The Ministry of Heavy Industries (MHI) administers a Production Linked Incentive (PLI) Scheme namely “National Programme on Advanced Chemistry Cell (ACC) Battery Storage”. Under the scheme, the total outlay is ₹18,100 Crore for a capacity of 50 GWh for a period of 5 years after gestation period of 2 years. A total of 40GWh in two tranches has been allocated to four PLI beneficiaries. Further, as per recommendation of EGoS in July 2024, MHI initiated the process for finalizing bid documents for balance 10 GWh capacity for Grid Scale Stationary Storage (GSSS) applications in consultation with Ministry of New and Renewable Energy (MNRE).
The objectives of the PLI ACC scheme are:
- Promoting indigenous manufacturing
- Enhancing cost competitiveness
- Boosting clean energy and sustainability
- Encouraging investment and innovation
- Developing a robust supply chain and generating employment and economic growth.
By fostering local manufacturing, the scheme aims to decrease dependence on imported batteries, supporting the broader goal of self-reliance in the energy sector. The PLI ACC scheme is end use agnostic as it caters to EV sector, defence, stationary storage and consumer electronics.
The PLI ACC scheme incentivizes beneficiary firms for technology transfer by considering it as an eligible investment and the scheme emphasizes achieving a value addition of at least 60% within five years from the appointed date which encourages technology transfer, Research and Development (R&D) and localization. This focus is expected to benefit domestic cell component manufacturers by integrating them into the local supply chain, developing technological advancements and reducing import dependence.
The implementation of the PLI ACC scheme is projected to generate significant employment opportunities in manufacturing and technical sectors. As intimated by PLI ACC beneficiaries, 809 nos. of persons have been employed for 30 GWh ACC capacity till 31.01.2025.
