PLI Scheme to Expand Domestic Advanced Chemistry Cell Capacity
ECONOMY & POLICY

PLI Scheme to Expand Domestic Advanced Chemistry Cell Capacity

The Ministry of Heavy Industries (MHI) is administering the Production Linked Incentive (PLI) scheme, the National Programme on Advanced Chemistry Cell (ACC) Battery Storage, approved in May 2021 with a total outlay of Rs 181 billion (Rs 181 bn) to establish 50 GWh of domestic Advanced Chemistry Cell manufacturing capacity. The scheme aims to build domestic scale and resilience in battery storage supply chains while encouraging investment in the latest cell technologies. The PLI is designed to attract large domestic and international manufacturers through structured incentives linked to production and value addition.

Under Round-two bidding, one beneficiary, Reliance New Energy Battery Ltd, signed the programme agreement with MHI on 17 February 2025 to establish an ACC manufacturing facility of 10 GWh capacity. The scheme period for Round-two is seven years from the appointed date of 01.07.2025, with the first two years designated as a gestation period. The agreement reflects a phased approach to capacity building and commercial production timelines.

The scheme provides incentives based on quoted subsidy per kWh and on the percentage of value addition achieved on actual sales by manufacturers. Beneficiaries must achieve at least 25 per cent value addition within two years at the mother unit level and raise value addition to 60 per cent within five years from the appointed date. The policy is technologically agnostic and allocates higher support to superior technologies while allowing qualifying research and development expenditure to count towards investment criteria.

The programme is intended to reduce dependence on imported advanced chemistry cells by enhancing domestic manufacturing capabilities and competitiveness across the supply chain. The ministry conveyed these details in a written reply to the Rajya Sabha, setting out compliance timelines and incentive mechanisms for participating firms. Implementation will be monitored against value addition milestones and production targets to support orderly domestic capacity expansion.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

The Ministry of Heavy Industries (MHI) is administering the Production Linked Incentive (PLI) scheme, the National Programme on Advanced Chemistry Cell (ACC) Battery Storage, approved in May 2021 with a total outlay of Rs 181 billion (Rs 181 bn) to establish 50 GWh of domestic Advanced Chemistry Cell manufacturing capacity. The scheme aims to build domestic scale and resilience in battery storage supply chains while encouraging investment in the latest cell technologies. The PLI is designed to attract large domestic and international manufacturers through structured incentives linked to production and value addition. Under Round-two bidding, one beneficiary, Reliance New Energy Battery Ltd, signed the programme agreement with MHI on 17 February 2025 to establish an ACC manufacturing facility of 10 GWh capacity. The scheme period for Round-two is seven years from the appointed date of 01.07.2025, with the first two years designated as a gestation period. The agreement reflects a phased approach to capacity building and commercial production timelines. The scheme provides incentives based on quoted subsidy per kWh and on the percentage of value addition achieved on actual sales by manufacturers. Beneficiaries must achieve at least 25 per cent value addition within two years at the mother unit level and raise value addition to 60 per cent within five years from the appointed date. The policy is technologically agnostic and allocates higher support to superior technologies while allowing qualifying research and development expenditure to count towards investment criteria. The programme is intended to reduce dependence on imported advanced chemistry cells by enhancing domestic manufacturing capabilities and competitiveness across the supply chain. The ministry conveyed these details in a written reply to the Rajya Sabha, setting out compliance timelines and incentive mechanisms for participating firms. Implementation will be monitored against value addition milestones and production targets to support orderly domestic capacity expansion.

Next Story
Real Estate

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

Next Story
Real Estate

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

Next Story
Infrastructure Urban

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement