**Executive Summary**
This document outlines the Ministry of Heavy Industries' (MHI) response to a question regarding the Production-Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery manufacturing. The scheme, approved in May 2021, aims to reduce import dependency and strengthen domestic manufacturing. A program agreement was signed with Reliance New Energy Battery Ltd. on 17.02.2025.
**Key Points / Main Content**
* **PLI-ACC Scheme Overview:**
* Administered by the MHI.
* Officially named "National Programme on Advanced Chemistry Cell (ACC) Battery Storage".
* Approved in May 2021 with a total outlay of ₹18,100 crore.
* Aims to establish 50 GWh of domestic ACC manufacturing capacity.
* **Round-2 Bidding and Agreement:**
* M/s Reliance New Energy Battery Ltd. signed a Program Agreement with MHI on 17.02.2025 for establishing a 10 GWh ACC manufacturing facility.
* Scheme period is seven years from the appointed date of 01.07.2025, with a two-year gestation period.
* **Incentive and Value Addition:**
* The scheme incentives are based on the quoted subsidy per kWh and the percentage of value addition achieved on actual sales.
* Beneficiary firms must achieve a value addition of at least 25% within two years of the appointed date and raise it to 60% within five years.
* **Technological Aspects:**
* The scheme is technologically agnostic.
* R&D expenditures incurred by beneficiary firms are permitted to meet investment criteria.
* **Additional Schemes:**
* The Ministry is not planning additional schemes for indigenous EV battery components production.
**Impact Analysis**
**Beneficiary Firms (e.g., Reliance New Energy Battery Ltd.)**
* **Impact:** Directly benefit from incentives based on the PLI-ACC scheme, enabling the establishment or expansion of ACC manufacturing facilities.
* **Action Required:** Achieve minimum value addition targets (25% within two years, 60% within five years), adhere to scheme guidelines, and leverage R&D expenditures.
**Domestic and International Battery Manufacturers**
* **Impact:** Potential to participate in the competitive ACC battery set-up in India, incentivized by the scheme.
* **Action Required:** Evaluate the scheme's provisions, prepare competitive bids, and establish or expand ACC manufacturing facilities in India.
**Indian Economy**
* **Impact:** Reduced import dependency on ACC, strengthened domestic battery manufacturing capabilities, and a boost to the EV sector.
* **Action Required:** Monitor the implementation of the scheme and its impact on the Indian economy.
Key Entities Referenced
National Programme on Advanced Chemistry Cell (ACC) Battery Storage (PLI ACC Scheme): Production Linked Incentive scheme to incentivize ACC battery manufacturing.
Ministry of Heavy Industries (MHI): Administers the PLI ACC Scheme.
Reliance New Energy Battery Ltd: Signed the Programme Agreement under Round-2 bidding of the PLI ACC Scheme.
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.
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