Parliament Question: Production-Linked Incentive for ACC Battery manufacturing

GOVERNMENT OF INDIA MINISTRY OF HEAVY INDUSTRIES RAJYA SABHA UNSTARRED QUESTION NO. 892 ANSWERED ON 06.02.2026 PRODUCTION-LINKED INCENTIVE FOR ACC BATTERY MANUFACTURING 892. DR. K. LAXMAN: Will the Minister of Heavy Industries be pleased to state: (a) the details of the 10 GWh agreement signed with Reliance New Energy Battery Ltd under the PLI–ACC (Advanced Chemistry Cell) scheme; (b) the incentives being provided and timelines for implementation; (c) the manner in which, this scheme is expected to strengthen domestic battery manufacturing and reduce reliance on imports; and (d) whether the Ministry is planning additional schemes for the indigenous production of EV battery components to boost localization? ANSWER THE MINISTER OF STATE FOR HEAVY INDUSTRIES (SHRI BHUPATHIRAJU SRINIVASA VARMA) (a) to (c): The Ministry of Heavy Industries (MHI) is administering the Production Linked Incentive (PLI) scheme namely “National Programme on Advanced Chemistry Cell (ACC) Battery Storage” (PLI ACC Scheme), approved in May, 2021 with a total outlay of ₹18,100 crore to establish 50 GWh of domestic Advanced Chemistry Cell manufacturing capacity. Under Round-2 bidding of the PLI ACC scheme, one beneficiary firm i.e. M/s Reliance New Energy Battery Ltd. had signed the Programme Agreement with Ministry of Heavy Industries on 17.02.2025 for establishing ACC manufacturing facility of 10 GWh Capacity. For Round-2, the scheme period is seven years from the appointed date of 01.07.2025, of which the first two years constitute the gestation period. The PLI ACC Scheme aims to reduce the dependency on imported ACC in India by enhancing India’s manufacturing capabilities and envisages incentivizing large domestic and international players in establishing a competitive ACC battery set-up in India. The scheme has provision for incentive based on the quoted subsidy per kWh by the beneficiary firms and the percentage of value addition achieved on actual sales for manufacturers. Beneficiary firms must ensure to achieve a value addition of at least 25% within 2 years (at the Mother Unit Level) from the appointed date and raise it to 60% value addition within 5 years from the appointed date. The scheme is technologically agnostic and ensures that superior technologies receive higher incentives. Further, under the scheme, expenditures incurred by beneficiary firms on Research and Development (R&D) are permitted to meet investment criteria, allowing them to integrate the latest technology in the implementation of their projects. (d): No. ******