Aditi Sharma

NEW DELHI (Reuters) -India’s Reliance Industries, Softbank (OTC:) Group-backed Ola Electric and automaker Mahindra & Mahindra have submitted bids under the country’s $2.4 billion battery scheme, the government said on Saturday.

India launched https:// last year as an incentive program for companies looking to make investments in local battery manufacturing. It is aiming to create a national supply chain for clean transportation and storage facilities for renewable energy.

Hyundai Global Motors, engineering conglomerate Larsen & Toubro, and battery makers Amara Raja and Exide have also submitted bids, the Ministry of Heavy Industries said.

The ministry stated that the program will encourage domestic production and attract foreign investment.

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.

According to the ministry, ten bids were submitted by companies totaling around 130 Gwh.

India was also encouraging global companies https://reut.rs/3ntv4K3 such as Tesla (NASDAQ:) Inc, Samsung (KS:), LG Energy, Northvolt and Panasonic (OTC:) to invest.

India is committed to reducing pollution and oil dependency through clean auto technology. 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 Asia’s government wants electric cars to account for 30% of all private vehicle sales by 2030, and electric scooters and motorcycles for 40%. This will drive demand for lithium batteries that currently make up 35% to 40%.