instance, by recognising system-level round-trip efficiency (net of auxiliary thermal-management load) in place of, or in addition to, cell-level efficiency at a single ambient condition, or by separately calibrating the efficiency/cycle-life bands for sodium-ion chemistry — so that the Energy Efficiency banding does not operate as a de facto chemistry filter.
Document: RFP, PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: RFP Cl. 3.3.3; PA Cl. Schedule-G, Schedule-D):
Kindly confirm: (i) that the auxiliary power losses to be included under Schedule-D Cl. 1.2 are
79. only those of the test set-up at cell level, and do not extend to system-level (BESS) auxiliaries such as inverters, transformers or thermal management; and (ii) where a manufacturer requests testing at a C-rate higher than 0.5C under Schedule-D Cl. 1.3.2.1, whether the Energy Efficiency and Cycle Life so demonstrated are used for placement in the Schedule-G matrix on the same basis as a 0.5C test.
Document: RFP The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 3.4.2):
80.
Whether the 10 GWh is a single aggregate allocation under this RFP or an allocation available in each year; and whether shortlisted Bidders placed on the waiting list under this Clause may receive an allocation in a subsequent year.
Provisions of the bid documents shall
81. Document: RFP prevail.
Page 28 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Query (Clause: 3.4.2):
Increase the maximum cumulative allocation limit for a single Bidder from 4 GWh to 10 GWh.
Document: RFP, PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: RFP Cl. 6.2.4; PA Cl. definition of “Mother Unit”, “Milestone 2”, 6.2.8):
Kindly confirm whether 2 years or 5 years governs completion of the full Committed Capacity, and request for correct in Cl. 6.2.4 if 5 years is intended under this clause.
82. Worked example: for a 4 GWh Bid phased as 2 GWh by Year 2 (with the Investment and 25% Value Addition met) and the remaining 2 GWh by Year 5, kindly confirm that this is compliant and that Milestone 1 does not independently require capacity completion.
Kindly also confirm that the Investment base for Milestone 1 is the full Committed Capacity bid (INR 600 crore for a 4 GWh Bid), as the “Milestone 1” definition, Cl. 3.1(a) and Schedule-O indicate, and not merely the capacity achieved by Year 2.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: 6.2.5):
83.
Recommendation: - The investment limit for the Brownfield project should be reduced to 100 Cr/GW so as to do implementation faster and enable utilization of pre-built infrastructure taking the same on long term lease
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Appendix-I):
Existing Provision:
Procurement of Machinery from China / Land-Border Countries
84.
Bidder's Pre-Bid Query / Suggested Clarification:
Please clarify whether plant, machinery and manufacturing equipment required for establishing the ACC manufacturing facility may be procured from suppliers located in countries sharing a land border with India, including China, subject to compliance with the applicable registration requirements under the Government's procurement restrictions.
Page 29 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Appendix-I):
Existing Provision:
Technology Transfer from China
85.
Bidder's Pre-Bid Query / Suggested Clarification:
Where the bidder is an Indian company and proposes to enter into a Technology Transfer / Technology Collaboration Agreement with a company incorporated in a country sharing a land border with India, please clarify whether such arrangement is permissible for this RFP.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Appendix-V):
As per our understanding, the following documents are required for the Technical Bid evaluation:
86. 1. Appendix-V – Format for Technical Bid 2. Annex-I – Technical Bid table (Committed Value Addition and Committed Capacity) We would be grateful if you could kindly confirm whether any other documents are required specifically for technical evaluation, such as experience certificates, manufacturing credentials, project references, completion certificates, technology tie-up documents, or any other supporting documents.
Document: RFP Provisions of the bid documents shall prevail.
Query (Clause: Appendix-IX):
87.
It is requested to clarify the list of products or categories of goods that would be regarded as "finished goods" for the purposes of Clause 14(i)
Document: RFP Query not pertaining to the bid documents.
Query (Clause: Not specified):
88. It is requested that the Government clarify whether a standalone cell-component manufacturer is the focus of this PLI scheme, or whether cell/battery components (i.e., anode/cathode active- material) manufacturing for ACC also forms an integral part of the current scheme. It is respectfully submitted that this clarification is material, since in the absence of a component- Page 30 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. materials focus, domestic cell manufacture may continue to depend on imported active materials, which is understood to have limited the extent of localisation achieved under the earlier rounds of the Programme.
Document: RFP Please refer to "Request for Proposal for Selection of Manufacturers for Setting Up 10 Query (Clause: Not specified):
GWh Manufacturing Capacities for
There are three published documents governing this tender: (a) the Ministry of Heavy Industries Advanced Chemistry Cell (ACC) for Grid
Notification dated 09.06.2021 [S.O. 2208(E)] titled "Production Linked Incentive (PLI) Scheme Scale Stationary Storage Applications under – National Programme on Advanced Chemistry Cell (ACC) Battery Storage", (b) the Programme the Production Linked Incentive (PLI) Agreement published on the Central Public Procurement (CPP) Portal, and (c) the Request for Scheme" dated 15 July 2026 with Tender ID:
89. Proposal (RFP) (Tender ID 2026_DFIN_910329_1) published on the CPP Portal. The 2026_DFIN_910329_1 on the CPP Portal. requirements relating to mandatory investment and domestic value addition are not consistent across these documents. The PLI Scheme provides that the Beneficiary Firm shall achieve minimum mandatory investment of ₹225 crore per GWh within 2 years, minimum 25% domestic value addition within 2 years, and 60% domestic value addition within 5 years. However, the RFP/Programme Agreement prescribes minimum investment of ₹150 crore per GWh within 2 years, 25% value addition within 2 years, and 40% value addition within 5 years. Kindly clarify which document shall prevail for the purpose of this tender and Programme Agreement.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Recital D):
As per this clause, bidder have to achieve at least 25% Value Addition within 2 years and 1 GWh
90. capacity with at least 40% value addition within 5 years. Pl confirm and clarify that in Milestone 1 – at least 25% Value addition and in Milestone 2 - minimum 1 GWh capacity and 40% Value addition. Clarity in this context is required as in complete RFP including Programme Agreement, there are different versions of Capacity Milestones. Request you to kindly provide your clarity on Capacity requirement in both Milestones respectively
Document: PA Provisions of the bid documents shall
91. prevail.
Query (Clause: definition, Schedule-E):
Page 31 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Kindly confirm the precise basis of “sale value” for the Value Addition computation (i.e. ex- factory value net of indirect taxes) and that Value Addition is assessed on ACCs manufactured and sold during the quarter.
Document: PA Query (Clause: definition): Provisions of the bid documents shall prevail.
PA definition of Investment; Brownfield Project / Dedicated Facility Please clarify whether plant
92. and machinery purchased or transferred from an existing company - whether a group company or unrelated party, and whether new or previously used - qualifies as Investment when installed and used in the Mother Unit / Dedicated Facility. If eligible, specify the recognised value, cut-off date, evidence and restrictions where the asset was previously used, counted under this Programme or supported under another incentive scheme.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: definition):
PA definition of Investment; investment certification
1. Whether SPV is required to be incorporated in all cases;
2. Expenditure incurred on Plant and Machinery, Equipment’s and Associated Utilities would
93. include only the expenditure capitalized to Plant and Machinery or even the expenditure under the Capital Work-in-Progress.
3. Whether the CWIP undertaken in one entity transfer to SPV could be considered as eligible investment as same has not been Capitalized or transfer to Fixed Assets
4. Do finance lease, operating lease, hire-purchase, vendor-financing or sale-and-leaseback assets qualify? If yes, specify recognised value and evidence.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: definition of "Contract Year", 10.2, 10.3, 11.5):
94.
The phasing of the base Subsidy under Clause 11.5 operates by reference to each Contract Year, which is defined as a period of twelve months commencing from the Appointed Date, whereas under Clause 10.2 disbursement of Subsidy commences only upon achievement of Milestone 1 Page 32 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. and issuance of the Milestone 1 Completion Certificate, which may occur up to two years from the Appointed Date. On this reading, Contract Years 1 and 2 would be construction and commissioning years during which no Subsidy is disbursed, with the consequence that the un- phased (100%) rate would in practice be available only during Contract Years 3 and 4. Kindly confirm this understanding. It is further requested that the phasing under Clause 11.5 may be aligned to commence from the date of issuance of the Milestone 1 Completion Certificate, consistent with the disbursement period contemplated under Clause 10.3, so that the intended benefit of the phasing schedule is available over the full disbursement window.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: definitions of “Contract Year”, “Execution Date”, “Milestone 1”, “Milestone 2”,
4.6, 4.9, 6.2.7, 6.2.8):
95.
Kindly clarify whether the one-year period under Clause 4.9 for achieving the Appointed Date will be extended where the delay is attributable to the Government or the concerned State Government, including delay in execution of the Tripartite Agreement, and whether such extension will prevent automatic termination under Clause 4.9.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: definition of “Energy Efficiency”, Schedule-D, Schedule-E, Schedule-G):
(a) The definition of “integrated advanced batteries (Single Units)” for the purposes of Schedule G, and where the boundary lies between a qualifying integrated advanced battery and a battery pack, module, rack or containerised energy storage system which does not qualify. (b)
96.
Confirmation that the article in respect of which Subsidy is payable is the Advanced Chemistry Cell, or a qualifying integrated advanced battery, and not a battery energy storage system into which such cells are subsequently assembled. (c) Whether a Beneficiary Firm may elect to have Energy Efficiency and cycle life certified at cell level; and, where certification is undertaken at integrated unit level, whether the auxiliary consumption of battery management and thermal management subsystems is to be included in the measurement of Energy Efficiency.
Document: PA The relevant provisions of the bid documents
97. are self-explanatory.
Query (Clause: definition of " Force Majeure ", Article 14):
Page 33 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Document Text: Article 1, Force Majeure definition, Page 33 “any political or economic upheaval, disturbance, movement, struggle or similar occurrence which could not have been anticipated or foreseen by a prudent person and which causes the construction or operation of the Project to be financially unviable or otherwise not feasible”
Query:
It is understood that although not explicitly mentioned, the Force Majeure definition extends to delays or non-availability of critical manufacturing equipment or specified inputs arising from geopolitical events — including imposition of export controls, sanctions, trade restrictions, retaliatory tariffs or diplomatic actions by exporting jurisdictions — that could not have been reasonably anticipated at the time of bidding and which materially delay construction or commissioning of the Project. Kindly Confirm
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: definition of "Grid-Scale Stationary Storage applications", Article 10, Schedule- H):
Document Text: Article 13.3(c), Page 32 “A certificate from the statutory auditor certifying the sale of Advanced Chemistry Cells manufactured at the Project by the Beneficiary Firm have been used for Grid Scale Stationary Storage applications;” Schedule-E, Clause 3(i)(vii), Page 65 “Self-certification by the authorised signatory of the Beneficiary Firm and statutory auditor certificate, confirming the end-use of the ACCs manufactured at the Project and sold under the Programme as Grid Scale Stationary Storage.” Schedule-H, Page 70–71 “Certificate from the
98. statutory auditor certifying the sale of Advanced Chemistry Cells manufactured by the beneficiary firm are being used for Grid Scale Stationary Storage applications”
Query:
Please clarify whether the "sold" limb of the subsidy-eligibility definition is limited to sales invoiced to buyers located in India, or extends also to export sales of ACCs — where the ACCs are manufactured in India by the Beneficiary Firm, the Value Addition is achieved in India per Schedule-E, and the end-use is Grid-Scale Stationary Storage (certifiable by the statutory auditor). Given that the Programme's stated intent is to accelerate domestic ACC manufacturing and Value Addition — both of which are achieved regardless of the destination market of the sale — we would like to understand whether export sales into Grid-Scale Stationary Storage Page 34 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. applications abroad qualify for subsidy, and if so, what documentary evidence is expected to certify the end-use.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: definition of “Grid Scale Stationary Storage”, 9.2, 11.1.1, 13.3):
Whether behind-the-meter commercial and industrial storage, data centre storage, and storage co- located with captive renewable generation qualify where the installation is grid-interactive; and
99. the form and extent of end-use evidence that will be accepted for the purposes of Clause 13.3(c) and the Independent Engineer's review under Clause 9.2(c). how cells applied in our own systems are accounted for. The subsidy formula is applied to cells "sold". Schedule E 3(h) provides a fallback for a beneficiary that also makes packs, but it assumes the pack carries full value addition and would materially understate our cell-level figure. The answer affects the structure we adopt before bidding, so it should not wait.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: definition of “Investment”):
100.
Please confirm whether capital expenditure on a captive renewable-energy installation at the Mother Unit qualifies as “associated utilities” Investment and indicate the treatment of an off-site captive renewable-energy plant.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: definition of “Investment”, 3.1):
101.
Whether expenditure on buildings, factory structures and civil works forms part of Investment for the purpose of the requirement of INR 150,00,00,000 per GWh.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: definition of “Investment”):
Document Text: "'Investment' shall mean expenditure incurred on Plant, Machinery, Equipment
102. and Associated Utilities."
Query:
Please clarify whether the Investment definition under Clause 1.1 includes expenditure on Page 35 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. "Building" — specifically civil infrastructure such as PEB (Pre-Engineered Building) structures, RCC columns, landscaping, architect fees for design, and related permanent civil works of the Mother Unit — for the purpose of quantifying the ₹150 crore per GWh Investment threshold.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: definition of “Investment”, Schedule-E):
Document Text: “Expenditure related to Transfer of Technology (ToT) Agreements: This shall include cost of technology and initial technology purchase related to goods required for the Advanced Chemistry Cell manufacturing. All non-creditable taxes and duties would be included in such expenditure “
103.
Query:
Please confirm that milestone-linked or staggered technology payments made to a foreign Technology Partner under a Transfer of Technology arrangement — whether structured as lump- sum, tranche-based, or milestone-linked capitalised payments — qualify as eligible Investment under Clause 1.1, provided the payments are made by the beneficiary Firm on or after the Appointed Date (in the case of an SPV) or the date of issuance of the LOA (in the case of the Selected Bidder itself as Beneficiary Firm) until the achievement of Milestone-1 certificate.
Kindly Confirm.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: definition of “Investment”):
Document Text: "'Investment' shall mean expenditure incurred on Plant, Machinery, Equipment and Associated Utilities, including" Query:
104. Pl ease confirm that costs incurred for technical support during Site Acceptance Testing (SAT), installation, commissioning and initial ramp-up of the manufacturing line — whether rendered by the OEM, the technology partner, or third-party integrators — qualify as eligible Investment under the "erection and commissioning" limb of Clause 1.1. Such technical support is integral to bringing the plant to commercial production readiness and cannot be separated from the machinery cost in commercial contracts.
Document: PA The relevant provisions of the bid documents
105. are self-explanatory.
Query (Clause: definition of “Investment”):
Page 36 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Document Text: "'Investment' shall mean expenditure incurred on Plant, Machinery, Equipment and Associated Utilities."
Query:
Since a majority of the plant and machinery for ACC manufacturing is imported, we understand that the exchange rate basis for quantifying the ₹150 crore per GWh Investment threshold is the rate as recorded for the capitalisation of the asset in the Beneficiary Firm's books per Ind AS 16 (i.e., the date the asset becomes ready for its intended use). Consistent with Ind AS 21, the capitalisation-date rate is the generally accepted accounting basis for PPE and provides the auditable reference for statutory auditor certification of the Investment threshold. Kindly confirm.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: definition of “Investment”):
Document Text: "'Investment' shall mean expenditure incurred on Plant, Machinery, Equipment and Associated Utilities."
106.
Query:
Please confirm that borrowing cost capitalised on qualifying assets during the construction period — in accordance with Ind AS 23 (Borrowing Costs) — forms part of the eligible Investment under Clause 1.1. Capitalised borrowing cost is embedded in the book value of the asset per generally accepted accounting principles and is auditable through the same statutory auditor certification as other capex.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: definition of "Investment", 1.1, 3.1):
The Programme Agreement defines "Investment" as expenditure incurred from the date of incorporation of the SPV, or, where the Selected Bidder itself is the Beneficiary Firm, from the
107. date of issuance of the LOA. Given that procurement of imported cell-manufacturing equipment typically requires placement of purchase orders and payment of advances well in advance of delivery on account of long international lead times, it is requested that the Government clarify whether advance payments made and purchase orders issued prior to issuance of the LOA, but for equipment forming part of the Committed Capacity and delivered/capitalised after the Page 37 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Appointed Date, may be counted towards the INR 150 crore/GWh Investment threshold (excluding land cost) under Milestone 1.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: definition of “Investment”, Schedule-E):
Existing Provision: “Investment” (for Milestone 1) capitalises one-time Transfer-of-Technology/licence cost.
Separately, Schedule E deducts “expenses incurred in foreign currency for royalty or technical know-how” while computing Value Addition %, which directly multiplies quarterly Subsidy.
Bidder's Pre-Bid Query / Suggested Clarification:
108. Th e Programme Agreement recognises expenditure towards Transfer of Technology (ToT) Agreements, including the cost of technology and initial technology purchase, as eligible Investment for Milestone 1. Schedule E separately provides for deduction of expenditure incurred in foreign currency towards royalty for technical know-how while determining Value Addition.
Kindly clarify that a one-time, capitalised ToT/initial technology purchase cost already recognised as Investment for Milestone 1 will not be treated again as a recurring royalty/technical know-how expense for Value Addition computation, thereby avoiding duplication/double counting of the same expenditure.
Please also clarify the treatment where the ToT agreement comprises both an initial technology fee and recurring royalty payments.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: definition of “Investment”):
Investment date
Suggestion: The definition to be edited from “In case of a Brownfield Project, only Investment
109. made towards the Dedicated Facility shall be counted towards achievement of the Milestones.” to “In case of a Brownfield Project, only Investment made towards the Dedicated Facility shall be counted towards achievement of the Milestones, and expenditure incurred before the issuance of LOA towards the Dedicated facility shall be counted towards achievement of the Milestones”
Rationale:
Page 38 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. a) China had put export restrictions (Oct 2025) on critical equipment required for battery cell manufacturing – because of which we had to fast-track equipment ordering to secure supply of equipment. Moreover, such geo-political situations persist, requiring us to proactively secure equipment supply rather than waiting for Appointed date or LoA date.
b) To achieve better cost economics and reduce the cost gap to manufacturers from China, it requires setting up integrated larger capacity plants where multiples lines and higher capacity
(GWh) is installed within the same building and utilities and other common infrastructure is also planned separately. Hence, it is not economically favorable to stagger the investments as per PLI timelines
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: definition of “Milestone 1”):
Considering the complexity of establishing ACC manufacturing facilities and localisation of the
110. associated supply chain, it is requested that a provision be introduced to allow a one-time extension of up to 12 months beyond the existing timeline of 24 months, for achieving the Milestone 1 requirements relating to investment and 25% value addition, thereby permitting compliance within 36 months from the Appointed Date.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: definition of “Milestone 1”, 6.2.7):
111.
For a new facility, the period from groundbreaking to a stabilised cell line is generally understood to be in the range of about 3 years. A two-year window may therefore be difficult to meet for reasons of engineering sequence alone, and not for want of intent or funding.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: definition of "Milestone 1", Article 10):
Document Text: "'Milestone 1' shall mean the achievement by the Beneficiary Firm of: (a)
112.
Investment of INR 150,00,00,000 (Rupees one hundred and fifty crore) per GWh (excluding the cost of land) for the Committed Capacity at the end of 2 (two) years from the Appointed Date; and (b) 25% (twenty-five per cent) Value Addition of the Advanced Chemistry Cell, within 2
(two) years from the Appointed Date" Page 39 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Query:
The clause specifies "at the end of" and "within" 2 years from the Appointed Date, which we understand prescribes the outer limit by which Milestone 1 must be achieved and does not preclude earlier achievement. Where the Beneficiary Firm demonstrably meets both conditions — the ₹150 cr/GWh Investment and the 25% Value Addition — before the end of the second year (for example, at the end of Year 2 Quarter 1), the Beneficiary Firm shall be entitled to apply for the Milestone 1 Completion Certificate at that earlier date, and the Independent Engineer shall certify the same accordingly, enabling subsidy disbursement to commence from the date of such earlier certificate. This reading rewards Beneficiary Firms that accelerate facility set-up ahead of the mandated timeline and directly supports the Programme's stated intent of expediting domestic ACC manufacturing. Kindly confirm.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: definition of "Milestone 1",6.2.4, Schedule-D, Schedule-N, Schedule-O):
Document Text: "Milestone 1’ shall mean the achievement by the Beneficiary Firm of: (a) Investment of INR 150,00,00,000 (Rupees one hundred and fifty crore) per GWh (excluding the cost of land) for the Committed Capacity at the end of 2 (two) years from the Appointed Date;
and (b) 25% (twenty-five per cent) Value Addition of the Advanced Chemistry Cell, within 2
113.
(two) years from the Appointed Date.”
Query:
Milestone 1 is evaluated on (i) Committed Capacity installed and (ii) 25% Value Addition achieved by the end of Year 2 from the Appointed Date, both certified through the Milestone 1 Completion Certificate under Schedule-O. Schedule-D testing runs as a parallel process, has no bearing on the issuance of the Milestone 1 Completion Certificate, and determines only the applicable subsidy multiplier at the time of disbursement per Schedule-N. Kindly confirm.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: definition of "Milestone 2", Schedule-O):
Provisions of the bid documents shall
114. Do cument Text: Article 1, Page 9: "'Milestone 2' shall mean the completion of 40% (forty per prevail. cent) Value Addition, within 5 (five) years from the Appointed Date.” Schedule-O, Page 83 (Subject of Milestone 2 Completion Certificate): "Issuance of Milestone 2 Completion Certificate for the achievement of overall Value Addition within five years from the Appointed Date." Page 40 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Query:
There is an internal inconsistency between (i) the definition of Milestone 2 in Article 1, which prescribes a threshold of 40% Value Addition to be achieved within 5 years from the Appointed Date, and (ii) the reference to "overall Value Addition" in the Milestone 2 Completion Certificate at Schedule-O. As a matter of contractual construction, the substantive definition in Article 1 governs, and the Certificate format under Schedule-O — being procedural — cannot override or extend it. Accordingly, we understand that the Milestone 2 Completion Certificate shall be issued upon the Beneficiary Firm achieving a Value Addition of 40% or higher within 5 years from the Appointed Date, irrespective of the higher Value Addition, if any, specified in the Technical Bid.
Under-achievement of the committed VA path is separately and adequately addressed by the shortfall damages point under Article 8.3, and does not warrant a further consequence at the Milestone 2 certification stage. Kindly confirm this reading, and amend the Schedule-O reference to "overall Value Addition" to read as "Value Addition of 40% or higher" so that the Certificate format aligns with the substantive definition.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: definition of “Mother Unit”):
115.
May the Mother Unit be a multi-location facility, or must it necessarily be a single physical location / single-roof establishment?
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Article 1):
116.
Please clarify the investment requirement (under Milestone 1 & Mother unit). Whether the requirement is to place PO after the LOA issuance date or can be considered upon Goods/Equipment receipt at site.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 1.1):
117. W e understand that the Bid Security amount is to be submitted is as per the committed Capacity quoted against the RFP and hence we request you to kindly clearly mention that the Bid Security amount to be submitted against the committed GWh capacity would be proportion to the overall BG amount of Rs. 10 crores. Kindly clarify that per GWh BG amount is Rs. 1 crore and the Page 41 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. bidder bidding for the capacity has to proportionately submit the BG amount against the RFP
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 1.1):
Provisions of the bid documents shall Under the heading Milestones definition, Value Addition targets are mentioned in respective prevail.
Milestone 1 and Milestone 2 but how much capacity in each Milestones is not mentioned. Kindly
118. specify as how much minimum Capacity targets are to be achieved under each Milestones 1 & 2 respectively. Secondly, the Investment criteria defined in the Programme Agreement is considered from date of LOA. Keeping in view of the urgency of the National Project, we sincerely request that the Investment as defined in PA should be allowed from the date of submission of bids so that the activities can be initiated in Parallel
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 2.1, 4.3):
119.
The milestone clock thus begins very close to the signing. of the agreement. For a new unit, much of the first year is ordinarily taken up by land development, statutory clearances and long-lead equipment ordering, before any measurable Value Addition can arise.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 2.2.4):
Existing Provision:
Bidders who have participated in the tenders dated (i) 22 October 2021 bearing reference no.
01(05)/2019-AEI (19587); ..............................., where the Selected Bidder proposes to utilize a
120.
Brownfield Project, such Selected Bidder shall ensure that appropriate ring-fencing mechanism is put in place, including (i) clear physical separation between the existing Brownfield Project and the Dedicated Facility; and (ii) maintaining separate books of account and records for the Dedicated Facility to ensure clear identification of Investments made under the Programme Agreement.
Bidder's Pre-Bid Query / Suggested Clarification:
Page 42 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Considering that Greenfield bidders are required to establish the manufacturing ecosystem from the ground up, whereas existing ACC manufacturers may leverage their existing facilities, infrastructure, technology, manpower and operational capabilities, kindly clarify what measures have been incorporated in the evaluation methodology to ensure a level playing field between Greenfield and Brownfield bidders. In particular, please confirm that only the incremental capacity, investment and Value Addition created specifically under this RFP will be considered for evaluation and milestone compliance for Brownfield projects.
Where a Brownfield bidder uses existing land, buildings, utilities, laboratories, warehouses, common infrastructure or other facilities for the Dedicated Facility, kindly clarify that the benefit/value of such existing assets shall not be counted towards the Investment or other qualification/technical evaluation parameters except to the extent of eligible incremental investment made specifically for the Dedicated Facility.
Document: PA Query not pertaining to the bid documents.
Query (Clause: Article 3):
Kindly clarify whether the primary objective of the Programme is (a) development of domestic raw materials (cathode/anode active materials), (b) ACC (cell) manufacturing, or (c) both in combination. In this connection, it is submitted for the Government's consideration that the
121.
Previous Tenders referred to in Clause 2.2.4 of the RFP were directed at ACC manufacturing capacity without a distinct indigenisation requirement for upstream active materials, and that in the absence of such a requirement in the present round, the outcome of this Programme may substantially replicate that of the Previous Tenders, with domestic capacity dependent on imported active materials. The Government's clarification on this point would assist Bidders in aligning their Value Addition and localisation strategy with the Programme's intended focus.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Article 4):
122. Ca n the Condition Precedent under Article 4 of the draft Programme Agreement be relaxed to permit Bidders to set up their dedicated production line on rented/leased premises, or under an O&M arrangement with existing domestic manufacturers, in lieu of establishing an entirely new facility? Page 43 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Article 4):
Article 4 Please confirm the complete Conditions Precedent and documentary evidence required
123. for the Appointed Date. Where the Beneficiary Firm has fulfilled all conditions within its control but the Appointed Date is delayed due to Government approval, Tripartite Agreement, State support, land approval or another matter not attributable to it, will milestones and capacity-linked obligations be correspondingly extended without damages or adverse consequences?
Document: PA, TA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: PA Cl. 4.2, 4.5, 4.6; TA Cl. definition of “Effective Date”, 7.1.1, 7.5.5):
Kindly confirm that the land hand-over period under TA Clause 7.1.1 is capped at 120 days under
124.
TA Clause 7.5.5. Further, where land allocation or hand-over by the State Government is delayed beyond this period, kindly confirm that the Appointed Date and all Milestone dates will be extended on a day-for-day basis, without LD or any other adverse consequence to the Beneficiary Firm.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 4.2, 4.5, 4.6, 4.7, 4.8, 4.9):
Kindly confirm that any delay in execution of the Tripartite Agreement attributable to the
125.
Government or the concerned State Government shall result in a corresponding extension of the Appointed Date and all Project milestones, without LD, Performance Security encashment or any other adverse consequence to the Beneficiary Firm.
Document: PA Provisions of the bid documents shall prevail.
126. Q uery (Clause: 4.5, 6.2.7, 6.2.8):
Existing Provision:
Page 44 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
A flat 60-day extension applies to delay in Conditions Precedent (Cl. 4.5); no corresponding automatic extension is provided for delay in achieving Milestone 1/2 caused by State Government/Government Instrumentality action or inaction (e.g. infrastructure connectivity, environmental or land approvals).
Bidder's Pre-Bid Query / Suggested Clarification:
Reference: Clauses 4.5, 6.2.8 and Milestone 1 / Milestone 2 provisions of the Programme Agreement In case achievement of Milestone 1 and/or Milestone 2 is delayed due to any act, omission, delay or failure on the part of the Government, State Government or any Government Instrumentality, including delays in provision of land, infrastructure, utility connectivity, statutory approvals, environmental clearances or other Government-related obligations, the Beneficiary Firm should not be held responsible for such delay or be subject to damages, forfeiture or other adverse consequences.
We request MHI to clarify and provide that the timeline for achievement of the affected Milestone(s) shall be extended on a day-for-day basis, corresponding to the period of delay attributable to the Government/State Government/Government Instrumentality, including any reasonable consequential period required to complete the affected activity.
Further, such extension should be available without prejudice to the Beneficiary Firm’s eligibility for Subsidy and without invocation of Performance Security or levy of damages, provided the Beneficiary Firm has duly demonstrated that the delay is attributable to the Government/State Government/Government Instrumentality and that the Beneficiary Firm has exercised reasonable efforts to mitigate the impact of such delay.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 4.5, 4.8):
127. Re quest that a “Change in Law” event also be added as a ground (along with Force Majeure and default of the other Party) for extension of time / exclusion from liquidated damages under Clauses 4.5 and 4.8, as a Change in Law event may equally impact a Party’s ability to fulfil the Conditions Precedent.
Page 45 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 6.2.4):
As per this clause, the Beneficiary has to achieve the complete Committed capacity as quoted in
128. Te chnical Bid, in the 1st Milestone itself alongwith value addition of minimum 25% and subsequently in Milestone 2 to achieve minimum 40% value addition. Please confirm and clarify as there is no clarity regarding completion of Committed capacity anywhere in complete RFP document and Programme Agreement and infact there are different versions and wordings w.r.t.
Milestone achievements in different clauses of RFP and Programme Agreement
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 6.2.5):
129.
Clarification of Brownfield project definition. It includes under construction manufacturing facility or it means extension of running facility and has ongoing operations.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 6.2.6., 6.2.7, 8.2, 8.3, 11.9.3):
Document Text: Clause 6.2.6 / 6.2.7 : Government can stop subsidy and/or take action against the Performance Security in certain circumstances. Clause 8.2 : Shortfall in Committed Capacity can lead to a deduction from subsidy, including a deduction equal to twice the subsidy attributable to the shortfall capacity. Clause 8.3 : Shortfall in Value Addition can lead to deduction from subsidy. Clause 11.9.3: Provides a specific penalty calculation linked to the subsidy already paid.
130.
Query:
Please clarify whether the aggregate liability of the Beneficiary Firm arising from all penalty, damages and forfeiture clauses (including but not limited to Clauses 6.2.6, 6.2.7, 8.2, 8.3 and
11.9.3) is subject to an overall ceiling — for instance, capped at the amount of the Performance Security, or at the aggregate Subsidy attributable to the Committed Capacity. In the absence of such a ceiling, we request the Ministry to introduce a cumulative cap on the Beneficiary Firm's liability under the Programme Agreement, given that the ACC manufacturing ecosystem in India is at an early stage and Beneficiary Firm performance depends on uncontrollable factors including Page 46 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. domestic raw material availability, downstream demand evolution and geopolitical supply disruptions.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 6.2.6., 6.2.7, 8.2, Article 16):
Document Text: “Unless the Parties have mutually agreed otherwise, or the Beneficiary Firm Event of Default has been remedied within a period of 30 (thirty) days, the Government may terminate this Agreement by serving a 7 (seven) days’ notice (“Beneficiary Firm Termination Notice”) to such effect to the Beneficiary Firm. It is clarified that such Beneficiary Firm Event of Default shall also entitle the Government to appropriate and encash the Performance Security and the Beneficiary Firm shall not be entitled to receive any Subsidy from the Government in such case.”
131. Qu ery:
Please clarify the treatment of allotted capacity in the event that a Beneficiary Firm defaults on its obligations under the Programme Agreement — whether by failure to meet Milestone 1, failure to achieve Committed Capacity, sustained Value Addition shortfall, or termination on any other Event of Default. Specifically: (i) whether the allotted capacity forfeited by the defaulting Beneficiary Firm is reallocated to the next-ranked Bidder from the same Tranche, or is retained by the Government for a separate future Tranche; and (ii) whether the Government would consider introducing a runner-up allocation provision — such that where the Beneficiary Firm's delay against the Milestone-1 timeline (or Committed Capacity commissioning schedule) exceeds a prescribed threshold, the corresponding shortfall capacity may be offered to the next- ranked qualifying Bidder from the same Tranche.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 6.2.7):
132.
Please clarify as under Milestone 1, what Capacity is to be achieved out of the total committed capacity quoted in the Technical Bid by the bidder
Document: PA Provisions of the bid documents shall
133. prevail.
Query (Clause: 6.2.7):
Page 47 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
6.2.7 The Beneficiary Firm shall ensure that it has achieved not less than 25% (twenty-five per cent) Value Addition of the Advanced Chemistry Cell and a minimum of INR 225,00,00,000 (Rupees Three hundred Crore) per GWh of Investment at the Mother Unit, within 2 (two) years from the Appointed Date. In the event that the Beneficiary Firm does not achieve the Value Addition and / or minimum Investment or Milestone 1 Completion Certificate within the stipulated period, and the delay has not occurred as a result of breach of this Agreement by the Government or due to Force Majeure, the Beneficiary Firm shall pay to the Government, liquidated damages in an amount calculated at the rate of 0.1% (zero point one per cent) of the performance security for each day’s delay until the achievement of the above obligations.
Rationale: The capital cost of putting up a cell factory ranges from INR 600 800 crores per GWh.
The minimum investment of INR 150 crores per GWh will put greenfield bidders in a disadvantageous position. Propose to keep the minimum investment as INR 225 crores per GWh in line with the 2021 ACC PLI.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 6.2.7, 6.2.8):
134.
(a) Request that a “Change in Law” event be added as an exclusion (along with Force Majeure) for levy of liquidated damages for delay in achieving milestones under Clauses 6.2.7 and 6.2.8.
(b) Request that a cap be provided on the liquidated damages leviable under these clauses.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 6.2.7):
Reduce the liquidated damages from 0.1% per day to 0.025% per day of the Performance Security
135. wh ile retaining the overall cap. Recommendation: - Provide a well-defined cure period to enable the Beneficiary Firm to rectify delays. Further, delays arising due to reasons beyond the control of the Beneficiary Firm, such as statutory approvals, utility connections, supply chain disruptions, import restrictions, or other force majeure events, visa disruptions should be considered on a case-by-case basis while determining the applicability of penalties
Document: PA Provisions of the bid documents shall
136. prevail.
Query (Clause: 6.2.7):
Page 48 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Milestone 1 requires 25% Value Addition and minimum Investment of INR 150 crore/GWh to be achieved by the end of the second year from the Appointed Date. Where, for illustration, a 1 GWh Committed Capacity results in only 250 MWh of confirmed offtake by the end of the second
year: (a) Kindly clarify whether the Beneficiary Firm may seek any enhancement or reallocation of Subsidy entitlement if the remaining 750 MWh of capacity is not sold within the Milestone 1 period. (b) Kindly clarify whether any mechanism exists, or is proposed, for assured part- procurement of the balance capacity through government or government-linked Grid Scale Stationary Storage projects. (c) In the absence of such assured procurement, kindly clarify whether relief from liquidated damages under Clause 6.2.7 (accruing at 0.1% of Performance Security per day of delay) may be lowered/waived where the shortfall is directly attributable to the absence of confirmed offtake, rather than any default by the Beneficiary Firm.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 6.2.7, 6.2.8, 16.1.1(d), 16.1.1(e), 16.2.1, 16.2.2):
137. Ki ndly confirm that the 18-month period under Clause 6.2.8 is the applicable cure period for failure to achieve the Committed Capacity or overall Value Addition at the 5-year milestone and cannot be short-circuited through Clause 16.1.1(e). Kindly also clarify what grace/cure period, if any, applies to a Milestone 1 shortfall under Clause 6.2.7.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 6.2.7, 6.2.8, 6.2.9, 6.2.10, 8.2, 8.3, 8.4, Schedule-B):
138.
Please give worked examples for delayed Milestone 1, quarterly capacity shortfall, Value Addition shortfall and simultaneous shortfalls. Clarify whether deductions aggregate and whether later over-achievement can cure and reverse or adjust earlier deductions.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 6.2.7, Schedule-E, Schedule-O):
139. (a ) Whether Value Addition at Milestone 1 is assessed on a single completed quarter of sales, on cumulative sales to the date of assessment, or on some other basis. (b) Whether it is assessed at Mother Unit level or, where a Dedicated Facility is established, at the level of that facility. As Value Addition is a ratio computed on sale value, it cannot be established in the absence of sales;
Page 49 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. the minimum volume of certified sales required at Milestone 1 is therefore material to project planning.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 6.2.8, 13.3, Schedule-E):
Document Text: Clause 13.3(a), Page 33 “Certified statements by its statutory auditor evidencing receipt of quantum and value of raw material, inputs, semi-finished goods, capital goods, and finished goods, along with the respective Tax credit, if applicable;” Schedule-E — Clause 3(c), Page 65 “Value Addition in respect of the Advanced Chemistry Cell may be denominated as the ratio of 'actual value added' to the sale value (net of returns, price adjustments, discounts, etc.) of the said goods (ACCs), excluding indirect Taxes, if any paid on the goods. It may be expressed as the percentage of manufacturing activity being undertaken in India, either on its own or indigenous manufacturers. The 'actual value added' may be calculated on the basis of financial records (including turnover reported in GST returns) as per the following formulae:” “Less: Cost of raw materials and/or packing materials consumed in the said goods (i.e. in the final
140. sale price of the goods sold) to be calculated in terms of generally accepted costing principles” “
Less: Cost of material whose source of origin cannot be ascertained (beyond prescribed threshold)”
Query:
For establishing domestic versus imported content in raw materials, components and sub- assemblies, please confirm the acceptable documentary evidence — specifically (i) whether Bill of Entry (BOE) value is the standard evidence for imported inputs (as it captures landed cost including duties), or whether Purchase Order value is acceptable, and (ii) the treatment of taxes in the VA computation — indirect taxes (GST) are excluded from sale value under Schedule-E, but the treatment of customs duty and other levies on imports (capitalised into raw material cost) should be confirmed as forming part of the "cost of imported raw materials consumed" and thus foreign content.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 6.2.9, 10.2):
141.
A later Milestone 1 for a new unit would mean a correspondingly later start of Subsidy, even where the eventual capacity and Value Addition are the same.
Page 50 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 6.2.9, 10.2, 10.3, 11.1.2):
If the Beneficiary Firm commissions the plant early achieves the 25% Value Addition before completion of two years (e.g., in 18 months), will the Milestone 1 Completion Certificate be
142. iss ued immediately and will PLI disbursement commence from that date, or only after completion of two years? Recommendation: - a)Permit issuance of Milestone 1 Completion Certificate and commencement of PLI immediately upon early achievement of the prescribed Investment and Value Addition, without waiting for expiry of the two-year period. b) Specify that the Independent Engineer shall issue the Milestone Completion Certificate within 30 days of submission of complete documents.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 7.1.1):
143. Ki ndly request to accept Insurance Security Bonds (ISB) also for Performance Security after winning the tender. ISB are recognized instruments of security by Min of Finance and are widely accepted for various Govt tenders. Hence kindly request to accept ISB as mode of security and also share format for the same.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 7.1.2):
144. Pl ease clarify whether the Performance Security for a Committed Capacity between 1 GWh and 4 GWh is calculated on a pro-rata basis (i.e., at the rate of INR 10 Crore per GWh), or if a flat slab applies where any capacity exceeding 1GWh automatically requires the full security of INR 40 Crore.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 7.2.1):
145.
Request that a cure period of 60 days be provided to the Beneficiary Firm before encashment or appropriation of the Performance Security under this clause.
Page 51 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 8.2):
Shortfall in Committed Capacity attracts a 2x deduction of Subsidy corresponding to the shortfall, with no tolerance band.
146.
Kindly consider revisiting and reducing the proposed 2x Subsidy deduction, as the penalty appears disproportionately high relative to the capacity shortfall.
Further, please clarify that no such deduction shall apply where the shortfall is attributable to Government/State Government delays, Force Majeure or events beyond the reasonable control of the Beneficiary Firm, with corresponding extension of the implementation timeline.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 8.2):
Please clarify the exact baseline from which the 2x shortfall penalty is deducted. Assuming the developer commitment was 4 GWh and commissioned only 3 GWh:
147. - The penalty is deducted directly from the Committed Capacity (4 GWh): 4 GWh (Committed) - 2 GWh (Penalty) = 2 GWh final payout. - The subsidy is first limited to the actually commissioned capacity (3 GWh), and the penalty is
then deducted from this earned amount: 3 GWh(Commissioned) - 2 GWh (Penalty) = 1 GWh final payout.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 8.2, 8.4, 8.5, Schedule-B, Schedule-M):
148. Ki ndly confirm that, consistent with the Cl. 8.2 illustration and Cl. 9.2(a), the shortfall is assessed against commissioned manufacturing capacity and not against actual annual production, and kindly clarify how partial commissioning and ramp-up are to be treated and at what frequency the test is applied.
Document: PA Provisions of the bid documents shall
149. prevail.
Query (Clause: 8.2.2):
Page 52 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Reconsider the provision of deducting 2× the subsidy corresponding to the capacity shortfall and instead restrict the deduction to the subsidy applicable to the actual shortfall.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 8.3, 8.4, 16.1.1):
150.
Please confirm that Value-Addition damages are assessed against the committed quarterly Value Addition, and clarify how the “six consecutive quarters” Event-of-Default count is reset (i.e. whether a single compliant quarter resets the count).
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 8.3, 8.5, Schedule-E):
Paragraph 2 of Schedule E provides that Subsidy is computed on the Value Addition achieved during the period or the Value Addition specified in the technical bid, whichever is lower, so that
151. any shortfall in Value Addition is, to that extent, already reflected in the Subsidy computed for the relevant quarter. Clause 8.3 separately provides for the deficit between Committed Value Addition and actual Value Addition to be deducted from the Subsidy for that quarter as Damages.
Kindly clarify whether the deduction under Clause 8.3 operates in addition to the restriction already built into Schedule E.
Document: PA Kindly refer Appendix of this document.
Query (Clause: 8.3, Schedule-B, Schedule-E, Schedule-J):
152. Ki ndly clarify how the model-wise Value Addition percentages certified under Schedule-J will be aggregated into the single Value Addition figure tested against the Technical Bid commitment under Clause 8.3, and whether the Schedule-E multiplier will be applied model-wise or on the blended Value Addition for the quarter.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 9.2, 11.1.1, 12.5, 13.3(c), Schedule-E, Schedule-I):
153.
Kindly clarify the consequence for the Beneficiary Firm where a customer redeploys ACCs to a non-grid-scale application after sale and certification, and confirm that the Beneficiary Firm’s obligation is discharged upon sale and submission of the required documents. Kindly also Page 53 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. confirm whether an end-use undertaking from the purchaser at the time of sale will be accepted for this purpose.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 9.2, 11.1.1, 12.5, 13.3):
154.
Will ACCs remain eligible where the buyer is a battery-pack manufacturer, BESS integrator, EPC contractor or distributor, provided ultimate use is Grid Scale Stationary Storage? If yes, prescribe end-use evidence, declarations and serial / batch traceability.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Article 10, 11, Schedule-E):
Document Text: "…ratio of 'actual value added' to the sale value (net of returns, price adjustments, discounts, etc.) of the said goods (ACCs), excluding indirect Taxes… Less: Cost of raw materials and/or packing materials consumed in the said goods… Less: expenses incurred in foreign currency for royalty or technical know-how…"
Query:
The current Schedule-E methodology computes Value Addition quarter-on-quarter without any
155. normalisation for macro variables outside the Beneficiary Firm's control — specifically USD- INR movement and reference international prices of key input raw materials. Accordingly, we
request: (i) confirmation of whether any adjustment or true-up mechanism exists in the current drafting for FX or RM price fluctuations that materially move achieved VA relative to committed VA; and (ii) if not, the introduction of a benchmarking mechanism within Schedule-E — operating symmetrically — whereby extreme movements against a reference USD-INR band or reference international RM prices trigger a two-way adjustment to computed VA. The
Beneficiary Firm accepts that this operates in both directions: upward normalisation where FX/RM spikes depress computed VA, downward normalisation where FX/RM troughs inflate computed VA.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Article10, 11, Schedule-E):
156.
Document Text: Schedule-E, Clause 3(h), Page 65 “Additionally, where the Beneficiary Firm is also engaged in manufacture of battery packs and a Value Addition till the cell stage could not Page 54 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. be determined with the abovementioned approach, the percentage of value added calculated (as above) should be reduced by the fraction of battery pack in the total battery value produced to calculate the percentage of value added to manufacture ACCs. For example, if the Value Addition at the battery level is x%, and the fraction of battery pack in the total battery value produced is 34%, then the Value Addition at the cell level shall be (x-34)/ (100-34) %. The Beneficiary Firms shall be submitting to the Government, the information pertaining to the fraction of battery pack in the total battery value produced in India.”
Query:
The Cell Prices are subject to Forex rate as well as Commodity Prices in the international Prices and hence in a scenario where the Beneficiary Firm captively consumes ACCs into Grid Solutions (Cabinets/ containers) to be sold to GSSS customers (no separate cell invoice), the mentioned methodology does not provide right calculation. Illustration for the same can be reviewed below:
In USD/ kWh Sce-1 Sce-2 Sce-3 Cell Cost 85 50 38 Non-Cell Cost 20 20 20 Pack/ System Price 105 70 58 VA at Cell 40% 40% 40% VA at non-cell 80% 80% 80% VA at Pack level 48% 51% 54% % Pack Value 19% 29% 34% Page 55 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Cell VA per PA formula 35% 32% 29% Therefore, in the event of no separate cell invoices and consumption of cells within the entity of the Beneficiary Firm, request you to accept Statutory Cost Auditor certificate as the basis for arriving at Cell Value Addition.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Article 10, 11.2.1, Schedule-C, Schedule-H):
Clause 11.2.1 provides that the Subsidy shall be disbursed quarterly upon the Beneficiary Firm fulfilling the requirements set forth in Schedule E. We shall be grateful if the Ministry may kindly indicate the period within which disbursement may ordinarily be expected following submission
157. of a complete claim in the format prescribed under Schedule H, so that Beneficiary Firms may plan their working capital requirements accordingly, and whether any provision is contemplated in respect of delay in disbursement. We also note the reference in Schedules C and H to a verification agency appointed by the Ministry, which is to release details of any ineligible claims prior to disbursement. Kindly clarify the role and the timelines applicable to such verification, and the manner in which a Beneficiary Firm may make a representation in the event that any part of a claim is proposed to be treated as ineligible.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: PA Cl. 10.2, 11.1.1, 11.2, 12.3, RFP Cl. 1.2.1):
158. Ki ndly clarify whether Subsidy is payable on eligible ACC sales made after achievement of Milestone 1 but before issuance of the Milestone 1 Completion Certificate, or only on sales made after issuance of the Certificate. If the latter, kindly confirm whether eligible sales during the intervening period can be claimed retrospectively in the first Subsidy disbursement.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 10.2, 11.7, 11.8, Schedule-E, Schedule-G):
159.
Kindly clarify:
(i) whether the ₹362 crore/GWh Subsidy cap under Clause 11.8 is linked to the GWh capacity awarded or the actual ACCs sold; and Page 56 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
(ii) the sequence of application of the Schedule-G multiplier, Subsidy phasing, 20% sale price cap and ₹362 crore/GWh cap while determining the final Subsidy payable.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 10.2, 11.8):
Clause 11.8 provides that cumulative Subsidy shall not exceed INR 362 crore per GWh. Kindly clarify whether the expression "per GWh" refers to (a) each GWh of Committed Capacity
160. in stalled and certified, or (b) each GWh of Advanced Chemistry Cells actually sold during the Term. The clarification is material because, on the second reading, and having regard to the Subsidy ceiling of INR 1500 per kWh under Clause 3.3.2 of the RFP together with the applicable multipliers under Schedule G, the ceiling may be reached well before expiry of the Term, thereby affecting the financial assumptions underlying the Bid. An illustration would be of assistance to Bidders.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 10.3):
161. If Milestone 1 is achieved at the end of the third year, only about four years would remain within the outer limit of seven years. The same investment may therefore earn a smaller benefit purely on account of the starting position, and the year-on-year phasing under Clause 11.5 would apply to those remaining years as well.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 10.3, 11.2.1, Schedule-E):
Where cycle life testing remains in progress during quarters in which eligible sales have occurred,
162. wh ether claims in respect of those earlier quarters may be submitted retrospectively once the certified test result becomes available, subject to the limits in Clauses 10.3 and 11.1.2. when testing may begin, and whether claims may be filed retrospectively. No subsidy claim can be filed without a laboratory result, and samples must come from production batches under three months old. Between them, these two answers are worth more than anything else on the list.
Document: PA The relevant provisions of the bid
163. documents are self-explanatory.
Query (Clause: 10.3, 11.9.3, 18.5.2, Schedule-N):
Page 57 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
The mechanism by which a true-up under Schedule N is to be settled where the complete cycle life test concludes after the final quarterly disbursement, there being no subsequent quarter from which to recover; and whether any such liability survives beyond the period specified in Clause
18.5.2.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 11.1.1):
164.
Please confirm whether ACCs produced and sold from a pilot / pre-rated-capacity line — meeting Schedule G and Schedule D and used for Grid-Scale Stationary Storage — are eligible for Subsidy and count toward Value Addition pending completion of the capacity ramp-up.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: PA Cl. 11.1.1, 12.5):
PA Cl. 11.1.1 expressly restricts eligible ACCs to those “utilized for Grid Scale Stationary Storage applications only”, and the Independent Engineer is specifically tasked (Cl. 12.5) with verifying that ACCs manufactured are sold/used for GSSS applications; “Grid Scale Stationary Storage” is defined by a closed list of grid-connected BESS applications with no reference to EV use.
Clause 11.1.1, Clause 12.5 and definition of "Grid Scale Stationary Storage
165. Th e Programme Agreement presently restricts eligible ACCs to those "utilized for Grid Scale Stationary Storage applications only", with verification by the Independent Engineer regarding their sale/use for such applications. The defined applications appear to primarily cover grid- connected BESS use cases.
Considering that energy storage is increasingly being deployed across C&I, residential, distributed renewable energy, micro-grid and other behind-the-meter applications, which are ultimately connected to and support the electricity grid and contribute to grid flexibility, reliability and renewable energy integration, we request MHI to clarify whether such applications would also be considered eligible under the Programme.
Page 58 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Further, the Government of India is promoting energy storage as an important enabler for renewable energy integration and the broader power sector across multiple segments, rather than limiting its deployment only to utility-scale applications.
We therefore request MHI to suitably expand/clarify the definition of eligible "Grid Scale Stationary Storage" applications to include C&I, residential, distributed and other stationary storage applications which are grid-connected or otherwise contribute to grid integration, flexibility, reliability or renewable energy integration.
This would provide a larger and technology-neutral market for ACC manufacturers, while ensuring that the PU-supported cells contribute to the overall development of India's energy- storage ecosystem.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 11.5):
Taking cognizance of the critical nature of Infrastructure set up for the ACC Gigafactory, it is not
166. po ssible at all to set up the plant before the phasing plan becomes effective as per the clause and start claiming subsidies from year 1. We request that initial period of atleast 18 months should be allowed as lead time for setting up the factory and enable the bidders to achieve the phasing milestones to the maximum possible extent and also judicially justify the proposed PLI Scheme of this critical industry by giving maximum support to Indian industry Provisions of the bid documents shall
Document: PA prevail.
Query (Clause: 11.7):
167.
We request you to please confirm and clarify that for the purpose of Sale of BESS Cells under the Scheme, the export of the cells are allowed which are manufactured under the PLI Scheme of this RFP.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 11.7, Schedule-C):
168.
Kindly clarify whether the 20% cap under Clause 11.7 is tested on a cumulative basis or separately for each quarter as indicated in Schedule-C. If tested quarterly, kindly clarify whether Page 59 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. any Subsidy not payable due to the cap in a particular quarter can be carried forward to subsequent quarters.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 11.7, Schedule-J):
Schedule J of the Programme Agreement contemplates a Beneficiary Firm also engaged in battery-pack manufacturing, with Value Addition determined at the ACC level. Where ACCs
169. m anufactured by the Beneficiary Firm are captively consumed for manufacture of battery packs/BESS for Grid Scale Stationary Storage applications, without a third-party sale of the ACC as such, it is requested that the Government clarify whether such captive consumption/inter-unit transfer of ACCs shall be treated as "sale of the Advanced Chemistry Cell" for the purpose of (i) computing eligible Subsidy under Article 11 of the Programme Agreement, and (ii) the 20% sale- price ceiling prescribed under Clause 11.7.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 11.7, 15.1):
170. As the Subsidy is fixed for the Term with no indexation and Clause 15.1 provides no compensation for Change in Law, we request that appropriate relief be provided for changes in statutory levies/duties, or at a minimum for any change in the GST rate applicable to ACC sales, which directly affects the operation of the 20% sale price cap.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 11.7, Schedule-E, Schedule-J):
171. Ki ndly clarify how the sale price will be determined for sales to group companies, related parties, affiliates or captive offtake entities, and whether an arm’s-length/transfer-pricing methodology will be prescribed for determining the sale price for both Clause 11.7 and Value Addition computation.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 11.7, 13.3, Schedule-B, Schedule-E, Schedule-J):
172.
Bidders may manufacture Advanced Chemistry Cells and also integrate them into their own battery energy storage systems. Clarification is sought on whether cells so applied are treated as Page 60 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. “sold”, in each of the following three structures, and on the value at which they are to be recognised for the purposes of Schedule E paragraph 2, Schedule E 3(c) and Clause 11.7: (a) Transfer within a single GST registration of the Beneficiary Firm, where no supply arises and no tax invoice is issued. (b) Transfer between distinct GST registrations of the same legal entity, being a deemed supply under Schedule I of the Central Goods and Services Tax Act 2017, supported by a tax invoice and a value determined under the applicable valuation rules. (c) Sale to a related party in the same group, at arm's length, supported by a tax invoice and recognised as turnover in the Beneficiary Firm's audited accounts. (d) Supply of a complete battery energy storage system to an unrelated customer, where Advanced Chemistry Cells manufactured by the Beneficiary Firm are incorporated as a component of that system. In this case the Ministry is requested to confirm that the cells so incorporated are treated as sold, that the quantity is recognised on the kWh of cells incorporated as required by Schedule B Annex I item (b), and to specify how the sale value of the Advanced Chemistry Cells is to be determined where the invoice to the customer is raised for the system as a whole. (e) Whether, where the Beneficiary Firm maintains separate books of account and issues tax invoices for the cell manufacturing operation such that Value Addition at the cell stage can be determined directly under Schedule E 3(c), the adjustment at Schedule E 3(h) is inapplicable — consistent with Schedule J, which applies items
(x) and (xi) only where “Value Addition cannot be ascertained at the cell level”. (f) Confirmation that the fraction “f” referred to at Schedule E 3(h) and Schedule J item (xi) is computed by reference to value, and not to capacity or physical content. The point is material to the structure a Bidder must adopt before submitting its Bid, and to the Value Addition it is able to commit at Appendix V.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 11.9, Schedule-B, Schedule-D, Schedule-G):
Kindly confirm whether Energy Efficiency and Cycle Life are required to be demonstrated
173. separately for each cell model/chemistry, and specify the process and maximum timeline for bringing a new cell model/chemistry introduced during the Term within Subsidy eligibility.
Kindly also confirm whether Subsidy on such cells sold before certification can be claimed retrospectively once certification is obtained.
Document: PA The relevant provisions of the bid documents
174. are self-explanatory.
Query (Clause: 11.9, Schedule-D, Schedule-N):
Page 61 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Kindly specify the maximum period within which the complete Cycle Life test is required to be completed following provisional certification based on the partial Cycle Life test, and clarify whether provisional Subsidy disbursement will continue during the intervening period and whether any retention/hold-back will apply pending completion of the test.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: 11.9, Schedule-D, Schedule-E):
Whether the partial cycle life test, the high-rate discharge test and the Energy Efficiency test may be commenced on cells manufactured prior to issuance of the Milestone 1 Completion Certificate,
175. including cells produced during trial or initial production runs; and whether the resulting certified result may be relied upon for Subsidy determination from the first eligible quarter. when testing may begin, and whether claims may be filed retrospectively. No subsidy claim can be filed without a laboratory result, and samples must come from production batches under three months old. Between them, these two answers are worth more than anything else on the list.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 11.9.1, Schedule-D, Schedule-N):
Document Text: "The Parties agree that until the results of the complete cycle life test set forth in Schedule – D is determined, the Subsidy disbursed to the Beneficiary Firm shall be determined by the partial cycle life test in accordance with Schedule – D. The Subsidy disbursed based on the output of the partial cycle life test would be provisional, subject to the Advanced Chemistry Cell demonstrating the quoted cycle life”
176.
Query:
For the purposes of provisional subsidy disbursement under Schedule-N, we propose the following also to be accepted as a provisional evidence base for arriving at cycle-life and energy-
efficiency : Test results conducted by the Beneficiary Firm on the cells manufactured at a Pilot Line owned by the Beneficiary Firm or manufactured at a third-party pilot line based on the in- house Cell Design of the Beneficiary Firm. Such tests shall be conducted at the Beneficiary Firm’s in-house NABL accredited testing facility (on cells of the same design and specification as SOP cells) or with a third-party NABL-accredited laboratory. Kindly confirm.
177. Do cument: PA Query not pertaining to the bid documents.
Page 62 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Query (Clause: 11.9.1, Schedule-D):
Whether a list of empanelled laboratories will be notified and, if so, by when; and the laboratories presently accredited by NABL for testing to IS 17882:2022, together with any guidance on available testing capacity.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 12.3, Schedule-D):
Document Text:
Clause 1.4.2.1, “Testing of the cycle life of the cells, at the specified DoD levels, shall be carried out up to completion of 50% of the number of cycles as specified by the manufacturer. Based on the performance of the cell at the end of 50% of the specified number of cycles, projections shall be made to arrive at the total cycle life of the cell, considering an EoL capacity of 75% of the initial rating of the cell”. Clause 12.3: "The Subsidy shall be disbursed based on the output of the partial cycle life test, subject to true-up upon completion of the complete cycle life test."
Query:
The requirement to complete testing to 50% of the claimed cycle life before initial subsidy disbursement imposes a delay of 1.5 to 2+ years from commencement of commercial production,
178. and directly impacts Beneficiary Firms claiming higher-performance cell bands — since the delay scales with the claimed cycle number. This defers subsidy realisation into the tail of the 5- year disbursement window and materially undermines the Programme's cash-flow assumptions for the Beneficiary Firm, particularly after Investment of ₹150 crore per GWh has already been made. We request the following approach to be accepted : Provisional subsidy disbursement to be permitted based on the Product Specification and after an initial testing window of 400 cycles or 90 days from commencement of commercial production, whichever is earlier— this shall be sufficient to establish the degradation trend and extrapolate cycle life projection and to determine provisional matrix multiplier based on the same. Once the 50% cycle test milestone is reached, and is certified by the Independent Engineer, the matrix multiplier as well as corresponding subsidy payout can be retrospectively adjusted . This preserves the Ministry's protection against over-claim while enabling subsidy disbursement to commence in line with the Milestone 1 date, and rewards Beneficiary Firms claiming higher-performance cell bands rather than penalising them. Kindly confirm.
Page 63 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
The relevant provisions of the bid
Document: PA documents are self-explanatory.
Query (Clause: 12.3):
179.
Please clearly specify what is the %age of phased capacity out of the total committed capacity quoted in technical bid as the same is not mentioned specifically anywhere in the RFP document or the draft Programme Agreement
Document: PA Provisions of the bid documents shall prevail.
180. Q uery (Clause: Article 13.3, Schedule-E):
Please confirm whether captive sales / stock transfer of BESS is permitted
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 14.2):
14.2 A Force Majeure Event shall mean one or more of the following acts or events:
(a) act of God, pandemic, epidemic, extremely adverse weather conditions, lightning, earthquake, landslide, cyclone, flood, volcanic eruption, chemical or radioactive contamination or ionising radiation, fire or explosion (to the extent of contamination or radiation or fire or explosion
181. or iginating from a source external to the Project);
(c) any delay or failure of an overseas Contractor to deliver equipment in India if such delay or failure is caused outside India by any event specified in subclause (a) above and which does not result in any offsetting compensation being payable to the Beneficiary Firm by or on behalf of such Contractor;
Rationale: India is facing lot of restriction from China on supply of critical equipments including that of ACC. It is therefore requested to keep the Force Majeure clause to include such eventuality.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 14.2):
182.
Request that the definition be amended from “shall mean” to “shall include”, so that the events of Force Majeure listed are inclusive rather than exhaustive.
Page 64 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: 14.2):
183. Su b-clause (c) presently covers delay/failure of an overseas Contractor only where caused by an event under sub-clause (a). Request that this be widened to cover delay/failure of an overseas Contractor caused by any of the Force Majeure events listed in Clause 14.2, and not sub-clause
(a) alone.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Article 15, 15.1):
184.
Request that, in addition to the cost-neutrality provided under Clau5.1, the Beneficiary Firm be granted relief / extension of time for delay in performance of its obligations (Milestones, Conditions Precedent, etc.) caused by a Change in Law event.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Article 17):
Existing Provision:
Disputes unresolved through conciliation within 15 days proceed directly to the courts at New Delhi; no arbitration mechanism is provided.
185.
Bidder's Pre-Bid Query / Suggested Clarification:
Kindly consider providing for arbitration as the dispute resolution mechanism for disputes remaining unresolved through conciliation, instead of requiring the parties to approach courts directly. An arbitration mechanism would provide a structured, time-bound and specialised mechanism for resolution of commercial and technical disputes arising under the Programme Agreement.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Schedule-B):
186.
Document Text: Article 11, Clause 11.2.1 — Page 29 “The Subsidy to be paid to the Beneficiary Firm shall be disbursed quarterly upon the Beneficiary Firm fulfilling the requirements set forth Page 65 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. in Schedule – E.” Article 11, Clause 11.2.2 — Page 29 “The Beneficiary Firm shall, in addition to the documents specified in Clause 13.3, furnish a letter requesting the Government to disburse the Subsidy in the format as prescribed in Schedule – H, a Subsidy determination form in the format as set forth in Schedule – B, an undertaking certifying the parameters for disbursement of the Subsidy have been met in the format as prescribed in Schedule – I, the commensurate Milestone Completion Certificates (in the format as prescribed in Schedule – O) issued by the Independent Engineer, an undertaking certifying the Value Addition in the format as prescribed in Schedule – J.” Schedule-B / Subsidy Determination Form — Page 46 “Percentage of Value Addition (as per certificate for Value Addition in India), or the Value Addition specified in the technical bid of the Beneficiary Firm, whichever is lower:”
Query:
Please confirm the frequency of Value Addition verification under the Programme — specifically that (i) VA is verified quarterly at each subsidy claim, with the VA percentage for that quarter scaling the subsidy payable for the same quarter, (ii) at Milestones 1 and 2, cumulative VA is separately certified against the mandatory floors, and (iii) quarter-to-quarter fluctuations in domestic content — arising from supplier localisation ramp, seasonal sourcing shifts or one-off import events — are absorbed naturally through the quarterly measurement without any carry- forward or averaging mechanism between quarters.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Schedule-B):
Document Text: "Percentage of Value Addition (as per certificate for Value Addition in India), or the Value Addition specified in the technical bid of the Beneficiary Firm, whichever is lower."
Query:
The "whichever is lower" cap deprives the Beneficiary Firm of subsidy on Value Addition
187. genuinely achieved above the committed level, while under-achievement of committed VA is already separately and adequately addressed by the shortfall damages regime under Article 8.3.
This creates a one-sided asymmetry — under-performance is penalised, but over-performance is not rewarded — contrary to the Programme's stated intent of maximising domestic manufacturing effort. We hence recommend that subsidy shall accordingly be computed on the actual Value Addition certified for the claim period, without a cap linked to the Technical Bid. Kindly amend the referenced clause to delete the phrase "or the Value Addition specified in the technical bid of the Beneficiary Firm, whichever is lower".
Page 66 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Schedule-B, Schedule-H, Schedule-J):
188.
The issuing authority, the application procedure, the criteria and the expected timeline for issue of the Subsidy eligibility certificate; whether it is issued once or is subject to periodic renewal; and whether its issue is a condition of the first quarterly claim.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Schedule-D):
Document Text: “End-of-life capacity for testing shall be ‘75% of initial capacity and would be measured in Wh."
189.
Query:
We request the Ministry to revise the End-of-Life threshold under Schedule-D from 75% to 70% of the initial rated capacity in Wh. Commercial grid-scale storage solutions and Indian utility / SECI BESS tenders typically define usable capacity down to 70% state-of-health. Kindly Confirm.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Schedule-D, Schedule-N):
Document Text: “1.4.4.1 As the cycle life testing is a time taking process, there is need to develop a predictive testing that can predict cycle life of ACCs in a timeframe which would be similar to the time frame for conducting the Energy Efficiency. The result of predictive testing can be considered by the program administrator to allow the manufacturer to qualify for Subsidy. This mechanism will help to avoid delay in disbursing of incentive to manufacturer”
190.
Query:
We request the Ministry to publish, prior to bid submission, the framework for accelerated and predictive cycle-life testing methodologies anticipated under Schedule-D Clauses 1.4.4 and 1.4.5 — including (i) permissible protocols (e.g., elevated C-rate, elevated ambient temperature) and their limits; (ii) the correlation and validation approach against the standard 0.5C / 25°C / 80% DoD protocol; and (iii) the process by which such methodologies will be notified and take effect.
Publication of the framework in advance will enable Beneficiary Firms to plan cell design and Page 67 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. testing infrastructure accordingly, and prevent Schedule-D testing timelines from delaying subsidy disbursement.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Schedule-D):
Document Text: "The energy efficiency (η) shall be defined as shown in the formula below: η = (E − E ) / (E + E ) × 100, where E is the energy output, E is the energy input, and E o aux−O I aux−I o I aux−O and E are the auxiliary energy consumption during discharge and charge respectively." aux−I
191.
Query:
The E_aux terms apply to battery systems with external auxiliary energy consumption (e.g., pumps in flow batteries, external thermal management). For a lithium-ion cell tested at cell level, energy input and output are measured directly at the cell terminals with no attributable auxiliary consumption. We understand that for Li-ion ACCs tested at cell level under Schedule-D, E aux−O and E shall each be treated as zero, and η = (E / E) × 100. Kindly confirm.
aux−I o I
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Schedule-D): - Align C-Rates with Application: Delete all rigid references to 0.5C or "2-hour charging." Testing protocols must strictly match the lower C-rates actually utilized in grid-scale energy storage.
- Implement Accelerated Testing (10% Rule): To prevent commercial bottlenecks (provisional subsidy till completion), physical cycle-life testing should be capped at a maximum of 6 months,
192. covering exactly 10% of the manufacturer’s specified cycle life at the designated Depth-of- Discharge (DoD). - Extrapolate End-of-Life (EoL): Total cycle life shall be projected from this 10% test data, calculated against a baseline EoL capacity retention of 65%.
Mandatory Performance Validation:
Start of Life: Delivered energy and power must meet or exceed 100% of the manufacturer's rated specifications.
Page 68 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Projected EoL: Delivered energy must remain at 65% of the initial rated capacity, with power output meeting manufacturer-specified EoL minimums.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Schedule-D):
193.
Kindly clarify the thermal stability/operating temperature range, if any, prescribed or expected for ACCs manufactured for Grid Scale Stationary Storage applications under this Programme, and whether this is tested/certified under Schedule D.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Schedule-D):
Whether the cycle life and Energy Efficiency tests may, and in the case of prismatic cell formats shall, be conducted with the cells held in the mechanical compression fixture specified by the manufacturer, consistent with IS 17882:2022 and with prevailing practice for that format; and whether the test report is to record the fixturing condition applied. Published cycle life for
194. prismatic cells is universally stated under compression. Testing without compression produces a materially lower result, and the point is presently unaddressed. mechanical fixturing in the Schedule D cycle-life test. Schedule D prescribes temperature, C-rate, depth of discharge, end of life, rest periods and sampling, but says nothing about compression. Published cycle life for prismatic cells is universally stated under fixture. If a laboratory tests unfixtured, the measured result will be materially lower, and that result determines our position in the ACC matrix and therefore the subsidy rate.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Schedule-D):
Whether cycle life and Energy Efficiency results obtained at a higher C-rate or a higher Depth of
195. Di scharge at the manufacturer's request are accepted at face value for the purpose of positioning in the ACC matrix, without normalisation or adjustment to the standard condition. what the subsidized article actually is. Schedule G refers to "ACCs and integrated advanced batteries (Single Units)". That expression appears once in the entire tender and is nowhere defined. We have asked the Ministry to fix the boundary.
Page 69 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Schedule-D, Schedule-N):
196.
Confirmation that the methodology at Schedule N is the sole and exhaustive basis upon which any penalty or true-up arising from a change in position in the ACC matrix will be determined.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Schedule-D, Schedule-G):
197.
Confirmation that no product or performance warranty obligation arises under the Programme Agreement in respect of cells sold under the Programme, performance being addressed instead through the testing, true-up and damages provisions.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Schedule-D):
We request that Digitalisation of manufactured cells be made mandatory during the establishment
198. of ACC Manufacturing line “molecules-to-machines” intelligence layer that gives every battery a verifiable, living identity; much like India’s proposed Battery Aadhaar concept initiative.
Further additionally, we request that the predictions of life cycle from the embedded Digital layer can be accepted as a compliance of complete life cycle test
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Schedule-D, Schedule-E):
Schedule-D prescribes testing requirements for "cells" and Schedule-E requires the final process of "manufacture" to be undertaken in India for Value Addition purposes. In the context of Flow
199. Ba ttery technologies (including Vanadium Redox Flow Batteries), which are designed, manufactured and commercialised through an integrated architecture comprising electrochemical cells, stacks, electrolyte systems and balance-of-plant components, kindly clarify:
a. Whether the term "cell" for the purposes of testing, certification and performance evaluation under Schedule-D should be interpreted as an individual electrochemical cell, cell stack, module or an integrated battery system;
Page 70 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. b. Whether technology-specific testing methodologies and performance parameters would be applicable to Flow Battery technologies where certain testing requirements prescribed under Schedule-D may not be directly applicable to Vanadium Redox Flow Batteries; and c. Whether the requirement of "manufacture" under Schedule-E would be regarded as fulfilled where key manufacturing activities relating to electrolyte preparation, electrode processing, membrane integration, stack assembly, module assembly and system integration are undertaken within India.
In absence of technology-specific provisions, kindly confirm the basis on which cycle life, energy efficiency, rate of discharge, depth of discharge, test methods and other performance parameters would be assessed for Vanadium Redox Flow Batteries technologies.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Schedule-D):
200.
As per Clause 1.4.1.1, end of life capacity shall be “75% of initial capacity”. Please confirm if “initial capacity” is the rated nominal capacity, or the initial capacity at the specific DoD considered for testing?
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Schedule-D):
201. As per Clause 1.4.2.1, energy delivered at the end of 50% of cycle life should be at or above 90% of rated capacity. However, since the end of life is at 75% of rated capacity, 50% cycle life would correspond to 87.5% of rated capacity (since linear extrapolation is considered in Clause 1.4.2.4).
Please check and confirm.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Schedule-D):
202.
With reference to Clause 2, kindly confirm at which stage of the cycle life of the cell are we required to perform energy efficiency test.
The relevant provisions of the bid documents
203. Do cument: PA are self-explanatory.
Page 71 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Query (Clause: Schedule-D):
As per Clause 3.1.c, periodical measurement of energy capacity of the cell is required after every 500 cycles. Do we need to do this periodic measurement at 100% DoD, or the same DoD used for other cycle life testing?
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Schedule-E):
204.
Please clarify the definition of the "fraction of battery pack in the total battery value". Does it include 100% of the Pack (excluding the cell cost)?
Document: PA Query (Clause: Schedule-E): Provisions of the bid documents shall
205. prevail.
Currently, Clause 3(h) provides guidance for Value Addition calculation if battery pack is manufactured. Please confirm if this calculation can be extended to include BESS as well.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Schedule-E):
206.
Kindly consider exclusion of materials for which no domestic source is available in India (e.g., Lithium, Copper, etc.) from the Value Addition calculation
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Schedule-E):
207. "Cost of material whose source of origin cannot be ascertained (beyond prescribed threshold)":
Please provide further explanation for this statement and the prescribed threshold applicable.
Kindly also provide an illustrative example to explain the application of this statement.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Schedule-E):
208.
It is requested to provide a sample numerical calculation illustrating the step-by-step determination of 'Value Addition' using the prescribed formula.
Page 72 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Specifically, it is requested to demonstrate how domestic raw material costs, indigenous component integration, foreign currency debits, and ancillary value additions are factored into the net sale value.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Schedule-E):
209.
Please confirm that value addition undertaken by an indigenous (Indian) vendor on inputs supplied to the Beneficiary Firm (e.g. cathode, electrolyte) is counted toward the Firm’s Value Addition, and indicate the certification applicable.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Schedule-E, Schedule-M):
210.
Please confirm that where an imported raw material is processed into a component in India, only the imported input value is excluded and the domestic conversion is credited as Value Addition.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Schedule-E):
Existing Provision:
211. Te chnology Fee / Royalty and DVA Bidder's Pre-Bid Query / Suggested Clarification:
Please clarify how payments made to an overseas technology partner towards technology transfer fees, royalty, technical know-how or technology licence fees will be treated while calculating Value Addition.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Schedule-E):
212.
Document Text: "…Cost of raw materials and/or packing materials consumed in the said goods…
Less: Cost of fuel consumed, if eligible for GST input credit… Less: Cost of material whose source of origin cannot be ascertained (beyond prescribed threshold)." Page 73 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Query:
Please confirm the Value Addition treatment of the following domestic cost elements:
(i) Post-shore Indian logistics — inland freight, warehousing, port handling, customs clearance and insurance rendered by Indian providers — retained as Indian value addition;
(ii) Freight and insurance on imported inputs — DAP/DDP (paid to foreign supplier), CIF (in foreign invoice), FOB (arranged with Indian provider) — please clarify treatment per Incoterm; and
(iii) Fuel, power and electricity consumed at the Mother Unit — as electricity and most fuels attract no creditable GST, retained as Indian value addition (not deducted under the fuel-with- GST-credit line).
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Schedule-E):
Existing Provision: “Cost of material whose source of origin cannot be ascertained (beyond prescribed threshold)” is
213. de ducted from actual value added; no numeric threshold or ascertainment methodology specified.
Bidder's Pre-Bid Query / Suggested Clarification:
Kindly specify the numeric threshold and the prescribed documentation/methodology for ascertaining the “source of origin” of materials (e.g., vendor declarations, GST/e-way bill records, customs documentation or other prescribed evidence), since such deduction directly reduces the Value Addition percentage and consequently impacts the Subsidy payable.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Schedule-E, Schedule-M):
Document Text: "Value Addition to be computed as per the methodology set out in Schedule-E
214. an d as specified in Schedule-M The amount of Subsidy to be disbursed would be calculated as
following: Formula for calculation: Fixed amount per kilowatt hour or effective subsidy X
(multiplied) Percentage of Value Addition achieved during the period or the Value Addition specified in the technical bid of the Beneficiary Firm, whichever is lower X (multiplied) Actual production of Advanced Chemistry Cell sold (in kWh).." Page 74 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Query:
We request the Ministry to publish, prior to bid submission, worked illustrations and step-by-step methodology for computing Value Addition under Schedule-E, covering:
(i) treatment of each cost element — raw and packing materials, imported inputs across Incoterms, domestic freight and logistics, fuel and power, foreign-currency royalties and technical know-how, and untraceable-origin consumables;
(ii) the add-back for indigenous manufacturers' certified value addition, including at multiple tier levels;
(iii) a worked illustration of how the Schedule-E 3(h) formula derives cell-level Value Addition from container-level sales; and (iv) reconciliation methodology between computed Value Addition and figures reported in audited financial statements and GST returns.
Published illustrations will ensure consistent computation across Beneficiary Firms and reduce post-award interpretive disputes.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Schedule-E, Schedule-O, Schedule-P):
Document Text:” Clause 3(d): “'Actual value added by the indigenous manufacturers' is 'actual value added' (as per the above formulae) by such units in relation to sale (net of returns, price adjustments, discounts, etc.) considered by the Mother Unit (for computation of the 'actual cumulative value added' by the Mother Unit). The value (in absolute terms) of ‘Actual value added by the ancillary unit or domestic manufacturers' may be validated basis the statutory
215. auditor's certificate received from the respective indigenous manufacturer i.e., ancillary unit or domestic manufacturers.” Clause 3(e): “The certificate from the statutory auditor may not be required where Value Addition by the indigenous manufacturer i.e., ancillary unit or domestic manufacturers is less than 2% (two per cent) (viz. calculated as percentage of actual value added by indigenous manufacturers to the sale value (net of returns, price adjustments, discounts, etc.) of ACCs manufactured by Mother Unit) or INR 2,00,000 (Rupees two lakh) (gross amount), whichever is lower, in the corresponding period.” Clause 3(f): “The ultimate onus to validate the Value Page 75 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Addition by indigenous manufacturers i.e., ancillary unit or domestic manufacturers would remain on the Beneficiary Firm.”
Query:
For determining Value Addition under Schedule-E, we understand supplier value-addition declarations and statutory-auditor certificates are to be obtained from direct (Tier-1) indigenous manufacturers. Please confirm:
(i) the required format for such supplier certificates — whether Schedules O and P suffice or a separate format is to be prescribed;
(ii) the traceability expected — We understand it is at Tier-1 level only; and
(iii) the process and remedies available to the Beneficiary Firm where a Tier-1 supplier's certified value addition is subsequently found to be inaccurate, given the Beneficiary Firm's good-faith reliance on such certification.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Schedule-E, Schedule-J):
216. Ki ndly clarify whether any normalisation or adjustment mechanism will be considered for changes in raw material prices and ACC selling prices while calculating Value Addition, where such changes are not attributable to any change in the level of manufacturing activity undertaken in India.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Schedule-E, Schedule-J):
217.
Kindly clarify whether material procured from an Indian supplier who has itself imported the underlying material will be treated as domestic or imported material for Value Addition purposes, and specify the documentation required to establish the source/origin of such material.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Schedule-E, Schedule-J):
218.
Kindly clarify whether inter-company/group-company transactions involving raw materials, intermediate products or finished ACCs will be considered at actual transaction value, cost or an Page 76 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. arm’s-length value for Value Addition computation, and confirm the documentation required to support the basis adopted.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Schedule-E):
Document Text: Schedule-E, Clause 3(c), Pages 63–64 says that the calculation deducts: “Less:
Cost of raw materials and/or packing materials consumed in the said goods (i.e. in the final sale price of the goods sold) to be calculated in terms of generally accepted costing principles"
Query:
219.
During the SOP-to-stabilisation period (typically the first 4–6 quarters of commercial production), scrap rates run at 30–40% due to process learning inherent to cell manufacturing; even at maturity, industry scrap rates typically stabilise at 8–12% after many years. If unadjusted, this scrap directly deflates computed Value Addition and can push a Beneficiary Firm below the 25% Milestone-1 floor purely due to normal manufacturing behaviour, not manufacturing effort.
We hence propose that the "cost of raw materials consumed" under Schedule-E exclude the cost attributable to scrap, with scrap quantified against the Beneficiary Firm's own quarterly production records and certified by the statutory auditor. Kindly confirm.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Schedule-E):
220.
Schedule E- Value Addition In cases where cell and battery packs are manufactured in the same entity, kindly elaborate with an example on (a) how the value addition will be calculated and
(b)sale price to be considered for subsidy calculation?
Document: PA Query (Clause: Schedule-E): Provisions of the bid documents shall
221. prevail.
Is six-digit HSN change mandatory for every input? Where input and ACC share an HSN but substantial Indian processing creates a distinct commercially identifiable ACC, can manufacture and Value Addition still be recognised?
Document: PA Provisions of the bid documents shall
222. prevail.
Query (Clause: Schedule-E):
Page 77 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Is the Bid location and State binding? If land is unsuitable or approvals/utilities/State support are unavailable, may the Mother Unit move within the State or to another State? Specify approval, conditions and effect on Appointed Date and milestones.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Schedule-E):
223.
May the Beneficiary Firm introduce a new chemistry, cell format or product on the same Dedicated Facility? Specify approval, fresh testing and whether subsidy multiplier is determined separately for each tested product.
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Schedule-G, Schedule-M):
Kindly clarify whether the Programme prescribes any requirement or preference as to
224. specification limits for cell geometry (L × B × H), individual cell capacity, or charge/discharge (C-rate) performance limits, or whether Bidders retain discretion to select these parameters
provided the Schedule G/Schedule D performance thresholds (Energy Efficiency and cycle life) are met.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Schedule-K):
225.
Kindly confirm if bidder will be allowed to change the details related to project location, pert chart, timelines etc. as declared under schedule K once declared.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Schedule-K):
Schedule K construction period contradiction with Investment definition
226. Su ggestion: This line to be edited from “The construction period of the Project shall commence from the Appointed Date” to “The construction period of the Project shall commence from the Appointed Date. In case of Brownfield Project, construction prior to LOA issuance shall also be eligible”
Rationale:
Page 78 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. a) This line in Schedule K ties the construction period to the Appointed Date, while the "Investment" definition (PA Article 1.1) measures Investment from the earlier date of LOA issuance.
b) We need to clarify whether Investment/construction activity between LOA issuance and Appointed Date counts toward the minimum Investment and Milestone 1 requirements c) Moreover, we would prefer that investment prior to LOA issuance is also eligible (as per rationale given in Sr. 2.3)
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Schedule-M):
Under Clause 3.2.2, Value Addition currently carries 70% weightage within the Technical Bid (against 30% for Committed Capacity). It is requested that the Government consider increasing the Value Addition weightage from 70% to 80% within the Technical Bid, in recognition of domestic Value Addition as the prime focus, and to give further impetus to the Programme’s
227. indigenisation objective. Within this enhanced 80% weightage, it is further requested that a differential credit be applied — 60% where Value Addition is achieved through indigenisation alone, and 100% were achieved through indigenisation coupled with process/product technology patented in India — to better recognise genuine technological self-reliance over assembly-level indigenisation. May clarify whether such modifications may be considered, and if so, Kindly clarify whether such modifications may be considered, and if so, how patent-linked Value Addition would be certified for this purpose.
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Not specified):
228. Ki ndly clarify whether development of cell/battery materials (e.g., cathode or anode active materials) common to both lithium-ion and sodium-ion cell components would qualify with additional weightage under the technical evaluation component of "Advanced Chemistry Cell manufacturing" for the purposes of this Programme.
The relevant provisions of the bid
Document: PA documents are self-explanatory.
229.
Query (Clause: Not specified):
Page 79 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
In the event of forfeiture of incentive due to non-achievement of milestones or inability to remedy the Event of Default, would the Beneficiary firm be required to refund the subsidy received till the date of such termination of Agreement?
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Not specified):
Value Addition:
1. Whether the Value addition will include the entire margin/ profit earned by the Bidder or not, specifically since the Programme Agreement states that in case of non -origin material, corresponding sale value will be reduced
2. Whether the certificate from the vendor for value addition is only suffice, and will be sole truth of source or other document/ information will be required
3. Where vendor is procuring goods locally from other supplier, whether verification at next level and certification is also required or not?
230.
4. Kindly confirm in case if the bidder/manufacturer purchases the raw material from a supplier who may have procured / imported the material from some other country, in that scenario, how the local value addition will be calculated. Will the zero point be considered as the company from where Manufacturer have procured
5. Kindly confirm if the value addition will be calculated based upon the actual value of end product or the sale value of Product which will include the profit margins in it
6. Kindly confirm if bidder sells the end product to its group company / sister concern, how the same will be treated
7. Kindly confirm if Bidder consumes Cell for BESS, then the same is permitted under the Scheme and in this case, how the value addition will be computed?
8. What documentations are required to demonstrate that Cell are consumed for BESS only ?
Document: PA The relevant provisions of the bid documents
231. are self-explanatory.
Query (Clause: Not specified):
Page 80 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Capacity addition - Whether the year 1 in technical bid refer to the 1st year from the date of award or date of commencement of the production within the given timelines
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Not specified):
232.
We request you to clarify whether a new SPV is required to be formed by the bidders or the same entity can set up the unit
Document: PA Query not pertaining to the bid documents.
Query (Clause: Not specified): "Request to kindly confirm on below points: 1. Kindly confirm if bidder can source the machinery
233. to setup manufacturing plant from land border countries or not. E.g. Importing the machinery from China. 2. Kindly confirm if bidder can source the raw material for manufacturing during the manufacturing stage from land border counties or not say. China or other countries. 3. Kindly confirm the process to be followed if we intend to source the machinery or raw material at later stage for project from countries which shares land border with India."
Document: PA The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Not specified):
234.
Does the committed capacity refer to the capacity committed in technical bid at the end of 2nd year or name plate capacity of the complete facility?
Document: PA Provisions of the bid documents shall prevail.
Query (Clause: Not specified):
235.
Kindly confirm if bidder will be allowed to change the details related to project location, pert chart, timelines etc. as declared under schedule K once declared.
Document: PA The relevant provisions of the bid documents
236. are self-explanatory.
Query (Clause: Not specified):
Page 81 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Could you please clarify the proposed operating conditions for calculating cycle life? (any defined operating voltage ranges, etc)
Document: TA Provisions of the bid documents shall prevail.
Query (Clause: 7.1.1, 7.1.3, 7.2, 7.3.2, 7.4, 7.5, Schedule-A):
We request MHI to kindly provide State-wise details/positions on the land, stamp duty,
237. infrastructure, single-window clearance and other provisions specified in the Tripartite Agreement prior to the Bid Due Date, and confirm that execution of the Tripartite Agreement on the model terms, without additional State incentives, will be acceptable for fulfilment of the Conditions Precedent.
Document: Not specified Provisions of the bid documents shall prevail.
Query (Clause: Not specified):
238. Co nsidering that the DPIIT registration process for transfer-of-technology arrangements may take up to six months, kindly consider extending the Bid Submission Date to December 2026 to provide adequate time to bidders to complete the applicable registration process and submit their bids in compliance with the GFR Order requirements.
Document: Not specified Provisions of the bid documents shall prevail.
Query (Clause: Not specified):
239. Ki ndly clarify whether the Subsidy receivables payable to the Beneficiary Firm under the Programme Agreement may be assigned or created as security in favour of the lenders/financing institutions, including assignment of future Subsidy receivables, for financing of the Project, subject to prior approval/notification to the Government.
Document: Not specified Provisions of the bid documents shall prevail.
Query (Clause: Not specified):
240.
Kindly clarify whether the Programme Agreement and the rights and benefits of the Beneficiary Firm thereunder may be assigned/charged in favour of the Project Lenders or Lenders’ Representative as security for financing of the Project, including assignment of the Subsidy Page 82 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No. receivables, subject to applicable lender documentation and intimation/consent of the Government.
Document: Not specified Provisions of the bid documents shall prevail.
Query (Clause: Not specified):
Kindly clarify whether the Project Lenders/Lenders’ Representative will have step-in/substitution
241. rights in the event of a default by the Beneficiary Firm, including the right to cure the default and/or substitute the Beneficiary Firm with an eligible entity, subject to the approval of the Government. Kindly also clarify whether the Government will be required to provide a notice and reasonable cure period to the Lenders before termination of the Programme Agreement.
Document: Not specified Provisions of the bid documents shall prevail.
Query (Clause: Not specified):
242. Ki ndly confirm whether the Beneficiary Firm/SPV may create a first-ranking security/charge in favour of the Project Lenders over the Project assets, movable and immovable assets, receivables and other project-related rights and benefits, as security for financing of the Project, subject to applicable laws and lender documentation.
Document: Not specified Provisions of the bid documents shall prevail.
Query (Clause: Not specified):
243. Ki ndly clarify whether any rights, claims or security interests of the Government under the Programme Agreement will have priority over the security created in favour of the Project Lenders, and confirm that the lenders’ security shall be recognised and enforceable in accordance with the applicable financing documents and law.
Document: Not specified Provisions of the bid documents shall prevail.
Query (Clause: Not specified):
Kindly clarify that enforcement of security by the Project Lenders, including pledge/enforcement
244. of shares or transfer of the Beneficiary Firm/SPV to a lender-nominated entity pursuant to the financing documents, will not by itself constitute a Change in Ownership or Change in Control,
provided the lender-nominated entity meets the applicable eligibility requirements under the RFP/Programme Agreement.
Page 83 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Document: Not specified Provisions of the bid documents shall prevail.
Query (Clause: Not specified):
245.
Technology Evolution: We seek guidance on the permissibility of changing or upgrading the initially committed ACC chemistry due to rapid market developments without affecting the awarded subsidy or the committed value-addition obligations.
Document: Not specified The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Not specified):
246.
Technology Ownership: Please clarify if a formal technology licensing agreement from a foreign owner is acceptable to satisfy the RFP criteria, or if the Ministry requires the Bidder to exclusively own the underlying cell technology.
Document: Not specified The relevant provisions of the bid documents are self-explanatory.
Query (Clause: Not specified):
247. Va lue-Addition Breakdown: We request details regarding the proportion or value contribution that can be attributed to specific domestic manufacturing processes (such as electrode manufacturing, cell assembly, electrolyte filling, formation/aging, and testing) to meet the mandatory 25% and 40% Value Addition thresholds.
Document: Not specified Provisions of the bid documents shall prevail.
Query (Clause: Not specified):
248. Hu b-and-Spoke Operations: As the RFP permits achieving value addition through indigenous manufacturers in a hub-and-spoke structure, please elaborate on the specific activities permitted outside the mother cell manufacturing facility and the methodology for aggregating the value addition of these indigenous suppliers.
Document: Not specified The relevant provisions of the bid documents
249. are self-explanatory.
Query (Clause: Not specified):
Page 84 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
We have already issued PO's for the Equipment and permitted expenditure as per RFQ that support GSSS cell productions, partial payment already made (but not capitalized in books of account), now we need clarification on following: - a) will total PO value will be qualified for the proposed investment if the items are capitalized post LOA date; or b) only partial payment which are made post LOA date will be qualified for eligible Expenditure for investment to ensure compliance with INR 150 Cr per GWh investment.
Document: Not specified Provisions of the bid documents shall prevail.
Query (Clause: Not specified):
Given our equipment is physically onsite and in installation / ramp-up phase, we seek clarification
250. on the following alternatives (to produce the qualified cell faster than expected) in: - a) Bid will be made by existing company with qualification criteria & if successfully awarded - will create the SPV for the PLI purpose b) SPV will invest required Investment as per PLI including purchase of machines/equipment etc. from the Existing Group Company / bidder). SPV will undertake lease / O&M from other group companies for line operations to fast-track cell production.
Document: Not specified Query not pertaining to the bid documents.
Query (Clause: Not specified):
251.
Introduce a fast-track mechanism for visa and related immigration approvals for foreign technical experts involved (Fastrack Visa Approvals)
Document: Not specified Query (Clause: Not specified): Provisions of the bid documents shall prevail.
252. If the State delays land, utilities, clearances or execution/performance of the Tripartite Agreement despite timely action by the Beneficiary Firm, will the Appointed Date and milestones be extended and will damages or Performance Security invocation be excluded for the corresponding period?
Document: Not specified Provisions of the bid documents shall
253. prevail.
Query (Clause: Not specified):
Page 85 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
We are the Chennai-based OPG Power Group, operating in the power generation and battery storage business. We became aware of the above-mentioned tender yesterday and find that the remaining time is insufficient to prepare a comprehensive submission, which typically requires approximately 10 days. We kindly request an extension of the submission deadline by 15 days to enable our participation. Your assistance in this matter would be greatly appreciated.
Kindly refer Appendix of this document.
Document: Not specified Query (Clause: Not specified):
Whether a Bidder/Beneficiary Firm is permitted to manufacture multiple ACC
254. ch emistries/technologies, including VRFB and other battery chemistries, under the same PLI Project.
If yes, please clarify whether a beneficiary can manufacture VRFB and other battery chemistries under the same PLI project and how the Committed Capacity and Value Addition are to be aggregated across the different chemistries or assessed separately for each chemistry.
The relevant provisions of the bid documents
Document: Not specified are self-explanatory.
Query (Clause: Not specified):
For LFP, the electrochemical cell is clearly identifiable, whereas in a flow battery the stack, electrolyte and tanks together determine the system's energy capacity. Therefore, under the new
255.
ACC PLI scheme, how does the Government define the qualifying ACC unit and calculate the committed capacity, Value Addition and subsidy for a flow-battery/VRFB technology Please clarify the methodology for defining and calculating the Committed Capacity and Value Addition for flow-battery/VRFB technology, including the treatment of the stack, electrolyte, tanks and associated components.
The relevant provisions of the bid documents
Document: Not specified are self-explanatory.
Query (Clause: Not specified):
256. Si nce different chemistries have different cell architectures, how would their committed capacity be measured and reported under the PLI? Please clarify how the Committed Capacity would be measured and reported where different ACC chemistries have different cell architectures and operating cheristics.
Page 86 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Document: Not specified Please refer to the Definition of “Advanced Chemistry Cell/ACC” mentioned in the Query (Clause: Not specified):
Programme Agreement.
Are the flow-battery stacks considered an ACC under the new PLI scheme, or are they considered a component of the BESS?
257. Ar e electrolyte tanks considered part of the ACC manufacturing facility, or are they treated as balance-of-system components? Please clarify whether flow-battery stacks are considered the ACC for the purpose of the PLI Scheme or are treated as components of the BESS, and whether electrolyte tanks and associated electrolyte are considered part of the ACC manufacturing facility or as Balance-of-System components.
Provisions of the bid documents shall
Document: Not specified prevail.
258. Q uery (Clause: Not specified):
Exact definition and eligibility of grid-scale stationary storage applications.
Provisions of the bid documents shall
Document: Not specified prevail.
259. Q uery (Clause: Not specified):
Whether BESS for C&I below a particular MW/MWh threshold qualifies Provisions of the bid documents shall
Document: Not specified prevail.
260. Q uery (Clause: Not specified):
Whether cells sold to an independent BESS integrator qualify Provisions of the bid documents shall
Document: Not specified prevail.
261. Q uery (Clause: Not specified):
Whether cells exported for stationary-storage application qualify Provisions of the bid documents shall
Document: Not specified prevail.
262. Q uery (Clause: Not specified):
Whether BESS for Behind the Meter/BTM application qualifies Page 87 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses S.
Query Response No.
Provisions of the bid documents shall
Document: Not specified prevail.
263. Q uery (Clause: Not specified):
Whether BESS for Home Storage Application qualifies Provisions of the bid documents shall
Document: Not specified prevail.
264. Q uery (Clause: Not specified):
Treatment of export sales.
Provisions of the bid documents shall
Document: Not specified prevail.
265. Q uery (Clause: Not specified):
Exact method of technical qualification.
Page 88 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses APPENDIX Clarification on manufacture and sale of multiple chemistries Bidders / manufacturers have the freedom to manufacture and sell multiple chemistries.
Bidder has to cumulate committed capacities and value addition for all chemistries while committing the same in bidding stage. Bidder has to quote the value addition and committed capacity at the enterprise level / beneficiary firm level considering all types of chemistry envisaged to be manufactured.
For the purpose of determining value addition achieved by the bidder/ manufacturer, following mechanism would be followed:
Wt. Avg. Value Addition calculation: Overall value addition achieved by the manufacturer shall be determined as the weighted average of individual Value Addition of each chemistry.
For e.g., If manufacturer sells “x” GWh of Chemistry 1 with “VA1%” value addition and “y” GWh of Chemistry 2 with “VA2%” value addition during a particular quarter, the weighted average of Value Addition should be calculated as follows:
𝑥∗𝑉𝐴1+𝑦∗𝑉𝐴2 Wt. avg. Value Addition = (𝑥+𝑦) Testing and subsidy disbursement For subsidy disbursement, testing of all chemistries will be undertaken as per testing framework specified in Schedule – D. Manufacturer will conduct separate Energy Efficiency and Cycle Life tests for each of its chemistry.
The final Energy Efficiency and Cycle Life for determination of subsidy shall be the weighted average of individual Energy Efficiency and Cycle Life of each chemistry.
For e.g., if the manufacturer sells “x” GWh of Chemistry 1 having “EE1” Wh/Kg and “CL1” as the Energy Efficiency and Cycle life respectively, and “y” GWh of Chemistry 2 with “EE2” Wh/Kg and “CL2” as the Energy Efficiency and Cycle life respectively, the weighted
average Energy Efficiency and Cycle life in this case shall be:
Page 89 of 90Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advanced Chemistry Cell (ACC) for Grid Scale Stationary Storage Applications under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses 𝑥∗𝐸𝐸1+𝑦∗𝐸𝐸2 Wt. avg. Energy Efficiency = (𝑥+𝑦) 𝑥∗𝐶𝐿1+𝑦∗𝐶𝐿2 Wt. avg. Cycle Life = (𝑥+𝑦)
The formula for subsidy calculation in case of sales of multiple chemistries would be: Fixed amount per kilowatt hour or effective subsidy X (multiplied) Percentage of wt. avg. Value Addition achieved during the period or the Value Addition specified in the technical bid of the Beneficiary Firm, whichever is lower X (multiplied) Actual production of all the Advance Chemistry Cell sold (in KWh).
For determining the subsidy as per above formula, the wt. avg. Energy Efficiency and Cycle Life, as calculated above, will be used to determine the position in the ACC matrix as per Schedule-G. The fixed amount per kilowatt hour is calculated as multiplication of base Subsidy factor for the applicable Advanced Chemistry Cell with effective phasing of base Subsidy as indicated in Article 11 of the Programme Agreement.
Wt. avg value addition of all ACC chemistries as calculated above and actual production of all ACC chemistries during this quarter would be used.
Note: Similar reasoning and methodology shall also be used for truing up of subsidy payments in case of deviation in cycle life test results as mentioned in Schedule-N of the Programme Agreement. ***** Page 90 of 90