PLI ACC Scheme Attracts Rs 3,237 Cr Investment, Creates Over 1,100 Jobs By Dec 31, 2025 : MoS Heavy Industries

New Delhi, Feb 7 (KNN) Minister of State for Heavy Industries Bhupathiraju Srinivasa Varma, in a written reply to a question in the Rajya Sabha on Friday, said that the Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage aims to reduce India’s dependence on imported battery cells by building domestic manufacturing capacity.

The minister stated that the Ministry of Heavy Industries is implementing the National Programme on Advanced Chemistry Cell (ACC) Battery Storage, approved in May 2021 with a total outlay of Rs 18,100 crore. The scheme targets the creation of 50 GWh of domestic ACC manufacturing capacity.

Progress Under the Scheme

Out of the total targeted capacity, 40 GWh has been awarded to four beneficiary firms. As of December 31, 2025, these firms have reported cumulative investments of Rs 3,237 crore and employment generation of 1,118 jobs under the scheme. However, only 1 GWh of capacity has been installed so far.

Under Round-2 bidding, Reliance New Energy Battery Ltd signed a programme agreement with the ministry on February 17, 2025, to set up a 10 GWh ACC manufacturing facility. For Round-2, the scheme period is seven years from the appointed date of July 1, 2025, including a two-year gestation period.

Incentive Structure and Conditions

The PLI ACC scheme provides incentives based on the subsidy quoted per kilowatt-hour and the level of value addition achieved on actual sales. 

Beneficiary firms are required to achieve at least 25 per cent value addition within two years of the appointed date, rising to 60 per cent within five years.

The scheme is technology-agnostic, allowing higher incentives for superior technologies. Expenditure on research and development is also permitted to meet investment criteria, enabling manufacturers to adopt advanced technologies.

Broader Impact on the Battery Ecosystem

The minister highlighted that the scheme has encouraged wider investment in battery manufacturing. Apart from PLI beneficiaries, at least 10 manufacturers have announced plans to set up battery cell manufacturing facilities with a combined capacity of around 178 GWh over the next five years.

(KNN Bureau)