August 12, 2020
Manufacturing units are expected to be set up at MT Sohna in addition to developing facilities at Block ‘C’-Indri.
The company is also expected to invest Rs.70.8 billion and supply batteries to EV and mobile phone industries.
A 5 per cent reduction of GST on EV is expected to fuel demand for domestic production of Li-Ion Polymer batteries.
The refinement of the IBC and the implementation of the GST has strengthened interests for local manufacturing.
Amperex Technology Limited (ATL), recently announced its acquisition of a plot of 180 acres near Gurgaon, Haryana. The leading manufacturer of Lithium-Ion Polymer (LIP) batteries is expected to set up a production unit at IMT Sohna in addition to developing facilities at Block ‘C’-Indri to boost the manufacturing of rechargeable batteries and cells. Official sources also document a potential six-year investment of Rs.70.8 billion, in addition to a plan to supply batteries to the e-mobility sector and mobile phone industry. The TDK Corporation-owned entity procured the land from the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) through bids.
As the manufacturing sector is being strengthened to become self-sufficient in line with the Government of India’s ‘Atmanirbhar Bharat’ initiative, there is ample incentive for domestic production of batteries. This is buoyed by a 5 per cent reduction of GST on Electric Vehicles (EV) as well as increased incentives for battery production and the strengthening of local EV infrastructure. The sector is also supported by the recent expansion of the Insolvency and Bankruptcy Code (IBC) and the integration of supply chains by the requisite implementation of the Goods and Services Tax (GST). The implementation of 100 per cent FDI in the sector makes it further attractive for foreign investment.
Amperex’s investment in the Electric Vehicles (EV) sector is the latest addition to India’s strong bilateral relations with Japan. During FY 2019-20, the value of bilateral trade between the nations was estimated at US$17 billion. As the third-largest investor in India, Japan has a presence across the automobile, pharmaceutical, chemical, insurance, electrical equipment, and telecommunications sectors in India. With the governmental push to achieve self-sufficiency in domestic manufacturing of goods across sectors and quality bilateral relations, the nation can look to becoming a manufacturing powerhouse soon.