PrashantNews
The Union Ministry of Heavy Industries (MHI), Government of India, on Tuesday signed an agreement with Reliance New Energy Battery Limited, a subsidiary of Reliance Industries Ltd, under the Production Linked Incentive (PLI) scheme for the production of Advanced Chemistry Cell (ACC) for batteries.
ACCs are the new generation advanced energy storage technologies that can store electric energy either as electrochemical or chemical energy and convert it back to electric energy as and when needed. India is currently relying on imports of the ACCs for batteries.
The agreement which is seen as a major step forward toward India’s battery manufacturing sector, awards Reliance New Energy Battery Limited a 10 GWh ACC capacity, following a competitive global tender process. Through this tender, the company became eligible to receive incentives under India’s ₹ 18,100 crore PLI ACC scheme.
This signing is another critical milestone in the implementation of the technology agnostic PLI Scheme on the “National Programme on Advanced Chemistry Cell (ACC) Battery Storage,” approved by the Cabinet in May 2021 with a total outlay of Rs.18,100 crore aimed at achieving a total manufacturing capacity of 50 GWh.
With this signing of the agreement, a cumulative capacity of 40 GWh has been awarded to four selected beneficiary firms out of 50 GWh capacity. In the first round of bidding conducted in March 2022, three beneficiary firms were allocated a total capacity of 30 GWh, and the Programme Agreements for that round were signed in July 2022.
During the ceremony, senior officials from MHI emphasized that the PLI ACC Scheme is designed to boost local value addition while ensuring that the cost of battery manufacturing in India remains globally competitive.
The scheme allows the beneficiary firm the flexibility to adopt the most suitable technology and associated inputs for establishing state-of-the-art ACC manufacturing facilities, thereby supporting mainly the EV and renewable energy storage sectors.
In tandem with the PLI ACC scheme, the Union Budget for FY2025-26 introduced several transformative measures aimed at accelerating domestic battery manufacturing and supporting the growth of the e-mobility ecosystem in the country. Notably, the Budget exempted 35 additional Capital Goods for EV battery manufacturing from Basic Customs Duty (BCD), a targeted initiative designed to boost the production of lithium-ion batteries within India. Moreover, its emphasis on reinforcing domestic manufacturing and promoting value addition, further underscores vision of establishing a robust, self-reliant advanced battery ecosystem.
The Ministry of Heavy Industries remains committed to creating an enabling environment for innovation, fostering a robust domestic supply chain, and attracting significant Foreign Direct Investment—all crucial elements in advancing India’s strategic vision for sustainable development and self-reliance. This initiative of Government of India has acted as a catalyst for Indian cell manufacturers to setup cell manufacturing facilities. Apart from the PLI beneficiary, 10+ companies have already started setting up 100+ GWh additional capacity.