New Delhi: The Ministry of Heavy Industries (MHI) has unveiled a transformative initiative under its Production Linked Incentive (PLI) Scheme, the “National Programme on Advanced Chemistry Cell (ACC) Battery Storage,” with an ambitious outlay of ₹18,100 crore. Aimed at driving innovation and domestic manufacturing, this program targets a production capacity of 50 GWh over five years, following a two-year gestation period.
Firms participating in the scheme must meet stringent criteria, including an investment of ₹225 crore per GWh of committed capacity within two years from the appointed date and achieving a domestic value addition of at least 25% within the same period. Over the next five years, this value addition must increase to 60%. The funds will be disbursed only upon meeting these milestones, ensuring accountability and impactful progress.
Catalyst for Electric Mobility and Renewable Energy
Approved by the Union Cabinet in May 2021, the program seeks to elevate India’s position in advanced battery manufacturing while reinforcing the “Make in India” initiative. By fostering domestic production, the scheme is poised to bolster electric vehicle (EV) adoption and integrate renewable energy into the national grid. This shift could significantly reduce India’s dependency on oil imports, driving economic and environmental benefits.
The PLI-ACC Scheme envisions establishing Giga-scale battery manufacturing facilities, ensuring a robust supply chain for both EVs and stationary storage systems. It also addresses India’s burgeoning energy storage demand, crucial for the EV revolution and renewable energy integration.
Opportunities for New Entrants
Currently, three beneficiary firms have been allocated a total capacity of 30 GWh, leaving 20 GWh available for fresh allocation. This opens the door for new players to participate in India’s green energy transformation.
Speaking in the Rajya Sabha, Minister of State for Heavy Industries and Steel Bhupathiraju Srinivasa Varma emphasized that this initiative will strengthen the ecosystem for electric mobility and battery storage, marking a pivotal step in India’s transition towards sustainable energy solutions.
Future-Ready Goals
With the scheme’s performance period commencing on January 1, 2025, the next five years are critical. India aims to emerge as a global hub for advanced battery technology, reducing its carbon footprint while driving economic growth. By creating a complete domestic supply chain, the program is set to power the future of sustainable energy in India.
