changeadminIn a major step forward for 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) on February 17, 2025.
This agreement awards Reliance New Energy Battery Limited a 10 GWh ACC capacity, following a competitive global tender process and makes it eligible to receive incentives under India’s Rs 18,100 crore PLI ACC scheme.
As India makes significant strides in renewable energy installations to achieve 500 GW of non-fossil fuel-based energy capacity by 2030 and net-zero goals by 2070, energy storage will be vital in this transition.
Energy storage like ACC batteries is pivotal in making renewable energy systems (like solar and wind) more reliable by storing energy during periods of excess generation and releasing it when demand is high or generation is low.
An Advanced Chemistry Cell battery storage uses advanced chemical processes to store electrical energy in a battery. These batteries are designed to have higher efficiency, longer lifespan, and better performance compared to traditional battery technologies.
Some common types of advanced chemistry cells include Lithium-ion (Li-ion) Batteries, Nickel-Metal Hydride (NiMH) Batteries, Solid-State Batteries and Flow Batteries.
In May 2021, the Indian government approved the technology-agnostic PLI Scheme on ‘National Programme on Advanced Chemistry Cell (ACC) Battery Storage’ for achieving a manufacturing capacity of Fifty (50) Giga Watt hours (GWh) of ACC with an outlay of Rs.18,100 Crore.
The PLI ACC scheme is aimed at encouraging the manufacturing of battery storage in India. With this signing with Reliance Industries, 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 Rajesh Exports, Hyundai Global Motors Company, and Ola Electric Mobility were allocated a total capacity of 30 GWh.
Some large Indian companies like Mahindra & Mahindra Ltd, Exide Industries Ltd, Larsen & Toubro Ltd, Amara Raja Batteries Ltd and India Power Corporation Ltd. are also trying to avail incentives of the PLI ACC scheme.
During the ceremony, senior officials from MHI emphasized that the PLI Advanced Chemistry Cell 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 the 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 the Government of India has acted as a catalyst for Indian cell manufacturers to set up cell manufacturing facilities.
Apart from the PLI beneficiary, 10+ companies have already started setting up 100+ GWh additional capacity.
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