Government Advances Battery Manufacturing with New Programme Agreement
In a significant boost to India’s advanced battery manufacturing sector, the Ministry of Heavy Industries (MHI), Government of India, signed a Programme Agreement with Reliance New Energy Battery Limited, a subsidiary of Reliance Industries Limited, under the Production Linked Incentive (PLI) Scheme for Advanced Chemistry Cell (ACC). The agreement, signed on February 17, 2025, grants Reliance New Energy a 10 GWh ACC manufacturing capacity, making it eligible for incentives under the government’s ₹18,100 crore PLI ACC scheme.
This development marks another milestone in the execution of the “National Programme on Advanced Chemistry Cell (ACC) Battery Storage,” a technology-agnostic initiative approved by the Cabinet in May 2021. The scheme aims to establish 50 GWh of advanced battery manufacturing capacity within India. With the latest allocation, a total of 40 GWh capacity has been awarded to four selected beneficiaries. Previously, in the first round of bidding conducted in March 2022, three firms secured 30 GWh capacity, and their Programme Agreements were formalized in July 2022.
During the signing ceremony, senior officials from MHI underscored the PLI ACC Scheme’s role in enhancing local value addition while ensuring that India’s battery manufacturing costs remain globally competitive. The scheme grants beneficiary firms the flexibility to adopt the most suitable technology and materials for setting up cutting-edge ACC manufacturing units. This initiative is expected to primarily benefit India’s electric vehicle (EV) and renewable energy storage sectors.
Complementing the PLI ACC scheme, the Union Budget for FY2025-26 introduced several strategic measures to accelerate domestic battery production and bolster India’s e-mobility ecosystem. A notable initiative in the Budget was the exemption of 35 additional capital goods for EV battery manufacturing from Basic Customs Duty (BCD), a move aimed at strengthening the domestic lithium-ion battery industry. This step aligns with the government’s broader vision of fostering a self-reliant and sustainable advanced battery ecosystem in India.
The Ministry of Heavy Industries remains steadfast in its commitment to fostering innovation, establishing a robust domestic supply chain, and attracting significant foreign direct investment. These efforts are instrumental in advancing India’s strategic goal of sustainable development and self-reliance. The government’s initiative has already spurred significant industry interest, with over 10 additional companies launching efforts to establish more than 100 GWh of battery manufacturing capacity beyond the PLI scheme beneficiaries.
With this latest agreement, India’s battery manufacturing sector moves closer to realizing its ambitious target of becoming a global hub for advanced energy storage solutions.
