Aditi Sharma

NEW DELHI (Reuters) – Indian conglomerate Reliance Industries, South Korea’s Hyundai Motor Co and automaker Mahindra & Mahindra are among companies that have submitted bids under the country’s $2.4 billion battery scheme, two sources told Reuters.

India launched last year an incentive program for local manufacturers of batteries. This was in order to promote domestic production and create storage capacity for renewable energy.

Friday is the final day for technical bids to be submitted

Softbank (OTC:) Group-backed Ola Electric, engineering conglomerate Larsen & Toubro and battery makers Amara Raja and Exide have also submitted bids, the sources said.

All of the names listed by sources didn’t immediately reply to our requests for comment.

India hopes to create a total 50 Gwh of battery storage capacity in five years. This will bring about direct investments of around $6 billion.

Companies must have at least 5 Gwh storage capacity, meet specific local content requirements, and invest more than $850 millions to qualify for these incentives.

Sources said that around 10 companies submitted bids for close to 100 Gwh.

India encouraged global firms like Tesla (NASDAQ:) Inc., Samsung (KS;), LG Energy and Northvolt (OTC:) (to invest).

India is committed to achieving clean auto technology as a part of its strategy to reduce pollution and oil dependency. Electric vehicles (EVs), however, make up only a small portion of India’s total vehicle sales. This is due to the high prices for imported batteries.

South Asian countries want electric cars to represent 30% of private car sales by 2030. They also plan to sell 40% more electric bikes and scooters. The demand for batteries, which contributes about 35% to 44% of total vehicle costs, is driving the South Asian nation’s desire for them.