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Funds lined up for Rs 26-cr rechargeable battery project

M. Somasekhar

NEW DELHI, May 28

A CONSORTIUM of three top financial institutions -- IDBI, UTI, ICICI -- and the Technology Development Board (TDB) have decided to back, with equity and loans up to 90 per cent, a Rs. 26.5-crore venture to manufacture advanced rechargeable batteri es of the Chandigarh-based Twenty First Century Battery Ltd and the National Research Development Corporation (NRDC).

The company has obtained the licence for the cutting-edge technology from Telcordia Inc. of the US, one of the top-most R&D labs that make flexible lithium-ion rechargeable batteries capable of powering cell-phones to pollution-free electric vehicles.

Telcordia, formerly Bellcore has already licensed the technology (covered by 43 worldwide patents) to 17 firms across the world. These ventures currently are at various stages of commercialisation.

The significance of the project is two-fold -- first, it is one of the rare occasions when financial institutions are backing a hitech project with equity participation and second, the technology is a cutting-edge one and in the process of c ommercialisation and not the usual case wherein projects are based on market-proven technology.

The initiative for the venture has come from two well-known technocrats -- Mr. Chandra Mohan of Punjab Tractors and Mr. R.C. Jain. NRDC, the leading technology commercialisation company of the Centre is the main collaborator with an equity pa rticipation of Rs. 50 lakhs.

While the licence obtained is for basic technology to manufacture battery cells, the promoters will fine-tune and package it for specific applications.

In the initial phase of the project, now under way, the promoters are looking at applications of these advanced batteries in mobile phones, communication sets, domestic inverters, UPS for computer systems, especially in rural areas, lap-tops and camcorde rs.

In a parallel stream, technological capabilities are to be built for fabricating batteries that can power electric three- and four-wheelers. These vehicles could be one of the answers to the increasing pollution problems in cities.

The sophisticated manufacturing facility is being set up in the Mohali industrial area in the Ropar district of Punjab. Land has been acquired after due processing by the State Industries Department.

TDB, a venture funding body of the Government, is making its debut in equity participation. It will hold the major equity by providing Rs. 5.90 crores to the overall project, explained Mr. S.B. Krishnan, its secretary.

TDB has over the past three years of its existence signed 65 agreements with the industry for commercialisation of indigenously developed technology, adding up to total project costs of Rs. 758.23 crores. Of this, the board has committed soft loans of Rs . 282.65 crores, he told Business Line.IDBI is participating with Rs. 3 crores as equity and extending a loan of Rs. 7 crores. ICICI is contributing Rs. 3 crores, while UTI has a Rs. 3-crore equity and Rs. 3.25-crore loan component. The promoters are bri nging in Rs. 85 lakhs.