The Ministry of Heavy Industries (MHI) is administering the Production Linked Incentive (PLI) scheme namely “National Programme on Advanced Chemistry Cell (ACC) Battery Storage” (PLI ACC Scheme), approved in May, 2021 with a total outlay of ₹18,100 crore to establish 50 GWh of domestic Advanced Chemistry Cell manufacturing capacity.

Under Round-2 bidding of the PLI ACC scheme, one beneficiary firm i.e. M/s Reliance New Energy Battery Ltd. had signed the Programme Agreement with Ministry of Heavy Industries on 17.02.2025 for establishing ACC manufacturing facility of 10 GWh Capacity. For Round-2, the scheme period is seven years from the appointed date of 01.07.2025, of which the first two years constitute the gestation period.

The PLI ACC Scheme aims to reducethe dependency on imported ACC in Indiabyenhancing India’s manufacturing capabilities and envisages incentivizing large domestic and international players in establishing a competitive ACC battery set-up in India.

The scheme has provision for incentive based on the quoted subsidy per kWh by the beneficiary firms and the percentage of value addition achieved on actual sales for manufacturers. Beneficiary firms must ensure to achieve a value addition of at least 25% within 2 years (at the Mother Unit Level) from the appointed date and raise it to 60% value addition within 5 years from the appointed date.

The scheme is technologically agnostic and ensures that superior technologies receive higher incentives. Further, under the scheme, expenditures incurred by beneficiary firms on Research and Development (R&D) are permitted to meet investment criteria, allowing them to integrate the latest technology in the implementation of their projects.

This information was given by the Minister of State for Heavy Industries, Shri Bhupathiraju Srinivasa Varma in a written reply in the Rajya Sabha.

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