India is planning a multibillion-dollar subsidy scheme for domestic battery manufacturing, according to a report

The Indian government is planning a new multibillion-dollar subsidy system for firms that manufacture electrical grid batteries as part of its shift to sustainable energy, according to the Financial Times, citing a power ministry proposal.

According to the Financial Times, the initial proposal for a production-linked incentive subsidy plan would provide Rs. 216 billion ($2.63 billion) from this year to 2030 for firms to put up manufacturing capacity for battery cells in India.

The draught plan obtained by the FT recognised that India could only construct so much more coal power.

According to the draught plan, "international opinion" and "environmental concerns... make further expansion of coal-based thermal generation an infeasible option."

The electricity ministry in India did not reply quickly to a request for comment.

Aside from energy transformation, indigenous battery cell production is critical to lowering the country's reliance on competitor China for battery imports, according to the draught plan.

"If India does not take immediate steps to establish local manufacturing capacity for battery energy storage systems, the imperatives of our energy transition will result in massive imports from China," according to the proposal paper obtained by FT.