The Central Government has approved the Production Linked Incentive (PLI) Scheme 'National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ for achieving manufacturing capacity of Fifty (50) Giga Watt Hour (GWh) of ACC for enhancing India’s Manufacturing Capabilities with a budgetary outlay of Rs 18,100 crore.

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Under the initiative, the emphasis of the Government is to achieve greater domestic value addition, while at the same time to ensure that the levelized cost of battery manufacturing in India is globally competitive. The program is designed in such a manner that it is technology agnostic.

The beneficiary firm shall be free to choose suitable advanced technology and the corresponding plant and machinery, raw material and other intermediate goods for setting up cell manufacturing facility to cater to any application.

The programme envisages an investment which will boost domestic manufacturing and also facilitate battery storage demand creation for both electric vehicles and stationary storage along with development of a complete domestic supply chain & Foreign Direct Investment in the country.

ACC PLI scheme is expected to accelerate EV adoption and hence translate into net savings of Rs 2,00,000 crore to Rs 2,50,000 crore on account of oil import bill during the period of this Programme and increase the share of renewable energy at the national grid level.

This PLI scheme for Advanced Chemistry Cell (ACC) ( Rs 18,100 crore) along with the already launched PLI Scheme for automotive sector (Rs 25,938 crore) and Faster Adaption of Manufacturing of Electric Vehicles (FAME) (Rs 10,000 crore) will enable India to leapfrog from traditional fossil fuel-based automobile transportation system to environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles (EV) based system.

Cabinet Minister for Heavy Industries Mahendra Nath Pandey said that “Today, the increase in demand for EVs due to a favorable regulatory framework, has mainly attracted investment in this sector. Today big companies are investing in electric vehicle manufacturing in India and are interested to join us".
"We should give them more encouragement and keep trying to make India a manufacturing hub. Growth in EV segment of auto industry will definitely help us to achieve India's commitment to Panchtantra given by PM Modi in COP 26 and will provide huge employment opportunities to Indian youth," Pandey further added.

Key Pointers:

- Allotment made for 50 GWh of battery capacity to 4 successful bidders for incentive under  (PLI) Scheme for Advanced Chemistry Cell (ACC) Battery Storage

- Companies below will receive incentives under India's Rs 18,100 crore programme to boost local battery cell production

- Reliance New Energy Solar Limited; Ola Electric Mobility Private Limited;  Hyundai Global Motors Company Limited
Rajesh Exports Limited will receive incentives under India's Rs 18,100 crore programme to boost local battery cell production.

- Manufacturing facility to be set up within a period of two years.

- Incentive to be disbursed on sale of batteries manufactured in India with emphasis on greater domestic value addition.

- Direct investment of around Es 45,000 crore in ACC Battery storage manufacturing projects.

- Net savings of Indian approx Rs 2,50,000 crore on account of oil import bill reduction during the period of this Programme due to EV adoption

- Incentive structure to encourage industry to promote fresh investments in indigenous supply chain/ deep localization for battery manufacturing in the country

- PLI scheme for Automobile and auto components and PLI for ACC along with FAME Scheme to enable India to leapfrog to environmentally cleaner, sustainable, advanced and more efficient Electric Vehicles (EV)based system.

- Total 10 applications were received from industry

- 9 Bidders qualified

- 4 successful Bidders announced

- Rest 5 are in waiting list

- The manufacturing facility would have to be set up within a period of two years. The incentive will be disbursed thereafter over a period of five years on sale of batteries manufactured in India.