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REQUEST FOR PROPOSAL
For
Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advance Chemistry Cell (ACC) under the Production Linked
Incentive (PLI) Scheme
Date: 22nd March 2024
RESPONSE TO THE QUERIES
S. No. Query Response
1. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 1.2):
As per RFP, the non refundable cost of the RFP process is INR 4.5 Lakhs. Is it including or excluding 18% GST?
2. Document: RFP In case of individual
bidder(s), net worth
Query (Clause: 1.1.2 & 2.2.5):
certificate duly signed
In terms of clause 1.1.2 the ‘individual’ can also bid for the PLI ACC bid and would be covered under the definition of
and stamped by
‘bidder’.
applicable auditor
However, in terms of clause 2.2.5 the RFP the bidder is required to submit the Net Worth certificate from the Statutory would also be
Auditor. acceptable.
The terms Statutory Auditor has neither been defined under the RFP nor under the PA. Thus, we request you to please
provide a clarification whether the statutory auditor would also include the ‘tax auditor’ in case of individual as the
Companies Audit would not be applicable on individual. Since this can potentially be an impediment for the individual
bidders. or in a case where a Consortium is relying on Financial Capacity of “Associate” (who is an individual), please
provide the necessary clarification.
3. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 1.1.2):
As per Clause 1.1.1 of the RFP, it is noted that the bidder can be an individual. Consequently, it is possible for an
individual to bid for this ACC PLI.Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advance Chemistry Cell (ACC) under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses
S. No. Query Response
Given this, it is comprehended that all conditions outlined within the bid must be satisfied by the individual, including
the formation of the SPV post the allocation of the bid. Please clarify.
4. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 1.1.3):
"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."
5. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 1.1.3):
As per bidder understanding, the timeline to commission the awarded manufacturing capacity will be 2 years. Kindly
confirm.
6. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 1.1.3):
Kindly confirm if there is any fix timeline to sign this agreement with state govt.
7. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 1.1.3):
Kindly confirm if bidder changes the location at later stage, will this agreement be allowed to revise and resubmit
accordingly.
8. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 1.1.3):
Milestone 1 certificate requires certification regarding necessary investment (PA Schedule O point 1) made at the end of
2 years. Is it mandatory to quote some committed capacity by the end of 2nd year or will the bidder have flexibility to
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S. No. Query Response
quote first committed capacity from 1st quarter of 3rd year?
9. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 1.2.1):
The payment was processed in accordance with provisions of RFS within the timelines to the designated bank account.
We request to kindly issue the tax invoice for the payment made by bidder for accounts purpose.
10. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 1.2.1):
If a bidder’s facility is commissioned in 1 year (4 quarters), the bidder would be eligible to receive subsidy from 5th
quarter as per the subsidy phasing schedule but would the subsidy be disbursed only after Milestone 1 certificate
issuance at the end of 2nd year as per PA 6.2.8 & 10.2?
11. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 1.2.1):
For the Purposes of evaluation, in case of a Consortium, Combined credentials of the consortium members (as
defined hereinafter) Shall be considered for satisfying the qualification criteria specified in Clause 2.2.3. Lead Member
will be the member with highest Net worth.
12. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 1.2.2):
Kindly confirm that for Bid capacity of 10 GWh also, the BG amount applicable will be cumulative 10 Cr and not more
than that.
13. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 1.2.2):
“We request your good office to kindly provide the provisions in RFS and this clause for Bid security to kindly allow
Payment on Order Instrument (POI) as an alternative to submission of Bid security wherein the Bidder also has an
option to submit a letter of undertaking issued by either of the following three organizations, viz. (I) Indian Renewable
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S. No. Query Response
Development Agency Limited (IREDA) or (ii) Power Finance Corporation Limited or (iii) REC Limited.
The same provisions are being followed and acceptable in the bids of entities such as SECI, NTPC, and other REIAs
and tendering authorities as well.”
14. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 2.15.3):
We request your office to kindly allow and provide the two no. of additional days beyond the date of online submission
to facilitate bidders to submit the documents which are required to submit in hard copy.
15. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 2.15.4):
We request your good office to kindly provide the details of concern official to whom we can discuss the queries in
between or contact if required with regard to tender.
16. Document: RFP The relevant clauses are
self-explanatory.
Query (Clause: 2.2.1 d & 2.2.2):
Can a consultant associated with GoI's previous round of Battery PLI be used by a bidder without disqualification?
17. Document: RFP In case of individual
bidder(s), net worth
Query (Clause: 2.2.1(d) and 2.2.3):
certificate duly signed
On perusal of above clause, we understand that the Net Worth of Associate could also be considered evaluating the Net
and stamped by
Worth criteria of Bidder. As per Clause 2.2.1 the Associate may include an individual who controls the bidder. Notably,
applicable auditor
an Associate can be either a corporation (with ownership exceeding 50%) or a non-corporation (with power to direct the
would also be
management and policies of the bidder).
acceptable.
Consequently, we understand that if the Bidder is a Company, its Promoter —holding controlling stake in the bidder as
The relevant clauses are
per the above definition, would also be qualify as an Associate, as the Promoter is having the power to direct the
self-explanatory.
management and policies of such Bidder. Therefore, the net worth of the Promoter could also be considered while
evaluating the Company’s bid to meet the net worth criteria. Therefore, the Bid can be filed by the Company.
In view of the above, please clarify if the Bid can be filed by a Company individually (and not as a consortium) by using
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the net worth of associate (having 100% shareholding) in said company i.e. Bidder.
RFP however does not prescribe any format for Net worth Criteria of Associate in case of Associate being an individual.
The terms Statutory Auditor has neither been defined under the RFP nor under the PA. Thus, we request you to please
provide a clarification whether the statutory auditor would also include the ‘tax auditor’
Net worth certificate provided by the tax auditor would be provided as documentary evidence of Net worth. Please
confirm.
18. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 2.2.10):
We request you to clarify whether a new SPV is required to be formed by the bidders who were awarded capacity under
Tranche 1 of ACC Battery PLI scheme, or the same SPV can be continued for this Tranche of ACC Battery PLI scheme
to implement the Project.
19. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 2.2.11):
Kindly confirm that the Subsidy which Bidder will be awarded under this Bid and the subsidy / incentive/ benefits
which bidder get from independent states will be exclusive of each other and bidder can claim both.
20. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 2.2.15):
Will MHI be coordinating and obtaining National security and public interest perspective approval based on the
documents submitted by the bidder? Is this approval in addition to the DPIIT approval as required under Order No.
F.7/10/2021-PPD(1) regarding restrictions under rule 144(xi)?
21. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 2.2.15):
Based on the dates mentioned in RFP, clarity required regarding the timelines for qualification as there is only 1 day gap
between bid submission and technical bid opening.
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S. No. Query Response
22. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 2.2.15a):
As the bid is subject to approval being provided by the Government, will the same be provided during qualification (i.e
before technical bid opening) or during the bid award stage?
23. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 2.2.15a/b):
If an Indian Bidder dilutes <25% equity to DPIIT registered Chinese entity, will the bid be considered without the
mentioned government approval in the following cases:
1. At the time of the bid
2. At any stage after the bid
24. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 2.2.17):
"Request to kindly confirm on below points:
1. Kindly confirm if bidder can source the machinery 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."
25. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 2.2.17):
Would ACC Manufacturing as part of the PLI qualify under Schedule II or Schedule III of the GFR Order if the bidder
has a ToT arrangement with a Chinese OEM?
26. Document: RFP The relevant clause is
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Query (Clause: 2.2.17): self-explanatory.
Does an Indian Bidder need to specify the technology transfer agreement in the bid? If not, then can the Indian bidder tie
up with a chinese company for ToT after being chosen as the selected bidder ? If the tie up is allowed after being
selected as selected bidder, can the Indian bidder register with DPIIT after bid submission (at which stage)?
27. Document: RFP The relevant clause is
self-explanatory.
”Query (Clause: 2.2.3):
"Kindly confirm if we as bidder are not an AIF and intends to bid for 10 GWh, than we will require to demonstrate the
networth of Rs. 1500 Cr.
We understand bidder understanding is in line with RFS.
28. Document: RFP Provisions of the bid
documents shall prevail.
Query (Clause: 2.2.3):
To reduce the Net worth to INR 200,00,00,000 (Rupees two hundred crore) per GWh.
29. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 2.2.8):
Kindly confirm if the single / individual bidder also require to submit the Power or attorney or the bidder can only
submit the Board resolution.
30. Document: RFP Provisions of the bid
documents shall prevail.
Query (Clause: 2.7.2):
Can an Indian Bidder dilute 40% equity to a Chinese DPIT registered entity at any of the following stages: 1) bid
submission 2) SPV formation 3)Program agreement execution 4) ACC manufacturing during subsidy disbursement
31. Document: RFP & Tripartite Agreement Provisions of the bid
documents shall prevail.
Query (Clause: 2.2.3 of RFP):
Company "X" is a wholly owned subsidiary of Company "Y". Company "X" does not possess the necessary net worth to
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S. No. Query Response
bid independently, and therefore seeks to leverage the net worth of Company "Y", a publicly listed company that meets
the required criteria.
In light of this, we kindly request clarification on the following matters:
1. Can Company "X" qualifies for the bid if its parent company, Company "Y", meets the net worth requirements?
2. Would it be necessary to form a consortium between Company "X" and Company "Y", or can Company "X"
participate in the bid on its own?
3. What would be the structure and conditions of a Special Purpose Vehicle (SPV) involving Companies "X" and "Y" if
Company "X" were to win the bid under the aforementioned circumstances?
4. Given that Company "Y" has already signed a Memorandum of Understanding (MoU) with the state for the
establishment of an ACC plant, would it be necessary for the SPV to sign a Tripartite agreement? If so, could you please
clarify the process for this?
32. Document: RFP Provisions of the bid
documents shall prevail.
Query (Clause: 3.1.1):
To reduce the Net worth to INR 200,00,00,000 (Rupees two hundred crore) per GWh.
33. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 3.1.3):
Kindly confirm if the certificate to submit along with bid response duly certified by CA / statutory auditor.
34. Document: RFP Provisions of the bid
documents shall prevail.
Query (Clause: 3.2.1):
Kindly confirm there is no minimum requirement of installation of ACC manufacturing capacity within 2 (two) years.
35. Document: RFP Provisions of the bid
documents shall prevail.
Query (Clause: 3.2.1):
"""Commit Value Addition of 25% within 3 years and minimum 60% within 5 years from the Appointed Date.
Reason: Any Indigenous Indian raw material manufacturer entering this domain, will grow in phased manner execution,
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given the financial constraints, non-secured raw material supply chain, skepticism in the demand side of the market. As
domestic Upstream market is currently evolving, they will take minimum 3-4 years to be competitive with the overseas
suppliers."
36. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 3.2.2):
The illustration given in 3.2.2 is not clear. We request 3.2.2 to kindly elaborate more for further clarity.
37. Document: RFP The relevant clause is
self-explanatory.
Query (Clause: 3.3.3):
Kindly add the illustration along with the clause for better understanding of the provisions.
38. Document: RFP Provisions of the bid
documents shall prevail.
Query (Clause: 3.3.3):
Bidder requests to add Cycle life > 5000 & > 7500 in ACC subsidy matrix.
39. Document: RFP Provisions of the bid
documents shall prevail.
Query (Clause: 3.3.5):
What is the rationale behind phasing down the base subsidy benchmark from year 4 (100%) to year 7 (43%)?
40. Document: RFP The relevant clauses are
self-explanatory.
Query (Clause: 3.4.1):
Kindly confirm from which table the value of ST and SF will be evaluated.
41. Document: RFP The relevant clauses are
self-explanatory.
Query (Clause: Annexure III and Appendix IX):
As per GFR rules Procurement Order Number 4 dated 23 February 2023 of RFP), in case of ToT, the Beneficiary Firm
shall be required to take approval only from MHI (and not of DPIIT), which shall be competent authority in this case.
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Please confirm.
42. Document: RFP Provisions of the bid
documents shall prevail.
Query (Clause: Annex III Public Procurement Order Number 4 dated 23 February 2023 of RFP):
Public Procurement Order Number 4, dated 23 February 2023, stipulates the necessity for the registration of 'specified
Transfer of Technology' acquired from countries that share a land border and fall within the Sensitive Sector category or
technology as outlined in the order.
We understand that ACC manufacturing does not fall under the purview of the Sensitive Sector or technology (as
above). Accordingly, if any information is required from obtaining technology from a person located in a country
sharing land borders with India, the Beneficiary Firm shall be required to provide such information to MHI, which shall
be competent authority in this case. Please confirm.
43. Document: RFP Provisions of the bid
documents shall prevail.
Query (Clause: Annex III Public Procurement Order Number 4 dated 23 February 2023 of RFP):
It may be noted that the RFP for the first tranche of ACC PLI (Annexure III) did not have any requirement to give a
declaration that there is “no transfer of technology” from a specified country. However, this specific condition has been
introduced in the current RFP. This renders the bidders of current RFP to be in a disadvantageous position, considering
the fact that technology is the backbone of ACC manufacturing.
We request that this clause should be removed altogether to provide a level playing for earlier successful bidders and
current bidders.
44. Document: RFP Provisions of the bid
documents shall prevail.
Query (Clause: Appendix X 6.1 & 6.3):
Can the proportion of shareholding be changed during formation of the SPV against as mentioned in Joint Bidding
Agreement? Apart from lead member, do other members of the bidding entity also have to follow any equity lock? If
yes, kindly specify the period of suggested equity lock-in requirements.
45. Document: RFP Provisions of the bid
documents shall prevail.
Query (Clause: Appendix XI):
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Need following clarification:
1. Whether SPV is required to be incorporated in all cases;
2. Expenditure incurred on Plant and Machinery, Equipment’s and Associated Utilities would 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
46. Document: RFP Provisions of the bid
documents shall prevail.
Query (Clause: APPENDIX- XII):
We request to kindly provide the details - PAN Card, GST, and confirmation regarding MSME, if applicable. The same
is required for internal vendor code process.
47. Document: RFP Provisions of the bid
documents shall prevail.
Query (Clause: Not specified):
We request to kindly confirm regarding the Time period / timeline which will be considered for value addition criteria.
Also, we request to kindly confirm how the Value addition evaluation will be done.
48. Document: RFP Provisions of the bid
documents shall prevail.
Query (Clause: Not specified):
Kindly confirm how the fluctuation/changes in prices of raw material will be considered if it will impact the prices of
end material.
49. Document: RFP Provisions of the bid
documents shall prevail.
Query (Clause: Not specified):
Kindly confirm and provide the details of the methodology / SOP which will be followed for calculation of domestic
value addition.
50. Document: RFP Provisions of the bid
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Query (Clause: Not specified): documents shall prevail.
Kindly confirm if Bidder is allowed to place orders for machinery and other material requirements of plant prior to bid
submission date.
51. Document: RFP Provisions of the bid
documents shall prevail.
Query (Clause: Not specified):
Kindly confirm that bidder is allowed to utilize the SPV company which was registered by bidder earlier however,
haven't utilized the same for any other purposes till date.
52. Document: RFP Provisions of the bid
documents shall prevail.
Query (Clause: Not specified):
Kindly confirm if bidder is allowed to change the location / other details which bidder declared / submitted initially
during the bid submission.
53. Document: RFP Provisions of the bid
documents shall prevail.
Query (Clause: Not specified):
Inclusion of ≥150 Wh/kg energy density and ≥3000 cycle life
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54. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Clause: 1.1):
As some of the equipment manufacturers are providing design capacity of equipment in terms of Input capacity also,
clarity required on Committed Capacity to be quoted is Design Input or Output capacity?
55. Document: Programme Agreement The relevant clauses are
self-explanatory.
Query (Clause: 1.1):
Whether the Word “Liquidated damages”, which has not been defined in Programme agreement, and word “Damages”
shall be read interchangeably and scope of both is the same
56. Document: Programme Agreement The relevant clauses are
self-explanatory.
Query (Clause: Article 1):
As per the current definition of the Mother unit, for the purpose of computing value addition and committed capacity
activities done in single roof establishment will be considered.
Hence, whether capacity and value add from two separate location of the same entity will be considered or not.
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57. Document: Programme Agreement The relevant clauses are
self-explanatory.
Query (Clause: Clause 1.1):
Expenditure incurred on Land, Building, Dry room and dehumidification unit along with Plant, Machinery,
Equipment and Associated utilities. Building shall include Development cost for such as fencing, construction of
internal roads, permanent buildings, Administrative Block, permanent Plant Structure, Residential facilities developed
for accommodation and hostel facilities for employees within 10Km radius of the project premises.
58. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Clause: 1.1):
As per industry standard, scrap rates are 4-5%. Hence, “value addition” should exclude input cost of 5% that is towards
such scrap.
59. Document: Programme Agreement The relevant clause is
self-explanatory.
Query (Clause: 1.2):
Bidder understands that Appointed date shall be on commencement of “quarter” i.e. either April 1, July 1, October 1 or
January 1. Since Programme agreement date is 18.10.2024 so appointment date shall begin from which quarter. Kindly
confirm.
60. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Clause: 1.4.1):
We suggest to include the effect of DoD (depth of discharge) in the cycle life. Instead of cycle, we suggest using full
cycle equivalent defined as,
Full cycle equivalent = cycle life x DoD of cycling
For example, if there is 100Wh cell, cycled at 80% DoD and exhibits cycle life of 2000, its full cycle equivalent would
be 2000 x 0.8 = 1600.
This would ensure a level playing field between bidders suggesting different DoD.
61. Document: Programme Agreement Provisions of the bid
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Query (Clause: 1.4.2): documents shall prevail.
Linear extrapolation of cycle life is would not give accurate results, as the capacity fade rate decreases with cycle.
There is no standard process available for accelerated life cycle test. We suggest to consider at least two accelerated
cycling (high rate or high temperature or both) and use these to estimate the claimed life at standard condition (25°C ,
0.5C/0.5C).
Among high temperature or high rate cycling, whichever has stronger effect on capacity fade can be considered. We
suggest to perform accelerated degradation to be carried on until the actual EOL (End of Life) (i.e. 80% SOH (State of
Health or whichever is the claimed EOL). In parallel, cell cycling at standard condition can continue.
A relationship needs to be established between accelerated degradation and standard degradation methods. Here we can
take either a simple curve fitting or a physics- based model or a ML (Machine Learning) assisted prognostic tool.
62. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Clause: 1.4.2.3 schedule D):
In this regard, we wish to state that some ACC will have multiple degradation slopes, in which case the degradation
curve will not be linear.
In such case, clarity is needed as to whether it is mandatory to follow the degradation curve as given in clause 1.4.2.4.
For instance, at 2000 cycles, available energy would be ≥85% (and may not be ≥90%) but still be able to reach ≥80%
State of Charge (‘SoC’) at 4000 cycles.
63. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Clause: 1.4.2.4 of Schedule D):
Clause 1.4 of the Programme Agreement specifies the testing criteria to assess the life cycle capacity of the batteries. In
this regard, we wish to state that some ACC will have multiple degradation slopes, in which case the degradation curve
will not be linear.
In such case, clarity is needed as to whether it is mandatory to follow the degradation curve as given in clause 1.4.2.4.
For instance, at 2000 cycles, available energy would be ≥85% (and may not be ≥90%) but still be able to reach ≥80%
State of Charge (‘SoC’) at 4000 cycles.
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64. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Clause: 4.8, 8.2, 8.3, 16.1 and 16.2):
The penalty by way of adjustment of subsidy has been provided in Clause 8.2 and 8.3. Liquidated damages have been
additionally prescribed under Clause 4.8. Termination has also been provided for in the Clause 16.1 and 16.2 in the
event of a default.
- For the calculation of penalty, will there be any tolerance limit (+/- 5%)? Also, would companies get the benefit for
any force majeure issues?
- Will there would be any capping for invoking the performance security in proportion to non fulfilment of
commitments?
In the event the value addition criteria is not met, the subsidy amount would be adjusted under Clause 8.3. The investor
would be additionally liable to pay liquidated damages under Clause 4.8. This would result in levy of penalty twice for
the same default.
Suggestion:
It is recommended that the liquidated damages and penalty are capped. Also, provisions for relaxation/ extension of
timelines should be granted in the case of force majeure issues.
65. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Clause: Article 5 (5.1k)):
Can an Indian selected Bidder dilute 40% equity to an entity (which doesn’t share land border with India) during any
one of the following milestones: 1. SPV formation? 2. After Program Agreement execution? 3. During period of ACC
manufacturing?
66. Document: Programme Agreement “Milestone 1”
mentioned in in clause
Query ( Clause 6.2.4):
6.2.4 of “ARTICLE 6
With the given facts, in the place of Milestone 1, it has to be Milestone 2.
OBLIGATIONS OF
THE PARTIES” of the
Programme Agreement
shall be read as
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“Milestone 2”.
67. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Clause6.2.4):
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?
68. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Clause: 6.2.6, 6.2.7, 8.2, 8.3 and 11.9.3):
Need clarification on the ceiling of the penalty. Is this the same as amount of performance security or limited to
committed capacity for the purpose of the penalty under clause 8.2 of Programme agreement.
Such unlimited damages, penalties or forfeiture on the Beneficiary firm may be more concerning in the current situation
given that the current manufacturing ecosystem of ACC in India is not mature, and the performance of the Beneficiary
firm is dependent on various uncontrollable factors like availability of raw material etc., demand of ACC in future etc.
69. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Clause: 6.2.7/16.1.1):
On perusal of above clauses, need clarification whether the performance security would be appropriated only after the
18 months of consecutive default or same may be appropriated on quarterly basis
70. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Clause: 6.2.7/16.1.1):
On perusal of above clauses, need clarification whether the performance security would be appropriated only after the 6
quarters/ 18 months of consecutive default or same may be appropriated on quarterly basis.
71. Document: Programme Agreement The relevant clauses are
self-explanatory.
Query (Clause: 6.2.9 and 16.2.2):
On perusal of the clause, it appears that subsidy payable for the period after occurrence of the default could be forfeited
by the Government and the same should not impact the subsidy already received by or accrued to the Beneficiary firm
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before the date of such event. In this regard, usage of the word ‘entire incentive’ in the subject clause seems to be
contrary to this understanding.
Require clarification whether the termination of Agreement under clause 16.2.2 of the Programme agreement should not
impact the subsidy earned by the Beneficiary firm till the date of such termination since such subsidy were earned after
fulfilling applicable conditions prescribed under the Agreement in relation to the respective claim period.
72. Document: Programme Agreement The relevant clauses are
self-explanatory.
Query (Clause: 6.2.9 and 16.2.2):
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?
73. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Article 7):
We request your good office to kindly provide the provisions in RFS and this clause for Bid security to kindly allow
Payment on Order Instrument (POI) as an alternative to submission of Bid security wherein the Bidder also has an
option to submit a letter of undertaking issued by either of the following three organizations, viz. (I) Indian Renewable
Development Agency Limited (IREDA) or (ii) Power Finance Corporation Limited or (iii) REC Limited. The same
provisions are being followed and acceptable in the bids of entities such as SECI, NTPC, and other REIAs and tendering
authorities as well.
74. Document: Programme Agreement The relevant clause is
self-explanatory.
Query (Article 7):
Kindly confirm that only below BGs towards Performance security will be applicable: 5 GW - Rs. 50 Cr and Upto 10
GW - Lumpsum Rs. 75 Cr. Bidder is not required to submit the BG of more than Rs. 75 Cr in any scenario. Kindly
confirm.
75. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Article 7):
Kindly confirm the validity of the PBG which bidder requires to submit
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76. Document: Programme Agreement The relevant clause is
self-explanatory.
Query (Clause: 7.1.2):
Does the Performance Security beyond 5 GWh be considered on a pro rata basis of INR 5 Cr/GWh upto INR 75 Cr for
10 GWh?
77. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Clause: 7.2.2):
We request you to remove replenishment of Performance Security within 15 days as this will further burden the Bidder.
78. Document: Programme Agreement The relevant clauses are
self-explanatory.
Query (Article 8):
We request to kindly incorporate the illustration for both 8.2 and 8.3 for better understanding and to avoid any error in
understanding.
79. Document: Programme Agreement The relevant clause is
self-explanatory.
Query (Clause: 8.2):
Based on perusal of the specified clause along with other relevant clauses in the Agreement, it is understood that
shortfall in achieving committed capacity should be measured with respect to installed capacity and not the sale.
80. Document: Programme Agreement The relevant clause is
self-explanatory.
Query (Clause: 8.2):
Considering an illustration where Beneficiary Firm has specified Committed Capacity of 5 GWh, however actual
capacity installation achieved is 2 GWh. As per the provisions of clause 8.2, Government shall deduct subsidy payable
for 2*(5-2) =6 GWh. 6 GWh is higher than the proposed subsidy to be paid for the Committed Capacity i.e. 5 GWh.
Bidder understands that the maximum liability and deduction under the clause 8.2 shall be equivalent to the amount of
Subsidy payable. Kindly clarify.
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81. Document: Programme Agreement The relevant clauses are
self-explanatory.
Query (Clause: 8.2, 8.3 and ANNEXURE 1):
In case maximum penalty is on account of committed capacity not fulfilled within the said quarter, then only that
penalty will be levied and not both – need confirmation.
82. Document: Programme Agreement The relevant clause is
self-explanatory.
Query (Clause: 8.3, Article 8):
Clause 8.3 under Article 8 of Programme Agreement defines “damages” to be deducted from the winning bidder’s
subsidy calculation in case of shortfall in meeting committed value addition.
Can an illustration be provided for this just like the illustration provided in Clause 8.2 for shortfall in meeting committed
capacity?
83. Document: Programme Agreement The relevant clause is
self-explanatory.
Query (Clause: 11.7):
Please clarify definition of sale price in context of (a) domestic sale and (b) export sale. For e.g., clarity is needed
whether sale price can include logistics cost etc.
84. Document: Programme Agreement The relevant clause is
self-explanatory.
Query (Clause: 11.9.1):
1. If a bidder produces different ratings (Ah capacity and/or charge-discharge rate) of cells, does bidder need to
certify each kind of cells ? Please confirm.
2. Also, clarify incentive disbursement calculation criteria for other than 0.5C/0.5C cells (for example 0.1C/0.1C or
0.25C/0.25C or 1C/1C etc.).
85. Document: Programme Agreement The relevant clause is
self-explanatory.
Query (Clause: 12.3):
Given the above, it is pertinent to clarify the periodicity in which the specified Milestone completion certificate would
need to be procured/ updated by the Beneficiary Firm from the Independent Engineer.
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Whether Beneficiary need to procure such certificate in end of each quarter
86. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Clause: 14.2b):
We suggest that the exclusion of beneficiary firm, contractor or their respective employees/ representatives or
attributable to any act or omission of any of them, from the applicability of Force Majeure event may be removed, as
any strike/ boycotts at beneficiary firm/ their contractors could severally affect the implementation of the project,
which could be beyond the reasonable control of the Beneficiary Firm/ its respective contractors/ employees.
Further continuous or intermittent strikes, public issues, boycotts during office hours could also adversely affect the
ability of the beneficiary firm to implement the project in a timely manner and may be explicitly covered under the
agreement. The requirement of continuous period of 24 hours may not be met in all cases, as the strikes could be only
during office hours of the day and will be continuing in nature without meeting the requirement of 24 hours. Hence, we
request to modify the clause as follows:
Clause 14.2(b)
strikes or boycotts, public issues, civil disturbances interrupting supplies and services to the Project during its normal
office / working hours during any relevant day.
87. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Clause: 16.1e):
Event of Default is a critical provision under the agreement which is not expected to be triggered owing to any mere
breach of obligations, which may not have any impact on the project.
Suggestion:
We request to delete this clause or alternatively modify the clause as follows: ‘’breach of any other material obligations
under this agreement’’
88. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Clause: 18.5.1b):
The beneficiary firm will have lot of dependencies on the Government, State Government, and Government
Instrumentalities for execution of the project. As understood the liability of beneficiary firm is not limited as per the
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agreement.
Suggestion:
In the above backdrop, we request that the liability of beneficiary firm under this agreement may be restricted to the
amount of subsidies receivable under this agreement. We also request that the indirect losses and damages may be
specifically excluded. Hence, the clause may be modified accordingly.
89. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Annex – I Subsidy Determination Form, Schedule - B):
As per Sr. No. (a) of Annex – I i.e. Subsidy Determination Form, we understand that the quantity of cells sold during the
quarter for which the subsidy disbursement claim will be filed by the beneficiary firm will be required to be reported.
We wish to understand that whether the quantity of cells sold from the capacity installed from the earlier investment
made for ACC Battery would also be included to arrive at the quantity of cells sold during the quarter, or the quantity of
cells sold from the investment made after the appointed date for this second Tranche of ACC Battery PLI Scheme would
only be considered to determine the eligible subsidy amount.
90. Document: Programme Agreement The relevant clause is
self-explanatory.
Query (Schedule – E):
Kindly confirm if the incentives to Bidder will be linked to the sale of product or disbursement of incentives will be
independent of Sales.
91. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Schedule D (1.4.2.2)):
Kindly elaborate on how the position change in ACC matrix is considered and the suggested suitable penalty to be paid
by the bidder. Also, kindly specify the applicable penalties in case the position change results in life cycle entering non
shaded area.
92. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Schedule D and E):
Given the above, for a Beneficiary firm committing to manufacturer ACC with 2000 or 4000 complete cycle life, the
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partial cycle life testing of such ACC could take 6 to 9 month or 1 to 1.5 years, respectively.
Given the estimated time period required to perform the cycle life test, pre-condition to complete Partial cycle life test
for disbursement of subsidy under the Scheme, may lead to substantial delay in receipt of subsidy which may not be in
favour of the interest of the Beneficiary Firm.
93. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Schedule D and E):
Given the estimated time period required to perform the cycle life test (full or even partial), which is a pre-condition to
complete, for disbursement of subsidy under the Scheme, it may lead to substantial delay in receipt of subsidy which
may not be in favour of the interest of the Beneficiary Firm
94. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Schedule D, Clause: 1.3.3.2):
“The global trend is any battery chemistry the Energy density is calculated based on Rated Capacity as per the
manufacturer and not on the 80% of Rated capacity.
We request you to consider 100% for calculation of Energy Density”
95. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Schedule E):
As mentioned during pre-bid conference, we would request a detailed Standard Operating Procedure (‘SOP’) to be
provided, explaining how Local Value Addition will be calculated.
96. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Schedule E, Clause: 3)):
- In this regard, need confirmation whether value added confirmation by statutory certificate of Tier 1 supplier will
suffice to provide VA.
- Need confirmation on whether cost of Raw Material from ancillary unit and/or domestic manufacturers would be
considered when calculating the VA.
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If RM cost is not included, then growth in %VA can only come from decreasing RM cost and/or higher sales price,
which is counter intuitive. Need clarification.
- Based on various clauses of the Agreement, it appears that the Beneficiary Firm has to achieve value addition of
25% within 2 years from the appointed date.
At this point, it may be noted that in order to set up a manufacturing facility to produce ACC of a committed
performance standard may take substantial time which may extend to 18 to 20 months i.e. 18 to 20 months from the
Appointed date. This makes achieving VA targets right from start of production very difficult.
Since this agreement entails damages/ penalties on the firm and may also result in termination of the Agreement,
consider providing additional time to localise.
97. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Schedule E, Clause: 3):
If a cell manufacturer plans to setup an in-house battery chemicals plant (which will supply certain
materials/components to the cell manufacturing plant), would those material/components be eligible to be counted
towards LVA?
98. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Schedule E, Clause: 3):
Q1- Please confirm whether cost of raw material would also include cost of fuel, if yes than why cost of fuel reduced
separately in the Value-Add formula.
Q2- Further, as per the Value-add formula – Cost of fuel consumed, if eligible for GST input credit is to be reduced
while computing the Value addition. Whether is there any logic to not consider the fuel for which input credit is not
availed.
99. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Schedule G):
Clarity is needed as to whether it is necessary to follow the cycle numbers as a discrete value mentioned in the table
given in Schedule – G or can it be a range of values.
Cycle life shall be considered on pro rata basis between 125 Wh/Kg & 4000 Cycles and 200 Wh/kg & 2000 Cycles. The
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S. No. Query Response
basis shall be the Energy density for such prorate cycle life calculation.
100. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Schedule – J):
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"
101. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Schedule – J):
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
102. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Schedule – J):
Kindly confirm if bidder sells the end product to its group company / sister concern, how the same will be treated.
103. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Schedule – K):
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.
104. Document: Programme Agreement Provisions of the bid
documents shall prevail.
Query (Schedule – K):
Kindly confirm if bidder is allowed to change the duration post declaration in this schedule.
105. Document: Programme Agreement The relevant clause is
self-explanatory.
Query (Schedule – N):
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S. No. Query Response
The meaning of CS_i is not clear. Kindly clarify and elaborate the details.
106. Document: Tripartite Agreement Provisions of the bid
documents shall prevail.
Query (Clause: Not specified):
As part of the ACC PLI Tranche 1 process, a lot of hurdles were faced in getting the tripartite agreement signed with the
state government.
Moreover, in light of the upcoming state elections, getting the tripartite agreement signed with the state governments can
be challenging, and code of conduct norms might be an issue. Hence, we request if we can have the agreement to be
signed only between Central Government and Beneficiary.
107. Document: Not specified Provisions of the bid
documents shall prevail.
Query (Clause: Not specified):
Can the winning SPV acquire / secure transfer / rent assets from another company with:
- An operational cell manufacturing facility
- An under construction cell manufacturing facility (yet to be operationalized)
108. Document: Not specified Provisions of the bid
documents shall prevail.
Query (Clause: Not specified):
Could you please clarify the proposed operating conditions for calculating cycle life? (any defined operating voltage
ranges, etc)
109. Document: Not specified Provisions of the bid
documents shall prevail.
Query (Clause: Not specified):
How is committed & commissioned capacity calculated?
- Can a player setup multiple lines which are all capable of manufacturing PLI eligible cells but decide to sell & secure
PLI subsidy on partial cell sales in line with market requirements?
110. Document: Not specified Provisions of the bid
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S. No. Query Response
Query (Clause: Not specified): documents shall prevail.
Same manufacturing capacity can be used to manufacture stationary storage & mobility cells - how will this be treated?
111. Document: Not specified Provisions of the bid
documents shall prevail.
Query (Clause: Not specified):
What are the timelines for issue & award of proposed MHI ACC PLI?
112. Document: Not specified Provisions of the bid
documents shall prevail.
Query (Clause: Not specified):
In case we have direct pack or module sales to customers which would include own manufactured cells, would the cell
sales be counted in total sales eligible for subsidy
113. Document: Not specified Provisions of the bid
documents shall prevail.
Query (Clause: Not specified):
In case we have export sales to customers which would include own manufactured cells, would the cell sales be counted
in total sales eligible for subsidy
114. Document: Not specified Provisions of the bid
documents shall prevail.
Query (Clause: Not specified):
Are the accrued revenues that are accounted for whilst calculating revenue cap for subsidy payout inclusive of all cells
that are manufactured in facility (even those that are not eligible for subsidy or sold for non transport use cases (e.g.
stationary storage))
115. Document: Not specified Query not pertaining to
the bid documents.
Query (Clause: Not specified):
FY 2022- FY 2023- FY 2024- FY FY 2026- FY 2027- FY 2028-
Total
23 24 25 2025-26 27 28 29
Page 27 of 33Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advance Chemistry Cell (ACC) under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses
S. No. Query Response
Outlay Setting up of
Rs. In manufacturing 2,700 3,800 4,500 4,300 2,800 18,100
crore facilities
DVA 25% 26%~ 60%
Rs. 225
Investment Rs. 225 crs/Gwh
crs/Gwh
To provide clear map on 7 Years of scheme period for new entrants.
116. Document: Not specified Provisions of the bid
documents shall prevail.
Query (Clause: Not specified):
Particulars Penalty Damages
Article 6 Article 8
Time Effect of clause Not achieved within the stipulated time Achieved less than the committed values
Nature of effect 0.1% of performance security provided To the extent not achieved - Reduced
per day of delay from the subsidy granted
Milestone 1 certificate Not obtained – Penalty to pay No incentives
Committed capacity Not achieved - Penalty to pay Difference (2X) to be deducted from
subsidy
Committed value addition Not achieved - Penalty to pay Difference to be deducted from subsidy,
in case of negative to be adjusted in
subsequent Qtrs.
a. Both Penalty & Damages will be applied in case of default?
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b. Basis of calculation of value of deduction from Subsidy? Eg. Committed 50% VA, achieved 40% - Difference
10% to be deducted from Subsidy. How this 10% will be computed ? or Subsidy will be given for 30%?
c. If there is no incentive to adjust, how the damages will be recovered? For example, during 6th year, 60% VA to
be achieved for claiming incentive, only 40% achieved, how the damages to the extent of 20% will be
recovered?
117. Document: Not specified Provisions of the bid
documents shall prevail.
Query (Clause: Not specified):
Kindly elaborate on requirements of SPV, roles & responsibilities? Investment has to be made by SPV?
118. Document: Not specified Provisions of the bid
documents shall prevail.
Query (Clause: Not specified):
What is the amount of penalty in-case of non-achievement of Milestone 2.
Is it limited to non-payment of further incentives?
Performance security penalty to the tune of Bid security or complete performance security.
(10 Cr : Bid Security , 75 Cr : Performance Security [10GWH])
Will non achievement of milestone 2 impact on the incentive already earned?
119. Document: Not specified Provisions of the bid
documents shall prevail.
Query (Clause: Not specified):
If a bid winner backs out due to whatsoever reason, will the allotted capacity be allocated to the next in-queue bidder, or
a separate PLI Tranche would be issued for it?
120. Document: Not specified Provisions of the bid
documents shall prevail.
Query (Clause: Not specified):
If a bid winner is not able to demonstrate a working cell as per testing conditions stated in the agreement, will they be
disqualified, with their capacity being allocated to the next in-queue bidder?
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S. No. Query Response
121. Document: Not specified Provisions of the bid
documents shall prevail.
Query (Clause: Not specified):
What process/procedures will be enforced to protect beneficiary IP (as periodic report submissions contain cell IP
related details)?
122. Document: Not specified Provisions of the bid
documents shall prevail.
Query (Clause: Not specified):
What process/procedures (site visits, submissions etc.) will be followed to monitor beneficiary progress?
123. Document: Not specified Provisions of the bid
documents shall prevail.
Query (Clause: Not specified):
We request you to allow an existing entity to bid for ACC PLI Tranche 2. If allowed, we request you to clarify the
specific reporting requirements to be provided from "divisional" perspective relating solely to the execution of the ACC
PLI Tranche 2 project.
124. Document: Not specified Provisions of the bid
documents shall prevail.
Query (Clause: Not specified):
How will the PLI disbursement be calculated if the capacity under ACC PLI Tranche 1 and 2 are commissioned at the
same location?
125. Document: Not specified Provisions of the bid
documents shall prevail.
Query (Clause: Not specified):
Will the winning bidder be eligible to draw subsidy if it were to sell part or all of its production output to international
markets?
126. Document: Not specified Query not pertaining to
the bid documents.
Query (Clause: Not specified):
In light of the LVA requirements for eligibility as per this scheme, we suggest adding a condition of 25% or more LVA
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S. No. Query Response
requirement as part of BESS tenders issued from government organizations like SECI. This would help in realizing
ACC capacity committed in PLI.
127. Document: Not specified Clarification is attached
as Annexure-I.
Query (Clause: Not specified):
It is not clear from the RFP document whether a bidder is allowed to commit capacities of multiple chemistries. If it is
allowed, will the bidder have to demonstrate that each of the committed chemistries meet the capacity and value addition
commitments defined in clause 1.1.3 of the RFP document? Or will the bidder be allowed to cumulate capacities and
value addition across all chemistries to meet minimum requirements of the above clause? How will the subsidies be
calculated?
*****
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Annexure-I
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:
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 Density and Cycle Life tests for each of its chemistry.
The final Energy Density and Cycle Life for determination of subsidy shall be the weighted average of individual Energy Density and Cycle Life of each
chemistry.
For e.g., if the manufacturer sells “x” GWh of Chemistry 1 having “ED1” Wh/Kg and “CL1” as the Energy Density and Cycle life respectively, and “y” GWh
of Chemistry 2 with “ED2” Wh/Kg and “CL2” as the Energy Density and Cycle life respectively, the weighted average Energy Density and Cycle life in this
case shall be:
Page 32 of 33Selection of Manufacturers for Setting Up 10 GWh Manufacturing Capacities for Advance Chemistry Cell (ACC) under the Production Linked Incentive (PLI) Scheme – Pre-bid Query responses
Clarification on manufacture and sale of multiple chemistries
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 Density 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.
*****
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