Hyderabad: Three electric vehicle battery (Li-ion) manufacturers are likely to set up their units in Telangana. The units will see a cumulative investment of Rs 1,500 crore in the first phase, said a top official.
The State, which is taking the lead in creating a conducive ecosystem for electric vehicles, is also working on an exclusive EV policy.
“The construction of different facilities is expected to begin in a month or two and the production is likely to begin in nine to 15 months,” said Sujai Karampuri, Director of Electronics, Telangana Government.
The official, however, did not disclose the names of the companies.
Battery manufacturing is an important pre-conditions to develop the electric vehicle ecosystem as battery accounts for almost 50 per cent of the electric vehicle cost. Their cost can be be brought down only if the batteries are produced locally.
The initial production capacity would be one gigawatt and this would be gradually increased to 10 gigawatt in due course. Then, the quantum of investments will increase to Rs 6000 crore.
“Right now the projects are in the pipeline. We will disclose the names in a month or so. All the three companies put together, it will be over Rs 1500 crore investment,” the official said on the sidelines of Electrical Vehicle Summit & Expo 2019, organised by the Indian Chamber Of Commerce here on Wednesday.
“They will start with one gigawatt in the first phase, then they go up to 5 gigawatts. They will be investing Rs 1500 crore in the first phase. But it would translate to Rs 6000 crore, total put together for all three phase,” he said.
Telangana, Karampuri said, is developing a 200-acre park for EVs, which can be extended to 800 acres in future.
Last month, Telangana Chief Secretary S K Joshi informed the central government agency Niti Aayog, which is overseeing the electric vehicle (EV) push in the country, of TS’ readiness to facilitate establishment of giga-scale lithium (Li) ion battery manufacturing plant in the State. Joshi explained in the video conference that that Telangana was suited for hosting 5 Gw capacity battery plant as envisioned by the Centre. Telangana Government could give about 200 acre close to the Hyderabad International Airport and the Outer Ring Road in Hyderabad. The Government will also make available power and water required for the units.
Telangana is one of the five States chosen for this initiative. Niti Ayog asked the States to create demand as per the Centre’s mandate of converting three-wheelers to electric by 2023 and converting all two-wheelers by 2025.
Telangana Principal Secretary for IT and Industries Jayesh Ranjan said, the State Government is implementing many measures and incentives for increasing the use of electric vehicles and also for developing the related ecosystem. The State is also working on an Electric Vehicle Policy.